Employee Relationship Case Study

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We all will need to create and agency at one time or another, whether the need for a person to contract/represent us for a business transaction or to enter a contract with a third party on our behalf; however, it is very important to understand the differences between an agency, an independent contractor and employer-employee relationships. In this country we need to earn income as a business or as an employee, thus the importance of understanding what laws protect the employer and employee are essential to have a successful relationship between both, the master and the servant.

An agency is created when a person (principal) appoints a second party (person) do handle assets or matters of value on their behalf to a third party. …show more content…

The prominence of ethics is significant for these relationship as well. An employee is expected to have reasonable knowledge of his job and this relationship can be terminated without a cause. What is an employee employer relationship? According to (Ashcroft, 2005), the relationship of employee and employer arises only from a contract of employment, either expressed or implied. One who voluntarily performs the duties of an employee cannot by that act subjects the employer to the liability of an employer. But the relationship may be implied by conduct that demonstrates that the parties agree that one is the employer and the other the …show more content…

An example of employee fraud in our schools according to Alan is in Los Angeles, Mullinax, while he was inspector general, investigated a high school construction project, the Belmont Learning Complex, that began in 1997 with cost estimates that rose to $200 million, making it the most expensive project of its type in the United States before the district stopped construction in 2000, he says. He called in Forensic/Strategic Solutions, which uncovered fraudulent activities and lapses in financial controls—including fictitious vendors, duplicate payments, and widespread violations of competitive bidding policies—totaling more than $70 million (2009). These cases can be criminal but in the case of liability the employee would not incur the losses due to incompetence, but and agent would incur

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