Occupational Wellness: Employment Types, Work Arrangements, and Compensation

Vocabulary practice flashcards covering types of employment, work arrangements, direct and indirect forms of compensation, and occupational wellness concepts.

Nature of Employment

The type of job relationship between the worker and the employer.

Permanent Employment

A job arrangement where an individual enjoys job security and long-term stability, receiving benefits such as paid leaves, health insurance, and pension schemes until resignation or retirement.

Contractual Employment

An arrangement engaging an employee for a specific period or project based on agreed terms, which ends upon expiration unless renewed.

Probationary Employment

An employment arrangement where a worker undergoes a probationary period to evaluate their fitness to qualify for regular employment.

Casual Employment

Work where an employee is only guaranteed hours when needed, typically hired for short-term or intermittent work with no expectation of future work.

Self-Employment

Independent work where individuals (freelancers) work for several clients without an employer, enjoying control over their schedules and fees while lacking standard employee benefits.

Part-Time Employment

Jobs conducted for fewer hours than full-time jobs, where wages are distributed based on hours worked without additional employee benefits.

Physical (On-site) Work

A work arrangement where employees report to a fixed workplace (such as schools, offices, factories, or farms), offering clear supervision and teamwork but entailing travel time and physical fatigue.

Remote Work

A work arrangement where work is done from home or anywhere using technology, offering flexibility and reduced expenses alongside challenges such as isolation and home distractions.

Hybrid Work

A work arrangement combining on-site and remote work where employees alternate between home and the workplace, balancing flexibility and collaboration.

Compensation and Benefits

The monetary and non-monetary rewards an employee receives from their employer in exchange for their work.

Direct Compensation

The financial compensation directly paid to employees in exchange for their labor, such as wages, salaries, bonuses, tips, and commissions.

Indirect Compensation

A type of payment or provision to an employee that does not involve directly paying a wage or salary, also referred to as fringe benefits (e.g., health insurance, life insurance, employee stipends).

Wage

A direct payment made by an employer to an employee for work performed within a specific period of time.

Salary

The fixed money that an employee is paid each month by their employer.

Bonus

An amount of money added to wages on a seasonal basis, specifically given as a reward for good performance.

Tips

Discretionary (optional or extra) payments determined and given by customers directly to employees.

Commission

Compensation paid to an employee after completing a specific task, often linked to selling a certain number of products or services.

Overtime Pay

The compensation paid to an employee for hours worked beyond standard hours in a pay period, calculated as: $\text{Hourly pay rate} \times 1.5 \times \text{OT hours worked}$.

Merit Pay

A performance-related pay structure providing bonuses or base pay increases for employees who hit targets or perform effectively according to measurable criteria over a predetermined period of time.

Incentive Pay

A financial reward designed to motivate employees by paying for performance rather than the number of hours worked (e.g., annual bonus, signing bonus, spot bonus).

Health Insurance

An agreement in which an insurance company agrees to pay for some or all medical expenses in exchange for a monthly premium payment.

Life Insurance

A type of insurance that pays out a sum of money following the death of the insured individual or provides a benefit on a specified date.

Employee Stipend

A form of compensation paid to certain individuals for services rendered, other work, or while they receive training.

Occupational Wellness

A state of personal well-being achieved when a person understands their type of employment, work arrangement, and compensation and benefits, aligning them with their skills, values, and lifestyle.