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Conditions of employment

What are conditions of employment?

Conditions of employment refer to the rules, policies and other requirements that an employer and employee agree to uphold during the employee’s tenure in the organization. Conditions of employment are also known as ‘terms of employment’. 

Conditions of employment are usually found in job postings, company handbooks, policy manuals, and employment contracts.  

Condition of employment


Who determines the Conditions of employment?


The job marketplace and state law have the most power in determining an organization’s Conditions of employment.

In a free job marketplace, employers that compete to hire employees have to provide appealing conditions of employment to attract and retain them. One such instance could be a competitive compensations package.

As for the influence of state laws, a company’s Conditions of employment must abide by federal and state requirements with regard to matters such as worker safety, access to healthcare, and non-discrimination policies. 


What is included in Conditions of employment?


Conditions of employment may include job-specific stipulations as well as company-specific conditions.

Examples of job-specific conditions of employment include:


  • The days and hours of employment
  • Status of whether the employee is exempt or non-exempt
  • Compensation
  • Job description
  • Non-compete clauses
  • Employee benefits


Job-specific conditions of employment are often negotiable, and job applicants with skills that are in high demand may arrange for more favourable terms of employment. 

Examples of company-specific conditions of employment include:


  • Dress code policies
  • Probationary period
  • Company holidays
  • Pay schedule
  • Leave policies
  • Performance review requirements
  • Discipline policies
  • Standard benefits information, such as health insurance and retirement plans
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