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In the context of the labor market, an implicit contract is an employment agreement between an employer and an employee that specifies how much labor is supplied by the worker and how much wage is paid by the employer under different circumstances in the future.
Definition of wage rate. the amount of base wage paid to a worker per unit of time (as per hour or day) or per unit of output if on piecework.
Explained simply, wage rates are based on the amount produced or the number of hours worked. Sales staff, for example, are given a commission based on the number of sales they make. Conversely, hourly employees are paid a certain amount for each hour they spend at work.
Real wages show the value of wages adjusted for inflation. Real wages are a guide to how living standards have changed. However, if wages increase by 2%, and we have an inflation rate of 3%, your real wages is -1%. Prices have risen faster than wages, meaning you are worse off.
Technology which affects the output of a unit of labor. Changes in the price of the output which affect the value of the unit of labor. Changes in the price of labor relative to other factors of production.
Wage rate. A standard amount of pay given for work performed. Traditional theory of wage determination. The theory that states the supply and demand for a worker's skills and services determine the wage or salary.
If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatory (i.e., based on the employee's race, gender, religion, and/or age). To be legal, a person's earnings after the pay cut must also be at least minimum wage.
If your hours or pay have been cut, you may still be eligible for partial unemployment compensation. However, most of what you earn will be subtracted from your benefit amount. Unemployment benefits are available to employees who are out of work temporarily, through no fault of their own.
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