PAYMENTS

I.                  INTRODUCTION

A payment is the transfer of wealth from one party, such as a person or a company, to another party. Payment usually made in exchange for the provisions of goods, service or both, or to fulfill a legal obligations. The simplest and oldest form of payments is barter, the exchange of one good or service for another. In the modern world, commons means of payment by an individual include money, cheque, debit, credit or bank transfer and in trade such payments as frequently preceded by an invoice or result in a receipt. However there are no arbitrary limits on the form a payment can take and thus in complex transactions between businesses, payments may take form of stock or other more complicated arrangements. In law, the payer is the party making a payment while the payee is the party receiving the payments.

Payment system

A payment system is a system for the transfer of money. What makes it a "system" is that it employs cash-substitutes; traditional payment systems are negotiable instruments such as drafts (e.g., checks), credit cards and other charge cards, documentary credit (such as L/C) and electronic funds transfers. Some payment systems include credit mechanisms, but that is essentially a different aspect of payment. Payment systems are used in lieu of tendering cash in domestic and international transactions and consist of a major service provided by banks and other financial institutions. In the US, they are regulated by different state statutes (UCC) and Federal regulations.

Additional forms of payment systems (including physical or electronic infrastructure and associated procedures and protocols) are used to settle financial transactions in automated teller machine networks, stored-value card networks, bond markets, currency markets, and futures, derivatives, or options markets, or to transfer funds between financial institutions. Due to the backing of modern fiat currencies with government bonds, payment systems are a core part of modern monetary systems.

An e-commerce payment system facilitates the acceptance of electronic payment for online transactions. Also known as a sample of Electronic Data Interchange (EDI), e-commerce payment systems have become increasingly popular due to the widespread use of the internet-based shopping and banking. In the early years of B2C transactions, many consumers were apprehensive of using their credit and debit cards over the internet because of the perceived increased risk of fraud. Recent research shows that 90% of people in the United Kingdom still do not shop online because they do not trust online payment systems. However, 54% do believe that it is safe to shop online which is an increase from 26% in 2006.

There are numerous different payments systems available for online merchants. These include the traditional credit, debit and charge card but also new technologies such as digital wallets, e-cash, mobile payment and e-checks. Another form of payment system is allowing a 3rd party to complete the online transaction for you. These companies are called Payment Service Providers (PSP), a good example is Paypal or WorldPay.

Payments Methods

 There are two types of payments method:

·         Exchanging

Exchanging is to change coin, money and banknote in terms of the price.

·         Provisioning

Provisioning is to transfer money from one account to another party. In this method, the third party must involve.

Payment methods for buyers :

ü  PayPal

PayPal is the preferred payment method for most eBay buyers and sellers. PayPal lets you send payments quickly and securely online using a credit card or bank account.

ü  Bill Me Later

A PayPal company, is a fast, convenient, and secure payment method that lets you buy now and pay later.

ü  Credit card or debit card to a seller with an Internet merchant account

ü  Moneybookers

Moneybookers lets you send payments quickly and securely online using a credit card or bank account.

ü  Paymate

Paymate lets you send payments quickly and securely online using a credit card or bank account.

ü  ProPay

ProPay lets sellers accept credit cards without an Internet merchant account.

ü  Pay upon pickup

Along with other allowed payment methods, sellers can also offer this option.

ü  Escrow

This is recommended for high-priced items.

ü  Other payment methods

Checks, money orders, and bank wire transfers aren't allowed for most eBay purchases.

But sellers can offer these payment methods for certain items in some categories, including Motors, Capital and Business Equipment, Real Estate, and Adult Only.

Sellers can't require you to pay using payment methods that aren't allowed on eBay. If your seller wants to change payment methods after the listing has ended, you can insist on paying with one of the methods specified in the seller's original listing.

Parties in Payments

Payments is maybe classified by the number of parties involve to consummate a transaction. For example credit card transaction the United States required a minimum of four parties (purchaser, seller, issuing bank and the acquiring bank. A cash payment required a minimum of three parties . A barter payments requires a minimum of two parties, the purchaser and seller.

Payments Provider

The infrastructure and electronic clearing methods are formed by the payments provider visa and master card. A payment service provider (PSP) offers merchants online services for accepting electronic payments by a variety of payment methods including credit card, bank-based payments such as direct debit, bank transfer, and real-time bank transfer based on online banking. Some PSPs provide unique services to process other next generation methods (Payment systems) including cash payments, wallets such as PayPal, prepaid cards or vouchers, and even paper or e-check processing. Typically, a PSP can connect to multiple acquiring banks, card, and payment networks. In many cases, the PSP will fully manage these technical connections, relationships with the external network, and bank accounts. This makes the merchant less dependent on financial institutions and free from the task of establishing these connections directly - especially when operating internationally.

Furthermore, a full service PSP can offer risk management services for card and bank based payments, transaction payment matching, reporting, fund remittance and fraud protection in addition to multi-currency functionality and services.

PSP fees are typically levied in one of two ways: as a percentage of each transaction or a low fixed cost per transaction.

Global Payments Market

In 2005, an estimated $40 trillion globally passed through same part of payments systems. Roughly, $12 trillion of that was transacted through  various credits card, mostly the 21,000 members bank of visa and master card. 

II.               EMPLOYER ASSOCIATION An employer association is an organisation that represents a group of employers who share similar interests or areas of trade and aims to promote and represent their opinions and concerns. Employer associations often help negotiate awards. Employer An employer is a person or institution that hires employees or workers. There are federal rules which determine whether an employee can be classified as exempt or non exempt from over time. Once an employee has been properly classified as exempt or not exempt, an Employer may offer hourly wages or a salary. It is important to note that "salary" does not always mean "exempt from overtime requirements." A properly classified, as exempt, salaried employee is typically not paid more for more hours worked and employers may not deduct wages for items such as lack of work or because the employee worked less hours due to no fault of their own. Employees, that are not exempt, must be paid overtime. They are most often referred to as "hourly employees." The federal rule for overtime for all hourly employees is: Hourly employees that work more than 40 hours in a set and predetermined 24 hour and 7 consecutive day period must be paid 1.5 times their regular rate of pay for all hours over 40. Under no circumstance may either the employer or employee waive the over time requirement. Additionally, many states have their own individual requirements about when and how over time is to be paid. In general, when there are both federal and state laws that apply to the same employment issue, such as Over Time, the law that treats the employee the best or with most favor, is the law that governs. Most employment in the U.S is what is known at AT Will. One state, Montana, is not At Will. For all other states, this means that either the employer or the employee may end the relationship "At Will" and with no notice. In the United States there are a growing body of rules, regulations, and laws which affect the AT Will relationship. Therefore, At Will for employers also means that they must not terminate or make an adverse employment decision based on an "unlawful reason." Employers include individuals hiring a babysitter to governments and businesses which may hire many thousands of employees. In most western societies, governments are the largest single employers but most of the work force is employed in small and medium businesses in the private sector. Although employees may contribute to an enterprise, the employer maintains control over the productive base of land and capital, and is the entity named in contracts. The employer typically maintains ownership of intellectual property created by an employee within the scope of employment and as a function thereof. These inventions or creations become the property of the employer based on a concept known as "works for hire". An employers’ relative level of power over employees is dependent upon numerous factors; the most influential being the nature of the employment relationship. The relationship employers share with employees is affected by three significant factors – interests, control and motivation. It is up to employers to effectively manage and balance these factors to ensure a harmonious and productive working relationship. Interests can be best described as monetary constraints and economic pressures placed on organizations in their pursuit of profits. It covers facets such as labour productivity, wages and the effect of financial markets on businesses.

Union membership

What is the role of unions

Unions are organisations set up by employees to help them at work. The primary purpose of a union is to maintain and advance the wage rates and working conditions of members, and to defend and promote a fair and safe working environment. Unions also inform and educate members and the community about the issues workers confront.

Unions are important because it is unlikely workers would win these kind of battles alone. There are more than 50 unions in Australia representing all different industries.

How can unions help you?

Unions can help you in the following ways:

Industrial representation

If you're having a problem at work that isn't resolved, a union will represent you in the Australian Industrial Relations Tribunal (AIRC) or in the NSW Industrial Relations Commission (IRC), where people from outside the workplace listen to both sides of the story and then make a decision.

Take action

If you are unhappy with your working conditions, unions can help you organise a legal strike.

Occupational health & safety

Unions provide advice and support to elected Health and Safety Representatives to make sure your workplace is safe. Unions also provide expert guidance and legal assistance on all workers' compensation matters under state and federal legislation if you are injured at work.

Rights

Unions will help you ensure your rights at work are protected, including on issues such as harassment, discrimination, equal opportunity and equal pay.

Proper pay and entitlements

Unions will help you to get paid the right salary as well as ensuring you get your overtime pay, back pay, holiday pay etc.

Advice and assistance in workplace bargaining

Unions can work with you and your employer to form an enterprise agreement or contract.

Talk to your employer or Unions NSW

Unions can help by dealing directly with your employer.

An employers' organization, employers' association or employers' federation is an association of employers. A trade union, which organizes employees is the opposite of an employers' organization. The role and position of an employers' organization differs from country to country, dependent on the economic system of a country.

In countries with a pluralist or anglo-saxon economic system (such as the United Kingdom and the United States), where there is no institutionalized cooperation between employers' organizations, trade unions and government, an employers' organization is an interest group or advocacy group that through lobbying tries to influence government policy. In these countries, employers' organizations tend to be weak, with many of their functions taken over by industry trade groups, which are basically public relations organizations.

In countries with a social market economy, such as Austria, Sweden and the Netherlands, the employers' organizations are part of a system of institutionalized deliberation, together with government and the trade unions. In tri-partite bargaining the so-called social partners strike agreements on issues like price levels, wage increases, tax rates and pension entitlements. In these countries collective bargaining is often done on a national level not between one corporation and one union, but national employers' organizations and national trade unions.

Globalization and employment relations

The balance of economic efficiency and social equity is the ultimate debate in the field of employment relations. By meeting the needs of the employer; generating profits to establish and maintain economic efficiency; whilst maintaining a balance with the employee and creating social equity that benefits the worker so that he/she can fund and enjoy healthy living; proves to be a continuous revolving issue in westernized societies.

Globalization has effected these issues by creating certain economic factors that disallow or allow various employment issues. Economist Edward Lee (1996) studies the effects of globalization and summarizes the four major points of concern that affect employment relations:

1. International competition, from the newly industrialized countries, will cause unemployment growth and increased wage disparity for unskilled workers in industrialized countries. Imports from low-wage countries exert pressure on the manufacturing sector in industrialized countries and foreign direct investment (FDI) is attracted away from the industrialized nations, towards low-waged countries.
2. Economic liberalization will result in unemployment and wage inequality in developing countries. This happens as job losses in un-competitive industries outstrip job opportunities in new industries.
3. Workers will be forced to accept worsening wages and conditions, as a global labour market results in a “race to the bottom”. Increased international competition creates a pressure to reduce the wages and conditions of workers.
4. Globalization reduces the autonomy of the nation state. Capital is increasingly mobile and the ability of the state to regulate economic activity is reduced.

in industrialized countries an average of almost 70 per cent of workers are employed in the service sector, most of which consists of non-tradable activities. As a result, workers are forced to become more skilled and develop sought after trades, or find other means of survival. Ultimately this is a result of changes and trends of employment, an evolving workforce, and globalization that is represented by a more skilled and increasing highly diverse labour force, that are growing in non standard forms of employment

Models of the employment relationship

Scholars conceptualize the employment relationship in various ways. A key assumption is the extent to which the employment relationship necessarily includes conflicts of interests between employers and employees, and the form of such conflicts.^[7] In economic theorizing, the labor market mediates all such conflicts such that employers and employees who enter into an employment relationship are assumed to find this arrangement in their own self-interest. In human resource management theorizing, employers and employees are assumed to have shared interests (or a unity of interests, hence the label “unitarism”). Any conflicts that exist are seen as a manifestation of poor human resource management policies or interpersonal clashes such as personality conflicts, both of which can and should be managed away. From the perspective of pluralist industrial relations, the employment relationship is characterized by a plurality of stakeholders with legitimate interests (hence the label “pluralism), and some conflicts of interests are seen as inherent in the employment relationship (e.g., wages v. profits). Lastly, the critical paradigm emphasizes antagonistic conflicts of interests between various groups (e.g., the competing capitalist and working classes in a Marxist framework) that are part of a deeper social conflict of unequal power relations. As a result, there are four common models of employment:^[8]

1. Mainstream economics: employment is seen as a mutually advantageous transaction in a free market between self-interested legal and economic equals
2. Human resource management (unitarism): employment is a long-term partnership of employees and employers with common interests
3. Pluralist industrial relations: employment is a bargained exchange between stakeholders with some common and some competing economic interests and unequal bargaining power due to imperfect labor markets
4. Critical industrial relations: employment is an unequal power relation between competing groups that is embedded in and inseparable from systemic inequalities throughout the socio-politico-economic system.

These models are important because they help reveal why individuals hold differing perspectives on human resource management policies, labor unions, and employment regulation.^[9] For example, human resource management policies are seen as dictated by the market in the first view, as essential mechanisms for aligning the interests of employees and employers and thereby creating profitable companies in the second view, as insufficient for looking out for workers’ interests in the third view, and as manipulative managerial tools for shaping the ideology and structure of the workplace in the fourth view.

 Work as an economic component

Capitalism demarcates "work" as something that is supplied by "owners" and demanded by "non owners" to a great degree. In this viewpoint, the risk associated with owning and operating a business is seen as fairly rewarding the risk-taker with the lion's share of profits, even though in reality the lion's share of the "work" to provide the good or service is provided at the worker level. Unsafe and unfair work conditions and a lack of profit-share are among the key factors that contributed to the establishment of unions.

Unions The purpose of a union is a written contract between the employer and the employee, specifying the rights and duties of each.

Prior to the existence of unions, very few labor contracts existed, allowing the employer to re-define the job any time, occasionally to the detriment of the employee.

In the purest sense, a union leverages the collective strength of a group of workers to force owners and management to increase their compensation.

Value of labor

The value of work is also informed by the economic system in which it functions.

Capitalism allows, or purports to allow, the marketplace to determine the value of a good or service based on demand, rather than impose a value on a good or service. In a communistic environment, the state determines the value a job may have, and may also open or close avenues to those jobs, creating less of a sense of freedom as to who may occupy those jobs.

Socio-psychological concepts of freedom, self-actualization, motivation and aspiration are thus tested in a society where a person is not taught "you can do whatever you want", or "you don't have to work hard to get by okay". The capitalist system suggests that success is unlimited or directly proportional to how much an individual wants to work at it, while opponents of communism suggest that imposing value takes away the motivation for someone to be better at their job than the next guy who isn't working as hard but the value in what they do is fixed regardless of performance.

While the debate rages, and different countries subscribe to and build their society on different approaches, clearly "work" plays a great role in the definition of a society and the culture of government that will be in place to administer its functioning.

Alternatives

The concommitant employment practices are often grouped under the heading Workplace democracy, and are characterised by high levels of employee engagement; principles-based rather than rules-based work relations; and a problem-solving approach to workplace conflict. In this model management (including its employment function) effectively becomes a domain shared between managers and staff. The resurgent New Unionism movement promotes this employment model, and seeks to extend it.

When an individual entirely owns the business for which he or she labours, this is known as self-employment. Self-employment often leads to incorporation. Incorporation offers certain protections of one's personal assets. Laws of incorporation vary from state to state with Delaware having the most incorporated businesses of any state in the U.S.

Workers who are not paid wages, such as volunteers, are generally not considered as being employed. One exception to this is an internship, an employment situation in which the worker receives training or experience (and possibly college credit) as the chief form of compensation.

Those who work under obligation for the purpose of fulfilling a debt, such as an indentured servant, or as property of the person or entity they work for, such as a slave, do not receive pay for their services and are not considered employed. Some historians suggest that slavery is older than employment, but both arrangements have existed for all recorded history.

III.                Minimum Wage 2010 in various provinces

1.      South Sulawesi provincial minimum wage in 2010 was Rp 1.000.000, - (DECISION OF THE GOVERNOR OF SOUTH SULAWESI PROVINCE NUMBER 3988/XII/Tahun 2009)

2. Maluku provincial minimum wage 2010 is see appendix MALUKU PROVINCIAL GOVERNOR DECISION NUMBER 396 OF 2009

3. Provincial Minimum Wage (UMP), Central Sulawesi, 2010 amounted to Rp.777.500, - (Seven Hundred Seventy Seven Thousand Five Hundred Rupiah) per month and for the Daily Minimum Wage Rp. 31 100, - (Thirty One Thousand One hundred Rupiah) per day. CENTRAL SULAWESI GOVERNOR DECISION NUMBER 561/506/DISNAKERTRANS/G.ST/2009.

4. Provincial Minimum Wage (UMP) of Bengkulu in 2010 amounted to Rp. 780,000, - (Seven hundred and eighty thousand dollars). DECISION NUMBER BENGKULU PROVINCIAL GOVERNOR IN 2010 M.300.XIV

5. Minimum Wage Tangerang District in Banten Province and South Tangerang city in 2010 amounted to USD 1,117,245.00 (One Million Seven Hundred Thousand Two Hundred Forty-Five rupiah) per month for workers with years of service under one year. GOVERNOR BANTEN 561/Kep.587-Huk/2009 DECISION NUMBER.

6. Minimum Wage Tangerang in Banten Province in 2010 amounted to USD 1,118,009.00 (One Million Nine Hundred Eighteen Thousand rupiah) per month for workers with years of service under one year. GOVERNOR DECISION NUMBER 561/Kep.588-Huk/2009 BANTEN Provincial Minimum Wage (UMP) of North Sumatra 2010 amounted to Rp 965,000, - (Nine Hundred Sixty Thousand Rupiah / month). NORTH SUMATRA PROVINCE GOVERNOR DECISION NUMBER 561/4894/K/TAHUN 2009.

7. Provincial Minimum Wage (UMP), Nusa Tenggara Timur 2010 amounted to Rp. 800.000, - (Eight hundred thousand rupiah) per month; DECISION EAST PROVINCIAL GOVERNOR
NUMBER 347/KEP/HK/2009

8. The minimum wage County / City in Bali 2010 is look at the attachment BALI PROVINCE GOVERNOR REGULATION
NUMBER 45 OF 2009

9. Provincial Minimum Wage (UMP) in 2010 in Riau Islands province was Rp. 925 000, - (Nine Hundred Twenty-five thousand rupiah) per month. PROVINCIAL GOVERNORS ISLAND DECISION NUMBER 442 OF 2009 RIAU.
10. UMSP Year 2010 set forth in the Building and Public Works per day, Chemicals, Energy and Mining, Metals, Electronics and Machinery, Automotive, Insurance and Banking, Food and Beverage, Pharmaceutical and Medical, Textile, Clothing and Leather and Tourism per month as listed in this Annex. REGULATION OF THE GOVERNOR PROVINCE SPECIAL DISTRICT CAPITAL OF JAKARTA NUMBER 1 IN 2010.

11. Setting the minimum wage at 26 (twenty six) districts and municipalities in West Java in 2010 as listed in the Appendix, REGULATION OF THE GOVERNOR OF WEST JAVA PROVINCE
NUMBER 561/Kep.1665-Bangsos/2009

12. The amount of Provincial Minimum Wage (UMP), Lampung, as referred to in Dictum One is Rp 767,500 (Seven hundred and sixty-seven thousand five hundred rupiah) per month. PROVINCIAL GOVERNOR LAMPUNG DECISION NUMBER G/681/III.05/HK/2009.

13. Setting the minimum wage Lebak Banten province in 2010 amounted to USD $ 959,000.00 (Nine Hundred Fifty Nine Thousand Five Hundred Rupiah) per month for workers with years of service under one year. DECISION OF THE GOVERNOR BANTEN
NUMBER 561/Kep.566-Huk/2009.

14. Setting the Minimum Wage Cilegon, Banten province in 2010 amounted to USD 1.174 million, - (One Million One Hundred Seventy Four Thousand rupiah) per month for workers with years of service under one year. GOVERNOR BANTEN 561/Kep.565-Huk/2009 DECISION NUMBER.

15. Wages as referred to in Dictum One of Rp 965,000, - (Nine Hundred Sixty Thousand Rupiah / month). DECISION OF THE GOVERNOR
NORTH SUMATRA PROVINCE NUMBER 561/4894/K/TAHUN 2009.

16. Minimum wage in the province of Gorontalo province was Rp 710,000, - (seven hundred and ten thousand rupiah) per month. GOVERNOR GORONTALO 295/12/X/2009 DECISION NUMBER.

17. Minimum Wage Banten province in 2010 amounted to USD $ 955,300.00 (Nine Hundred Fifty Five Thousand Three Hundred Rupiah) per month for workers under the working period of one year. GOVERNOR BANTEN 561/Kep.506-Huk/2009 DECISION NUMBER.


18. Provincial minimum wage and minimum wage Sectoral Southeast Sulawesi province in 2010 which applies throughout the District Southeast seSulawesi who does not have minimum wage District is Rp 860,000, -. SOUTHEAST SULAWESI GOVERNOR REGULATION NUMBER 67 OF 2009.
19. Minimum Wage provinces (UMP) and the minimum wage Sectoral Province (UMSP) in 2010, in Central Kalimantan province, amounting to USD 986 590, -. REGULATION OF THE GOVERNOR CENTRAL KALIMANTAN NUMBER 29 OF 2009.


20. East Kalimantan Province Minimum Wage YEAR 2010 amounted to Rp. 1,002,000, - (one million two thousand dollars) a month. EAST KALIMANTAN PROVINCE GOVERNOR DECISION NUMBER 561/K.551/2009.


21. Minimum Wage Bangka Belitung Islands Province in 2010 amounted to Rp. 910,000.00 (Nine hundred and ten thousand rupiah) per month with a standard 7 (seven) hours a day and 40 (forty) hours of work per week. GOVERNOR DECISION NUMBER 88.44/533/TK.T/2009 Bangka Belitung Islands.


22. Minimum Wages in South Sumatra Province in 2010 amounted to USD 927 825 (nine hundred twenty seven thousand eight hundred twenty five dollars) per month with a standard 7 (seven) working hours a day and or 40 (forty) hours of work per week. SOUTH SUMATRA PROVINCE GOVERNOR DECISION NUMBER 740/KPTS/DISNAKERTRANS/2009.


23. Minimum Wage Riau province in 2010 amounted to Rp. 1.016 million, -/month (one million, sixteen thousand dollars); RIAU PROVINCIAL GOVERNOR REGULATION NUMBER 94 OF 2009.

24. Minimum Wage of Yogyakarta Special Region in 2010 amounted to USD 745 694 (Seven hundred and forty-five thousand six hundred ninety four dollars). YOGYAKARTA SPECIAL REGION GOVERNOR DECISION NUMBER 217/KEP/2009.


25. Minimum Wage in Aceh Province set at Rp. 1.3 million, - (one million three hundred thousand rupiah) per month. ACEH GOVERNOR REGULATION NUMBER 132 YEAR 2009.

26. Province (UMP) in South Kalimantan in 2010 as referred to in this FIRST dictum is Rp. 1,024,500.00 (one million twenty-four thousand five hundred rupiah). SOUTH KALIMANTAN PROVINCE GOVERNOR DECISION NUMBER 188.44/0487/KUM/2009.

27. Minimum Wage Bali Rp. 829 316, - (Eight hundred and twenty-nine thousand three hundred sixteen dollars) per month for single workers with years of service 0 (zero) to 1 (one) year, including workers who are still on probation. BALI PROVINCE GOVERNOR REGULATION NUMBER 44 OF 2009.

28. Establish Provincial Minimum Wage (UMP) and West Papua Provincial Sectoral minimum wage (UMSP) West Papua in 2010 with the following details:
A. Provincial Minimum Wage (UMP) West Papua Rp. 1.21 million, - per month.
B. Provincial Sectoral Minimum Wage (UMSP) West Papuan Sub Sectors:
1. Oil And Natural Gas, Rp. 1,328,000, - per month;
2. Gold and Copper, Rp. 1,328,000, - per month;
3. Construction services, amounting to Rp. 1,328,000, - per month;
WEST PAPUA PROVINCE GOVERNOR DECISION NUMBER 187 OF 2009.

29. Provincial Minimum Wage (UMP) in Jambi in 2010 amounted to Rp. 900.000, - (nine hundred thousand rupiah) per month for a period of 7 hours a day and 40-hour workweek. PROVINCIAL GOVERNOR JAMBI DECISION NUMBER 458/Kep.Gub/DISOSNAKERTRANS/2009