Employment based on religion/participation in religious observance
Example 1
A school wants to employ a teacher to teach the Catholic faith, so may seek an exemption to employ one who believes in Catholicism or belongs to the Roman Catholic Church.
Example 2
The Anglican Church can seek exemption to employ only Anglicans as ministers, priests or bishops, just as a Buddhist Temple is entitled to engage only adherents of Buddhism as Monks, and similarly with all religious institutions.