Employment status describes the relationship between a worker and their employer. This could be full-time or part-time employment, independent contract, and so on.
Employment status refers to the working relationship between an employer and an employee. It determines the rights and protections workers have while working for someone. Let's break down the main categories.
A worker provides services but isn't an official employee. They might work under contracts for specific clients, like agency employees, freelancers, or gig economy workers. However, it’s up to them to handle their own taxes and benefits.
An employee has a formal contract with an employer. In this relationship, the employee is subordinate to the employer. This means they must follow their direction; they enjoy more rights, like minimum notice periods, paid holidays, and benefits. Employers deduct taxes from their pay.
Self-employed individuals work for themselves and manage their businesses. They're not employees or workers but entrepreneurs or sole traders. They handle their taxes and aren't protected by employment law.
Workers are often further categorized into the following:
Intern/Apprentice: They gain practical experience or learn a trade, sometimes getting paid.
Understanding employment status is essential for both employers and workers, as it determines rights, benefits, and legal responsibilities.
