The HR Dictionary

Employment Status

The rights and employment protections that an employee is entitled to at work, as well as the duties that an employer owes to that employee, are determined by their employment status. The type of work status that an organization is hiring under is the decision of the management. Commonly there are three types of employment status as: 

  • Worker - Any individual who works for another person or an organization, whether through an employment contract or another sort of agreement, but who is not self-employed, falls under the broader category of worker. Casual employees, employees from agencies, and some freelancers may fall into this category. However their exact job status will be determined by the contract's provisions.
  • Employee - An employee is a person who performs work for another person or an organization in accordance with an employment contract. A written, oral, or implicit employment contract is all possible. However, business partners aren't often employed; rather, they run profitable businesses, which are wholly unrelated to an employment connection. 
  • Self-employed - These individuals are engaged in their own businesses. There can be contracts involved based on the size of the business.