Employee
5 October 2021
An individual employed under contract, usually administered by a wider organisation or business. The role of an employee can vary enormously between entities. Employees are not always synonymous with ‘workers’, which can refer to anyone paid to complete a task, even on a freelance basis. Employees are ordinarily held under contract for an extended period, often with no definitive end date.
There are three decisive factors used to define an employee. These are:
- Personal Service: an employee must provide their services or complete their services personally, without the aid of agents or substitutes
- Control: the employee must be able to exert a significant level of control over the employee, such as deciding working hours and reviewing workplace performance
- Mutuality of Obligation: both the employee and employer must provide something to one another. The employee must provide services, the employer must provide payment, as agreed upon by the initial contract
Unlike the more general term ‘workers’, employees cannot decline work if they do not wish to complete it. Per the original contractual agreement, employees must perform the role their employers request to the fullest extent.