What is an employee?

Definition of employee

An employee is someone who works for a business under a contract of employment.

A contract of employment will lay out important information such as how much the employee will get paid (his/her 'salary' or 'wages'), what hours he/she is expected to work, how many days a year he/she will be given as paid holiday, what he/she will be paid during periods of sickness, and how much notice will be given to end the employment.

Not everyone who works for a business will be an employee, for example a business may hire a freelancer or subcontractor instead. Typically, a freelancer or subcontractor will work under a contract for services, which is less restrictive than a contract of employment and carries fewer rights; for example, a freelancer or subcontractor is not normally entitled to be paid during periods of holiday or sickness.

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