Multiplier Logo
Loading Animation Image

Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

Search Icon
# A B C D E F G H I J L M N O P R S T U V W X Y Z

Employee

What is an Employee?

An employee is an individual who is hired by a business or organization to perform specific duties in exchange for compensation, typically in the form of a salary or wages. Employees work under the direction and control of their employer, which distinguishes them from contractors or freelancers who may operate more independently.

Roles and Responsibilities

Employees are integral to the operations of any business, responsible for carrying out the tasks and functions that contribute to the organization’s goals. Their specific roles can vary widely depending on the industry and job title but generally include duties assigned by their employer, adherence to workplace policies, and participation in required training and development activities.

Legal Status and Rights

The legal status of an employee carries certain statutory rights and protections that do not typically apply to independent contractors. These include the right to minimum wage, overtime pay, unemployment benefits, and workplace safety. Employees are also often eligible for benefits such as health insurance, retirement plans, and paid leave. The classification of an individual as an employee versus a contractor is crucial for both tax and legal purposes, and misclassification can lead to significant legal consequences for businesses.

Employment Relationship

The relationship between an employer and an employee is governed by an employment contract, whether implicit or explicit. This contract outlines the terms of employment, including job duties, compensation, and termination procedures. It is essential for maintaining clear expectations and a mutual understanding of responsibilities between the employer and the employee.

Understanding the role of an employee within an organization is crucial for both management and the workforce. Recognizing the responsibilities and legal rights of employees can help ensure a productive, fair, and legally compliant workplace.

Ready to take the leap? Choose Multiplier as your EOR partner

Gain fresh perspectives

Take a look at our new blogs and e-books

how-companies-are-hiring-in-spite-of-the-talent-crunch

How companies are hiring in spite of the talent crunch

Read more

Mp More Link Arrow Right
making-work-work-embracing-globalization-and-innovation-in-2024

Making work work: Embracing globalization and innovation in 2024

Read more

Mp More Link Arrow Right
multiplier-named-leader-in-the-iec-group-global-eor-study-2024

Multiplier named Industry Leader and IEC Star in the 2024 IEC Global EOR Study

Read more

Mp More Link Arrow Right
Footer 24x5 New Img2x

An all-in-one international employment platform