Employment Status
Employment status establishes the legal status of the working relationship of a person with an organization, whether as a full-time, part-time, contracted, or freelance employee. It defines the entitlements, perks, tax liability, and employment stability. The knowledge of employment status is important in ensuring that both the employers and employees comply with labor laws and that they treat each other in a fair manner. The HR departments hinge on correct employment status classification in order to plan payroll, benefits, and workforce management. Organizational reputational risks, fines, and disagreements may result due to mis-classification.
Examples
1) HR updated the employment status of interns from temporary to full-time.
2) Workers must confirm their employment status for tax reporting purposes.
3) A change in employment status can affect eligibility for company benefits.
Synonyms
Job classification
Work status
Worker category
Employment type
Job status
