21 June, 2022

Different Types Of Employees & Contingent Workers

by Adam
Different Types Of Employees

As the workforce keeps expanding, the term employee takes on new meanings. There seems to be a classification as to the different types of employees and the kind of roles each one plays in the labour market. The main classification of workers are given below. 

Who Is an Employee or a Worker?

An employee or worker is someone hired by a business or organization to perform a set of tasks for a payment, which is a salary in most cases. For most legal purposes, a person is considered an employee if the work performed can be controlled by the employer who keeps him to work. However, there are some additional conditions that determine whether a person is an employee, and those are as follows. 

-A salary or wage is paid out to the worker, and the person is on the payroll of the company. 

-The individual gets to enjoy benefits and perks offered by the employer. 

-There is a written contract between the worker and his employer. 

-There are certain employment rights and terms of wages guaranteed by law. 

Type Of Employees 

1. Full time employees

A full-time employee works 40 hours a week or more and is kept on a salary. Most organizations are required to provide health benefits and provident fund facilities to full-time workers. The rules regarding the hiring and firing of full-time workers are stricter than of part-time employees. 

2. Part-time employees

Part time employees are people who work less than 40 hours a week and are paid by the hour or by the days of attendance. A part-time employee is considered a bona fide employee, but they may not receive all the benefits that a full-time employee would receive. 

3. Seasonal employees

Individuals that are hired to perform duties that arise due to certain business seasons are classified as seasonal employees. This can be typically found in the textile industry where seasonal workers are hired when a festive season is at hand and there is a heightened demand for workers. Most types of seasonal employees are provided with benefits during the time that they are at work, which are discontinued afterwards. 

4. Temporary employees

Temporary employees are individuals who are employed on a temporary basis and often for a fixed duration like say, six months. It is also possible that workers might be hired for the duration of a project and terminated after the completion of the project. 

5. Leased employees

A leased employee is typically hired by staffing companies and leased out to another organization to complete the work at hand. The period of lease for most workers in such situations runs from a year and onwards. The salary and benefits are given by the staffing company while the person is working for a different organization. 

Thus, there seems a strict guideline to follow when it comes to considering a person as a worker or employee. Most countries around the world do regulate the conditions of the labour market and set times of work and leisure for the different categories of workers.

Related Article: Employee vs Employer: Know The Real Difference

What are contingent workers?

Individuals who are outsourced by a concern to perform duties on a non-employee basis but as a worker are called a contingent worker. These workers might work at the premises or in remote locations and are not considered as employees of the business. 

Most of the contingent workers are highly skilled people that offer their services to a concern on a freelance basis or as a consultant. They are also in high demand for the niche category that they operate in too. 

Types of Contingent Workers 

1. Contract Workers

They are bound to the employer through a written contract and the terms of the contract does decide the kind of benefits that the worker enjoys with the employer. 

2. Independent Contractors

These are workers sourced by a concern to perform a set of specialized tasks. It is possible that the independent contractor can turn out to be a permanent fixture at some companies and this is decided by the nature of the work requirement. 

3. Interns

The intern is usually working for an employer to gain experience primarily and is mostly paid a stipend. An internship is a learning time for recently passed out students to transition from academic work to employment. 

4. Consultant

A consultant is usually an expert in his field of work who offers professional advice in their area of expertise and negotiates terms independently with the business that he wants to be associated with. Often there is a written agreement between the worker and the employer. 

Conclusion

There are many different types of employees in the workforce. Each type has its own unique set of skills and abilities that contribute to the overall success of a business. It is important for businesses to identify the different types of employees and understand their role in the company. By doing so, businesses can create a productive and efficient work environment that maximizes employee productivity and satisfaction.