HR Glossary
Employment status

Employment status

Updated on:
August 22, 2022


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Table of Content

What is the employment status? 

When you hire a new employee, you should decide what type of employment status you are hiring them under.

The employment status of an individual refers to an employee or independent contractor's relationship with their employer.

What are the types of employment status? 

  • Worker 
  • Employee
  • Self-employed

It is your responsibility as an employer to decide what type of employment status to hire new employees under.

Why are employment status necessary? 

There are many reasons why knowing someone's employment status is important. For example, employers need to know if someone is employed so they can offer them a job. Additionally, government agencies need to know if someone is employed so they can provide them with benefits, like unemployment insurance. Finally, landlords need to know if someone is employed so they can determine if they can afford to rent an apartment. Knowing someone's employment status is important for many reasons.