employee definition
What is an Employee? Find out. Right here.

Employee Definition

Understanding employee definition is one of the basic principles of human resources.  Understanding employee definition also mitigates the risks associated with treating a bona fide employee like an independent contractor or vendor.   

Employee Definition - the quick version

An employee is a person who does work for a company and has recognized duties and rights.  An employee is protected by various employment legislation. This provides an incentive to employers to treat an employee in an acceptable manner according to the courts. An employee can sue the employer if they feel they have not been treated according to the rules laid out by employment legislation.   

Employee Definition - The longer version

The definition of employee is an individual hired for a wage, salary, fee or payment to perform work for an employer. It's important to determine if that person working for your company is an employee.  It affects the answers to the following questions.  In each case, if the answer is yes, the individual is an employee. 

  • Is tax collected at source?
  • Does the individual benefit from substantial statutory or common law rights?
  • Can the individual sue the company for side stepping regulations outlined in employment law?
  • Is the company responsible for worker's compensation premiums and work accidents?
  • Is the individual paid by payroll vs accounts payable? 
  • Does the individual have a status? Full-time, part-time, temporary, regular, exempt, non-exempt? 
  • Is the company on the hook for the individual's quality of work and cost of errors or omissions?
  • Does the company control the manner in which work is performed? 
  • Does the company have to supply the tools required for the individual to perform their work?
  • ...Finally!  A straightforward and comprehensive HR toolkit that makes sense for small businesses...
    Dana Murray | President, Prospec | Seattle, WA
  • “…I finished my first draft of the whole manual yesterday; after only 3 weeks of having your product. It would have taken me months to do the same thing by myself. THANKS A LOT FOR A WONDERFUL TOOL!...”

    Jorge O. Aviles | Arrow Energy Ltd.
  • “…What a great product! I cannot emphasize enough how delighted I am with it…Your work is thorough, detailed, comprehensive, thought provoking, well laid out, easy to work with, professional, and great value. Thank you and compliments on a job very well done.”

    Grant Hodgins, B.Comm | CEO, Hodgins Auctioneers Inc.
  • "As a fresh start up with big growth plans, ConnectsUs products were the perfect tools for establishing our HR baseline. It's truly invaluable.”

    Bill Tam | CEO, EQO Communications
  •  "... covers all the bases and really do let us focus on fine-tuning an existing product to meet our needs instead of starting completely from scratch."

    Ed Anderson | President, Dyrand Systems
  • "Rather than wasting countless hours reinventing the wheel, a lot of the leg work is done for you. Worth checking out. A real help if you need to get HR best practices in place in a short amount of time."

    Martina Page | Human Resources, ARC’Teryx