The legal and contractual relationship between an employer and employee is known as employment status. An employee’s employment status affects their eligibility for benefits such as unemployment insurance, tax data collection obligations, rules regarding taxation of fringe benefits provided by the employer, and whether employees are covered under labor laws, wage and hour regulations, and civil rights legislation.
In certain cases, employees can possess multiple employment statuses simultaneously. This is dependent on the type of employment status they are employed under by employing organizations.
Types of employment status
Employment status can be following types:
Employment status on an application form refers to an individual’s present state of employment.
Employment status is outlined in an employment contract. Factors like work hours, employer responsibilities and employee benefits are also instrumental in determining employment status.
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