What is employment status?

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:

  • Full time: Full-time employment status makes an employee eligible for employment benefits and bonuses.
  • Part time: Most part-time employees do not receive employment benefits but are entitled to hourly wages according to labor law regulations.
  • Contractual: Contractual employees have the freedom to negotiate the terms of their contract which can include pay and benefits. This includes freelancers and seasonal staff.

Employment Status- FAQs

What is employment status on the application form?

Employment status on an application form refers to an individual’s present state of employment.

How is employment status determined?

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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