Employee Type

What is an Employee Type?

The term "employee type" describes the various categories of workers that a company may employ. The rules and requirements set forth by the law for each kind of employee must be taken into account by organizations.

Types of Employee

Full-time employees

Employees that are employed full-time often put in 40 hours per week and are entitled to perks. Healthcare coverage for full-time employees and dependents is a requirement for employers with 50 or more full-time workers.

Part-time employees

Part-time employees may not be eligible for benefits since they work fewer than 40 hours per week. Instead of receiving a yearly income, they are frequently compensated hourly.

Temporary employees

Companies engage temporary workers on a temporary basis, typically for a predetermined amount of time or until a particular project is finished. Benefits are often ineligible for temporary workers. Through temporary staffing firms, many businesses hire temporary workers.

Independent contractors

These workers are obligated by their employment contracts to offer certain goods or services to private individuals, businesses, or corporations. They must perform their duties in accordance with the demands of their employer.

Additionally, independent contractors are in charge of their own perks and materials. Usually, these qualify as tax deductions.

Seasonal employees

Employers use seasonal workers to cover peak times like the summer or the holidays. Seasonal workers are entitled to Social Security and unemployment benefits as they are not regarded as regular employees.

Leased employees

Staffing firms engage leased workers and lease them out to other businesses to carry out particular tasks, typically for a year or longer. Benefits are provided to lease employees by their staffing agencies, not by the leasing businesses.

At-will employees

At-Will Workers The majority of workers in the US are classified as at-will workers. Except in the state of Montana, at-will employees are subject to immediate termination for any reason without cause or notice.

At-will workers also have rights of their own, such as the right to leave their employer's employ at any time and join a strike.

Interns

Interns may work full- or part-time and are supervised by higher-level management. Although there are federal restrictions governing who is eligible for an unpaid internship, and some states have extra requirements, internships can be paid or unpaid.

Conclusion

Every position and individual has different requirements. Knowing the different employee kinds can be useful when hiring for a new position so you can make sure you're hiring people under a status that best matches them, their team, and the needs of the organization. Additionally, having this knowledge would enable HR professionals to manage and compensate employees in accordance with the law.