A person who is employed directly by an employer under a service agreement or a labor-only contract is referred to as a worker.
This indicates that the person does some or all of the job for the employer. A worker is a person who regularly does work under the terms of an employment contract.
The two terms are frequently used interchangeably. There are some circumstances, though, where we can only use one term. The legal distinction between an employee and a worker will be important in deciding rights and obligations in the workplace, not least since many employment rights derive from a person possessing "employment" status, with workers having fewer rights than employees.
Despite the fact that all employees are also workers, employees have extra-statutory employment rights that do not hold true for workers who are not employees. All legislative employment rights are, in fact, solely granted to employees.
A person who is paid to accomplish a specific goal, provides the necessary tools of the trade or plant and equipment, and is in charge of rectifying any problems or defects is not a worker.
A person who works for an employer but lives in the employer's house and is a family member of the employer is not considered a worker. However, if the employer notifies the licensed insurer (who provides the employer with workers' compensation insurance) of the nature of the employee's employment and the estimated salary of the employee at the beginning of the employment relationship and at the time the insurance is renewed, the employee will be considered a worker.
A worker is often someone having a contract or agreement for employment or services that have a more relaxed or less formal arrangement, such as fluctuating hours.
Employer rights are quite broad for employees. Employee status often applies when the task at hand must be completed by the individual, it is regular and cannot be denied, and the employer has control over how it is carried out.