What is an Employee?
An employee is a person who works for an organization or a
company on a part-time or full-time basis and receives compensation for the
services rendered in form of a salary. However, not every individual who offers
his or her services to an organization or company gets compensation for the
rendered services can be considered an employee.
An employee is hired for a specific job or just to provide labor
and does his/her work in the service of another entity, mostly the employer.
The main difference between an employee and a contractor is that the employer
has control over the activities of the employee, but the contractor does his or
her work independently. The employee has a specified salary or wage and is
bound by an employment contract, whether written, express or implied. The
organization which has hired the services of the employee do control or if not,
they possess the right to control the work which is done by the employee and
how the work is done.
What is employer?
The employer is the organization or company which puts to work, employs or hires the services of the employee. The employer can also be an individual, a small business, a government entity, an agency, a professional services firm, a store, an institution or a non-profit association. The employer has the mandate of compensating the services rendered by the employee in a way which is agreed upon by both parties in the employment contract or as per the organization’s policy. These ways include a salary, an hourly, daily or weekly wage and other employment benefits as legally outlined by the local laws and provided by the employer.
In a workplace which is represented by a union, the employer bears the obligation of paying as per the union-negotiated contract. The employer has the power of terminating the employment of a worker if the employee fails to meet the standards expected at the time of employment or if he or she breaks some rules as set by the employer.
Differences between an employer and an employee
| Point of Difference | Employer | Employee |
| Goal | Maximize the productivity and efficiency. | To be able to financially support themselves and their families. |
| Cash flow | Gives out the cash (salary) as a deduction and receives the proceeds from the business. | Receives the salary as an addition and in turn, contributes to generating more income for the employer. |
| Roles and responsibilities | Ensure safety, health and welfare of the employees are well taken care of and provide a conducive working environment. | Serve the employer faithfully, follow the rules, honor the contract of employment and uphold loyalty and diligence in service. |
| Level of authority | Has authority over all the employees. | Has authority only over employees at lower levels. |
