Employment · HR glossary

Worker Classification

Worker classification determines the legal or administrative category of a person performing work, such as employee or independent contractor. The applicable test depends on jurisdiction and the particular legal purpose.

Example

A business reviews how a consultant actually works, including control and independence, rather than relying solely on the service agreement's title.

What to keep in mind

Employment rights, tax and social-insurance systems may use different tests. Misclassification can create unpaid obligations, so assess the real relationship and obtain appropriate advice for uncertain cases.

Further reading

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