A person who works for someone else in return for payment is called an employee. For example, office workers, chefs and retail assistants. A person that pays an employee for their work is called an employer.
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An employee is a person who works for someone else in return for payment.
An employer is a person who pays people to work for them.
Features of Being an Employee • A wage/salary is received in return for the work. • Employees have certain rights and responsibilities.
Benefits of Being an Employee
• Regular payment. • Possible benefits-in-kind (e.g. health insurance or a company car).
Example
Jennifer works for a large financial institution as a financial advisor. She has many duties and responsibilities. In return, she receives a yearly salary of €52,000. Therefore, Jennifer is an employee.
SELF-EMPLOYMENT
People who work for themselves, rather than for an employer, are self-employed. For example, designers, accountants and photographers may be self-employed. Self-employment means working for yourself.
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Features of Self-employment • Full responsibility for all aspects of the business. • No regulated work hours. • There is a risk of losing money if the business fails.
