employment

Employment is the relationship of employer and employee comes into being when a legal person and an individual enter into a contract of employment, sometimes referred to as a contract of service.

When services are performed for a third party, they are usually either performed in the capacity of an employee or independent contractor. Services performed as an independent contractor are referred to as contracts for services.

There is no definitive test as to whether a person is an employee or an independent contractor, however it is a question of fact which must take into consideration the circumstances in which the engagement takes place.

In the UK, employees have statutory entitlements for which the employer is liable – such as holiday and sick leave – which do not exist for independent contractors.

Usage: The employment contract was discussed with the prospective employee.

Related Words: sick leave; holiday leave; redundancy; harassment; employers' liability; vicarious liability; contractor.