Employment status: Employee or self-employed

Workers usually fall into one of two categories:

• Employee
  What is an employee

  Generally, an employee works under the direction and control of the individual or business who hired them under a contract of service (employer-employee relationship). Under the terms and conditions of employment, an employee does not normally have the chance to make a profit or suffer a loss. An employee is not seen as operating their own business, but rather as being an integral part of the payer’s business. An employee may be entitled to benefits, get paid vacation time, or be covered by a collective agreement.

• Self-employed worker
  What is a self-employed worker

  A self-employed worker carries on their own business. A self-employed worker enters into a contract for services (business relationship) with the individual or business they provide a service to. In this relationship, the self-employed worker agrees to provide a service, and is free to choose how to carry out the contract. A self-employed worker is not under the direction or control of the payer.

Use this guidance if you are:

• A payer or employer
• A worker

It will help you understand how to determine a worker's employment status.

Workers and payers can choose how they set up their affairs; however, the employment status they choose must reflect their working relationship. In other words, all of the facts, including the actual terms and conditions of employment, determine a worker's employment status, not just the intention.