Employee: Meaning, Definition & Examples

Glossary >

Employee

What is an employee?

An employee is someone hired by a business to carry out work in exchange for pay. The employer controls how, when, and where the work is done.

Employees usually receive employee benefits such as holiday pay, sick pay, pensions, and legal workplace protections.

Around 34.39 million people were working as employees in early 2026, according to the UK Employment Economic Indicators Report.

How does employment work?

Employment starts when a business hires someone under an employment contract. The employer agrees to provide work and pay wages, while the employee agrees to carry out duties and follow company policies.

Employees may work full-time, part-time, permanently, or on fixed-term contracts.

In the UK, employees are legally entitled to rights such as the National Minimum Wage, paid holiday, workplace pension contributions, and protection against unfair dismissal.

Types of employees

Businesses can hire different types of employees depending on workload, budget, and business goals. Common employee types include:

Full-time employees - Usually work regular weekly hours with full benefits.

Part-time employees - Work fewer hours, often with flexible schedules.

Fixed-term employees - Hired for a set period or project.

Temporary employees - Cover short-term business needs.

Remote employees - Work from home or another location.

Seasonal employees - Hired during busy periods such as Christmas or summer.

In the UK, flexible working continues to grow, with millions of employees now working remotely or hybrid at least part of the week.

What are employee rights in the UK?

Employees in the UK have legal rights designed to protect pay, wellbeing, and fair treatment at work. These rights usually begin from the first day of employment, although some protections build over time.

Common employee rights include:

National Minimum Wage or National Living Wage

Paid annual leave

Statutory sick pay

Workplace pension contributions

Maternity, paternity, and parental leave

Protection from discrimination and unfair dismissal

Employee vs contractor - What's the difference?

Employee	Contractor
Becomes part of the business team	Usually brought in for a specific job or project
Works set hours decided by the employer	Decides how and when the work gets done
Gets benefits like holiday pay and sick pay	Usually does not receive employee benefits
Paid through PAYE payroll	Sends invoices and manages their own tax
Has more legal rights and protections	Has more flexibility and independence

A simple way to think about it: employees work in the business, while contractors usually work with the business. The difference matters because it affects tax, benefits, and legal responsibilities.

Employee vs employer - Who does what?

Employee	Employer
Carries out the work	Provides the work and pays wages
Follows company policies and instructions	Manages staff and workplace operations
Completes tasks and responsibilities	Sets expectations, schedules, and goals
Helps support business growth	Provides tools, training, and support
Must follow workplace rules	Must follow employment laws

In simple terms, the employee does the job, while the employer runs the business and creates the working conditions.

Both sides have responsibilities that help the workplace run smoothly.

Employee explained with a simple UK example

Sophie works as a full-time receptionist at a dental clinic in Leeds. She works Monday to Friday from 8:30am to 5pm and receives a monthly salary through PAYE.

The clinic provides paid holiday, pension contributions, and sick pay. Her manager decides her working hours and daily responsibilities.

Because Sophie works under the clinic’s control and receives employee benefits, she is legally classed as an employee rather than a self-employed contractor.

‍