Who is considered an employee?

The definition of an employee is anchored in the relationship between an individual and an employer, where the individual is compensated for their labor or services. This arrangement typically involves a contract or agreement outlining the terms of employment, including responsibilities, duties, and remuneration.

An employee usually works under the direction of an employer and is subject to the employer's control over how tasks are performed. This relationship can also include benefits like health insurance, retirement plans, and paid leave, which are typically not available to independent contractors or consultants.

The other options involve different types of relationships with a business. An investor, for instance, provides capital but does not work directly for the company. Consultancy services are generally offered by independent contractors who are not considered employees, as they typically operate autonomously and are hired for their expertise without direct oversight from the employer. Likewise, a company representative may act on behalf of the company without being an employee; they might be a contractor or an agent involved in specific tasks or sales but not under the direct employer-employee relationship typically associated with an employee.