Employer vs. Employee — What's the Difference?
Edited by Tayyaba Rehman — By Fiza Rafique — Updated on September 21, 2023
An employer is a person or organization that hires and pays individuals for work. An employee is an individual who works for an employer in exchange for compensation, such as wages or salary.
Difference Between Employer and Employee
Table of Contents
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Key Differences
An employer is typically a person, company, or organization that employs individuals to perform specific tasks in exchange for compensation. The employer holds the authority in the employment relationship and is responsible for providing wages, benefits, and a work environment. On the other hand, an employee is an individual hired by the employer to perform tasks or services in exchange for payment.
Fiza Rafique
Sep 21, 2023
Employers usually have the ability to hire, fire, and determine the conditions of employment. They often set work schedules, provide tools and resources, and establish the code of conduct for the workplace. Employees, conversely, generally have less authority and are subject to the rules and conditions set by the employer. Their primary obligation is to perform the duties assigned to them to the best of their ability.
Fiza Rafique
Sep 21, 2023
The legal responsibilities of employers often include paying taxes on behalf of the employees, providing safe work conditions, and adhering to labor laws. Employees have fewer legal obligations but are expected to follow company policies, fulfill their job responsibilities, and pay their income taxes.
Fiza Rafique
Sep 21, 2023
In most cases, employers offer benefits such as healthcare, retirement plans, and paid time off as part of the employment contract. Employees usually receive these benefits as part of their compensation package, but it's not an obligation for all employers to provide such perks.
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Sep 21, 2023
Comparison Chart
Authority Level
Higher, sets terms of employment
Lower, follows terms of employment
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Legal Responsibilities
Pays payroll taxes, provides safe work environment
Follows company policies, pays income taxes
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Contractual Relationship
Creates employment contracts
Agrees to employment contracts
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Sep 21, 2023
Definitions
Employer➦
A person or entity that hires workers.
The employer announced a new hiring freeze.
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Sep 21, 2023
Employee➦
A person hired to perform work for compensation.
The employee clocked in at 9 a.m.
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Sep 21, 2023
Employer➦
The party responsible for paying wages.
The employer deposited my paycheck on time.
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Sep 21, 2023
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Employee➦
An individual subject to an employer's rules.
The employee adhered to the dress code.
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Sep 21, 2023
Employer➦
A party offering work benefits.
The employer provides healthcare and retirement benefits.
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Sep 21, 2023
Employee➦
A worker receiving wages or salary.
The employee received a bonus this year.
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Sep 21, 2023
Employer➦
To provide work to (someone) for pay
Agreed to employ the job applicant.
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Dec 15, 2018
Employee➦
A contributor to a company's operations.
The employee was essential to the project.
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Sep 21, 2023
Employer➦
To engage the attention or activity of; occupy
Employed himself for an hour reading blogs.
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Dec 15, 2018
Employee➦
A contractual party in an employment agreement.
The employee signed a non-compete clause.
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Sep 21, 2023
Employer➦
To put (something) to use or service
Employed a pen to open the package.
Employed her skills in the new job.
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Dec 15, 2018
Employee➦
A person who works for another in return for financial or other compensation.
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Dec 15, 2018
Employer➦
To devote (time, for example) to an activity or purpose
Employed several months in learning Swahili.
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Dec 15, 2018
Employee➦
An individual who provides labor to a company or another person.
One way to encourage your employees to work harder is by giving them incentives.
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Dec 15, 2018
Employer➦
A person, firm or other entity which pays for or hires the services of another person.
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Dec 15, 2018
Employer➦
The authority in an employment relationship.
The employer set the rules for workplace conduct.
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Sep 21, 2023
Employer➦
An entity providing job opportunities.
The company is a major employer in the area.
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Sep 21, 2023
FAQs
What is an employer?
An employer is a person or organization that hires individuals for work in exchange for compensation.
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Sep 21, 2023
What is an employee?
An employee is an individual who works for an employer in return for wages or salary.
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Sep 21, 2023
Who has more authority, employer or employee?
The employer generally has more authority in the employment relationship.
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Sep 21, 2023
What are the employer's tax responsibilities?
Employers usually have to pay payroll taxes and may have other tax obligations.
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Sep 21, 2023
Do employees have legal obligations?
Employees are expected to follow company policies and pay income taxes.
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Sep 21, 2023
Do employers have to offer benefits?
Offering benefits depends on the jurisdiction and employment contract but is generally not a legal requirement.
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Sep 21, 2023
Do employees have the right to unionize?
In many jurisdictions, employees have the legal right to unionize.
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Can an employee negotiate wages?
Employees often have the right to negotiate wages, depending on the employer and market conditions.
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Sep 21, 2023
Are employees guaranteed job security?
Job security often depends on the employment contract and labor laws.
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Sep 21, 2023
Can an employer change work conditions?
Generally, an employer can change work conditions unless restricted by a contract.
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Sep 21, 2023
Can an employee refuse tasks?
An employee can usually refuse tasks that are unsafe or not in their job description.
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Sep 21, 2023
What are typical employer-provided benefits?
Common benefits include healthcare, retirement plans, and paid time off.
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Sep 21, 2023
Can an employer fire an employee without reason?
This depends on employment laws and contracts, but in at-will employment, generally yes.
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Sep 21, 2023
What are the employee's rights?
Employee rights often include a safe work environment, fair wages, and the ability to report grievances.
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Sep 21, 2023
Who creates the employment contract?
The employer usually drafts the employment contract.
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Sep 21, 2023
Author Spotlight
Written by
Fiza RafiqueFiza Rafique is a skilled content editor at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform.
Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
