Labour vs. Employee — What's the Difference?
By Maham Liaqat & Urooj Arif — Updated on April 23, 2024
Labour refers to the general body of workers or the effort used in production, while an employee is an individual who is hired to provide services to an organization under the terms of a contract.
Difference Between Labour and Employee
Table of Contents
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Key Differences
Labour encompasses the broader concept of work or services performed by workers, often used in a collective sense to describe a workforce or the act of working. Whereas an employee specifically refers to an individual who is formally hired by an employer to perform specific tasks under agreed conditions.
Labour is associated with both physical and mental efforts applied in the production of goods and services. On the other hand, an employee is typically viewed through the lens of legal and corporate relationships, indicating a more defined and contractual basis of work.
Labour can be seen as a more general, economic term, describing one of the factors of production alongside capital and land. Meanwhile, an employee is a term used in employment law and human resource management, signifying a person who has a direct, contractual relationship with an employer.
Labour is often discussed in the context of labour markets, labour unions, and labour rights, focusing on the collective bargaining and welfare of workers. Conversely, the concept of an employee usually involves individual employment rights, job descriptions, and the nuances of the employment contract.
In discussions of economics and industrial relations, labour is typically quantified as a total workforce or total hours worked. In contrast, discussions about employees often focus on employment statistics, individual employment contracts, and workplace policies.
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Comparison Chart
Definition
General body of workers or the effort they use in production
An individual hired to perform services under a contract
Context
Economic, collective
Legal, individual
Focus
Collective efforts and rights
Individual rights and contractual obligations
Associated Terms
Workforce, productivity, unions
Employment contract, job description, HR management
Relationship to Production
One of the factors alongside capital and land
Directly linked to specific tasks and organizational roles
Compare with Definitions
Labour
Effort exerted to do something.
Manual labour requires significant physical effort.
Employee
A person employed for wages or salary.
The company has over a thousand employees.
Labour
Effort related to producing goods.
The cost of labour affects the overall pricing of products.
Employee
An individual who works in someone else's business.
Employees at the plant are part of a union.
Labour
Work, especially hard physical work.
Construction work is considered hard labour.
Employee
A worker under contract of an employer.
Employees are required to follow company policies.
Labour
Workers collectively.
The labour union negotiates on behalf of its members.
Employee
A person who works part-time or full-time under a contract of employment.
She has been a reliable employee for many years.
Labour
The process of working.
Labour in factories often involves repetitive tasks.
Employee
A member of staff.
Our employees receive comprehensive health benefits.
Labour
Work, especially physical work
Manual labour
The price of repairs includes labour, parts, and VAT
Employee
A person who works for another in return for financial or other compensation.
Labour
The Labour Party
The Labour leader
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.
Labour
The process of childbirth from the start of uterine contractions to delivery
A woman in labour
Employee
One employed by another.
Labour
A group of moles
A labour of moles toils with the Earth
Employee
A worker who is hired to perform a job
Labour
Work hard; make great effort
They laboured from dawn to dusk
She was patiently labouring over her sketchbooks
Labour
Have difficulty in doing something despite working hard
United laboured against confident opponents
Labour
(of a woman in childbirth) be in labour
She laboured very well and comfortably because she was relaxed
Labour
Variant of labor.
Labour
Effort expended on a particular task; toil, work.
Labour
That which requires hard work for its accomplishment; that which demands effort.
Labour
(uncountable) Workers in general; the working class, the workforce; sometimes specifically the labour movement, organised labour.
Labour
(uncountable) A political party or force aiming or claiming to represent the interests of labour.
Labour
The act of a mother giving birth.
Labour
The time period during which a mother gives birth.
Labour
(nautical) The pitching or tossing of a vessel which results in the straining of timbers and rigging.
Labour
(historical) A traditional unit of area in Mexico and Texas, equivalent to 177.1 acres or 71.67 ha.
Labour
A group of moles.
Labour
(intransitive) To toil, to work.
Labour
(transitive) To belabour, to emphasise or expand upon (a point in a debate, etc).
I think we've all got the idea. There's no need to labour the point.
Labour
To be oppressed with difficulties or disease; to do one's work under conditions which make it especially hard or wearisome; to move slowly, as against opposition, or under a burden.
Labour
To suffer the pangs of childbirth.
Labour
(nautical) To pitch or roll heavily, as a ship in a turbulent sea.
Labour
Same as labor; - British spelling.
Labour
A social class comprising those who do manual labor or work for wages;
There is a shortage of skilled labor in this field
Labour
Concluding state of pregnancy; from the onset of labor to the birth of a child;
She was in labor for six hours
Labour
A political party formed in Great Britain in 1900; characterized by the promotion of labor's interests and the socialization of key industries
Labour
Productive work (especially physical work done for wages);
His labor did not require a great deal of skill
Labour
Work hard;
She was digging away at her math homework
Lexicographers drudge all day long
Labour
Strive and make an effort to reach a goal;
She tugged for years to make a decent living
We have to push a little to make the deadline!
She is driving away at her doctoral thesis
Labour
Undergo the efforts of childbirth
Common Curiosities
What rights do employees have?
Employees have rights outlined in their employment contract, including wages, work hours, and safe working conditions.
What is the main difference between labour and an employee?
Labour refers to work or workers collectively, especially manual work. An employee is an individual hired by a company to perform specific duties.
Can "labour" and "employee" be used interchangeably?
No, "labour" generally refers to work or workers as a collective group, whereas "employee" refers to an individual working under a contract.
Are all workers considered employees?
Not all workers are considered employees; some are independent contractors or freelancers without the same rights and benefits.
What is an employment contract?
An employment contract is a legal agreement between an employee and employer outlining the terms of employment.
How does labour relate to economics?
Labour is considered one of the primary factors of production in economics, essential for creating goods and services.
What role do labour unions play?
Labour unions represent the collective interests of workers, negotiating wages, benefits, and working conditions.
How is labour quantified?
Labour is often quantified as total workforce or hours worked in economic terms.
Can an employee be part of labour?
Yes, employees are part of the broader category of labour, especially when considering collective aspects like unions.
What is meant by "non-employee labour"?
Non-employee labour refers to workers not directly employed by a company, such as freelancers or consultants.
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Written by
Maham Liaqat
Co-written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
