Employment Relationships

Employment relationships define the legal and practical framework within which work is performed, encompassing employment contracts, worker classification, terms of engagement, and the balance of rights and obligations between employers and workers.

The nature of employment relationships has evolved significantly with the growth of the gig economy, platform work, temporary and agency work, and outsourcing. ISO 26000 emphasises that organisations should not seek to avoid obligations to employees by disguising relationships that would otherwise be recognised as employment relationships under law or practice. The ILO's Employment Relationship Recommendation (R198) provides guidance on determining the existence of an employment relationship.

Types of Employment

Standard employment involves a direct, open-ended contract between employer and employee, with defined working hours, wages, and benefits. Fixed-term contracts have a specified end date and are used for project-based or seasonal work. Part-time employment involves fewer hours than full-time equivalents. Agency and temporary work involves a triangular relationship between the worker, the agency, and the user enterprise. Platform work and the gig economy have created new forms of work that often fall outside traditional employment classifications.

Responsible Practices

Responsible employment practices include providing written contracts that clearly define terms and conditions, ensuring that worker classification accurately reflects the nature of the relationship, providing equal treatment for part-time and fixed-term workers, ensuring that outsourcing and subcontracting do not undermine labour standards, and maintaining transparent and fair recruitment and termination procedures.

Reporting Requirements

GRI 2-7 (Employees) requires disclosure of total employees by employment type and gender. GRI 2-8 (Workers Who Are Not Employees) requires disclosure of workers who are not employees but whose work is controlled by the organisation. ESRS S1 requires comprehensive workforce disclosure including employment types, contract types, and working arrangements.

Further Reading

• ILO Employment Relationship — R198 guidance
• ISO 26000 — Labour practices guidance

Related Topics

• Working Conditions
• Fundamental Labour Rights
• SDG 8: Decent Work