FORM OF EMPLOYMENT
The following provides an outline of how people are classified in the 'Form of employment in main job' data item.
Persons are classified as employees (excluding owner managers of incorporated enterprises (OMIEs)), owner managers of incorporated enterprises and owner managers of unincorporated enterprises (OMUEs) based on their responses to questions in the monthly Labour Force survey (LFS).
Employees (excluding OMIEs) from the LFS are persons who:
- work for a public or private employer; and
- receive remuneration in wages or salary; or are paid a retainer fee by their employer and worked on a commission basis, for tips, piece-rates or payment in kind.
Owner managers of incorporated enterprises from the LFS are persons who:
- work in their own incorporated enterprise, that is, a business entity which is registered as a separate legal entity to its members or owners (also known as a limited liability company).
Owner managers of unincorporated enterprises from the LFS are persons who:
- operate their own unincorporated enterprise, that is, a business entity in which the owner and the business are legally inseparable, so that the owner is liable for any business debts that are incurred. This category includes those engaged independently in a trade or profession.
These people from the LFS are then asked questions in the FOES to identify key characteristics of employees, independent contractors and other business operators. The responses to these questions are then used to determine how people are classified as employees, independent contractors and other business operators in the 'Form of employment' data item.
These questions are:
"Do you work as an independent contractor in your job?"
"Do you receive a pay slip/advice?"
"Do you/Does your business invoice or bill clients/employers?"
"Excluding wages and salary, are you able to make drawings from your employer/business?"
The following decision table, shows how people are classified in the 'Form of employment' data item.