In today’s diverse work environment, not all employees are the same—and that’s by design. Organizations categorize employees in various ways based on their work terms, legal status, and responsibilities. Whether you're running a startup, managing HR, or just entering the workforce, understanding the different categories of employees is essential.
Let’s break it down.
1. Based on Employment Type
This is the most common way to categorize employees. It defines the terms of their engagement.
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Permanent (Full-time) Employees
These are individuals hired on an open-ended basis. They typically work 35 to 40 hours per week and enjoy full employment benefits like paid leave, health insurance, and retirement contributions. In Kenya, they are protected under the Employment Act and are often entitled to statutory benefits like NSSF, NHIF, and the new SHA (Social Health Authority) contributions. -
Contract (Fixed-Term) Employees
Hired for a specific period or project, contract workers are bound by a contract that expires at a predetermined date. They may or may not receive full benefits depending on the terms of their contract. -
Casual or Temporary Workers
These employees are brought in to handle short-term tasks or cover absences. Their workdays and hours are irregular, and they are typically paid on a daily or hourly basis. In Kenya, labor laws cap casual work at 3 months before a worker must be converted to a more secure role. -
Interns and Trainees
Usually students or recent graduates, interns gain work experience for a limited time. While some are paid, others might receive only a stipend or non-monetary benefits like mentorship and training. -
Freelancers and Consultants
Though they perform work for a company, freelancers and consultants are technically not employees. They operate independently, handling their own taxes and social contributions.
2. Based on Work Schedule
This categorization defines how much and when an employee works.
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Full-Time Employees
These employees commit to standard business hours—typically 40+ hours per week—and form the backbone of most organizations. -
Part-Time Employees
Part-timers work fewer hours and may not always qualify for full benefits. However, their flexibility makes them valuable in many industries, including hospitality and retail. -
Shift Workers
Common in healthcare, manufacturing, and security sectors, shift workers follow a rotating or fixed schedule that could include night or weekend shifts. -
On-Call Workers
They are only called in when their services are needed. They may not have fixed hours but must be available when contacted.
3. Based on Legal Classification
This is important for compliance, taxation, and benefits.
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Employees
Legally recognized as part of the organization, these workers are entitled to benefits and are protected by labor laws. -
Independent Contractors
These are self-employed individuals offering specific services. Employers are not required to withhold taxes or provide benefits for them. -
Apprentices
Usually younger individuals enrolled in a learn-and-earn program. Their contracts are often tied to certification or vocational training.
4. Based on Job Level or Role
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Entry-Level Employees
Typically new to the workforce, they handle basic tasks and are supervised closely. -
Skilled/Technical Staff
These employees bring specialized knowledge or qualifications—think IT technicians, accountants, or engineers. -
Supervisors and Team Leaders
They manage small teams and ensure tasks are executed correctly. -
Middle Management
Department heads or coordinators who connect upper management with ground-level staff. -
Senior Management/Executives
These are decision-makers who guide the organization’s strategic direction.
Why Employee Classification Matters
Properly classifying employees helps in:
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Ensuring legal compliance with Kenyan labor laws.
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Managing payroll and benefits accurately.
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Creating clear reporting structures.
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Reducing HR conflicts and misunderstandings.
Final Thoughts
Employee classification is not just a formality—it shapes everything from compliance and payroll to company culture. At FaidiHR, we help businesses streamline HR processes and stay compliant with employment standards, including SHA and NSSF contributions.
Need help managing your workforce?
Contact us:
Sales: +254 702 339 699
Email: sales@faidihr.com