10.1 0 Employee Types in Small Businesses

Permanent Staff

Permanent employment is usually the major type of employment used by most businesses. It offers better working conditions and stability to the employee. However, it does not give employers flexibility to increase or decrease workload as is needed because of the nature of the contract between the employer and employee; you cannot easily get rid of permanent workers to reduce costs in the short term. The employer would need to notify the employee in advance before the termination of the contract, as well as giving notice periods, severance pay, and might need to demonstrate that selection for redundancy has been fair and without any kind of bias.


Temporary Staff

This is a very flexible way to employ people but it often leads to a workforce that lacks loyalty as they know their employment is only temporary.

The business can reduce or increase it's staff requirements easily and it can terminate contracts of employments without as much hassle as with the permanent employees.

There are laws which have been enacted lately to enhance the rights of temporary workers and to improve their working conditions.


Full-Time Staff

These are staff that work a full standard working week throughout the year except their holiday entitlement periods. In this type of employment the contract needs to state the the holiday entitlement, number of required hours for work, overtime availabilities and amount payable. In many ways, this category is very similar to permanent staff.


Part-Time Staff

This offers the benefit of flexible working patterns to fit into the schedule of the employees. The hours are less than full-time. Equal rights accrue to the part-time workers as it does to the full-time worker.

Women make up the majority of the part-time workforce in the United Kingdom, accounting for around 60% of the total.


Activity 26 - Identify the advantages and disadvantages of the different types of employee.