Different Types Of Employment: Categories & Examples

Employment is the most common form of work in the United States, accounting for about 70% of workers. In this article, we’ll explore different types of employment and their characteristics.

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Types Of Employment

There are different types of employment; each type is unique and has its characteristics. Here are a few:

1. Contract Employment

Contract employment is a work arrangement in which an individual works as an independent contractor for an employer.

It may be useful to consider contract work in three types: fixed-term, indefinite-term, and project-based.

Fixed-term contracts are those where the duration of your employment is set at one time by both parties to the agreement.

Contractors often use these when they have specific tasks to complete.

For example, if you’re hired by someone who needs someone to do some cleaning around their house once every month or so on a Monday morning, this would be a fixed-term contract because it stipulates exactly how long you will work for them before moving on to another job.

Indefinite contracts allow both parties flexibility regarding length but still guarantee certain obligations, such as paying taxes on earnings made under such agreements.

However, they only guarantee how much money one can earn while working under these arrangements.

The most common example would be freelance writers who write articles based purely on personal preference.

It could earn more than full-time employees doing similar jobs because they don’t have set daily hours as most people employed within traditional companies do.

Read More: 11 Top Short-Term Career Training Programs

2. Part-Time Employment

A typical example is retail and marketing jobs

Part-time employment is when you work less than full-time but more than casual. 

Employers often offer part-time jobs as an option to those who prefer to have a flexible schedule and can only commit to a part-time position.

Part-time employees can work during their leisure time while also having time for family and other interests. 

You may also choose this type of job if you need some flexibility with your schedule or want to try out different types of work before deciding on one permanent position in your field.

3. Employment On Commission

Some examples of employment on the commission include:

  • Real estate agents who sell homes for their clients.
  • Insurance salespeople try to get people to buy insurance by offering discounts or other incentives.
  • Financial advisors who help clients with investments and tax preparation.

Commission-only work is where you are paid a percentage of the sale. This can be anything from a flat fee to an amount based on how much money you make for your company. 

4. Probation

Probation is an employer’s trial period of employment to evaluate your suitability for the job. 

It’s an opportunity for you to prove that you’re capable of performing in a particular role, and if they decide after six months or so that you’re not what they were looking for, then they can dismiss you without giving any notice.

When it comes down to it, probationary periods are often used as part of certain contracts when hiring new staff members or contractors.

They allow employers time to assess whether or not someone has what it takes before committing themselves fully to either side. 

  • If this sounds like something familiar from your own experience as an employee, consider how many times companies might have tried this tactic on their employees before deciding whether or not they should keep them around longer than originally planned.

5. Apprenticeship

An apprenticeship is a work-based learning program that provides the opportunity to train, develop and gain practical experience in an occupation while earning wages or salary. 

Some examples include:

  • Childcare workers (usually 16+ years old) who complete an approved coursework program in their field;
  • Medical assistants (typically 18+ years old) who complete an approved coursework program in their field;
  • Plumbers (usually 18+ years old) who complete an approved coursework program in plumbing technology;
  • Welders/pipefitters (typically 18+ years old) who complete a welding qualification from one of Australia’s leading colleges/universities

6. Full-time employment

Full-time employment refers to someone working full-time or more than 35 hours per week. 

Full-time workers usually have an annual leave entitlement of 4 weeks, paid sick leave and public holidays, maternity leave, and paternity/maternity/adoption pay.

Examples of full-time jobs include:

  • The average weekly wage in Australia is $1,826. This amount, however, varies depending on factors such as employer size and industry sector; therefore, it can be said that when comparing figures between different industries then, you will find there are differences in wages between companies with similar sizes but different areas of activity, e.g., large and small businesses, etc.

7. Casual Employment

Casual employees work temporarily and usually do not have the right to permanent employment.

Examples include Bartenders, waiters, baristas, and other restaurant staff; retail sales assistants; security guards; laboratory technicians.

Casual employees are not entitled to sick leave, annual leave, or any other benefits that permanent employees may be afforded under their employment contract.

Casual employees are not paid superannuation. In essence, employer contributions to an employee’s superannuation fund.

  • This means casual workers cannot take advantage of government-sponsored schemes such as MySuper or Kiwibank’s SmartSave plan for retirement savings if they want to retire at 55 with at least 15 years of service under their belt.

8. Traineeship

A traineeship is a form of employment in which an employer employs you and provides training. 

You may be paid a wage or salary, but it is also possible for your employer to offer you a training allowance. 

This can help fund the cost of tuition fees and other expenses associated with being trained at work. Traineeships are usually short-term.

For example, one year can sometimes last longer if what you’re learning is related to your job role once you start working full-time again after finishing your course of study or education program.

If you’re a trainee, your employer will provide some form of training to help you gain the skills and knowledge needed for your job. 

This is usually done before you start working full-time. You might be offered an apprenticeship or formal training program or learn through on-the-job experience.


1. How Many Types Of Employment Do We Have?

There are eight main types of employment. Understanding these various employment types and what employees with these different contracts are entitled to can help you decide what type of employment would suit you best.

2. What Is A Major Source Of Employment?

Option a is correct as, according to Census 2011, agriculture and its allied areas, like animal husbandry, fisheries, etc., employ 48.9% of the total working population.

3. What Is The Largest Source Of Employment?

India’s agriculture sector.

4. How Do You Categorize Employees?

An employee could be classified as exempt or non-exempt under state wage and hour laws.

5. What Is Employment, And What Are The Types Of Employment?

Employment is the state of being employed.

6. What Are The Two Categories Of Employment?

There are three types of employment:
Self Employed. Casual wage Labourers. Regular Salaried Employees.


The types of employment can be a very useful tools for your career, and each has its benefits and drawbacks, but the most crucial thing to remember is that you should always do what makes sense for your personal goals and plans.

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