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The Legal Status and Benefit Entitlement of Individual Entrepreneurs in Employment Relations
The Legal Status and Benefit Entitlement of Individual Entrepreneurs in Employment Relations
Employment relations are the relations that arise between employees and employers on the basis of an employment contract and are regulated by labor law norms. One party to the employment relationship is the employee, and the other party is the employer.
EMPLOYEE – A physical person who, having entered into an individual written employment contract (agreement) with an employer, performs paid work at a corresponding workplace. Any person who has reached the age of 15 has the right to conclude an employment contract.
EMPLOYER – A legally capable individual, the owner or a person authorized (appointed) by the owner, the head of an enterprise, or an authorized body, who has the right to conclude, terminate, or amend the terms of an employment contract with employees.
EMPLOYMENT CONTRACT – A written agreement concluded individually between an employer and an employee, which sets out the main terms of employment relations and reflects the rights and obligations of the parties.
It should be noted that a natural person engaged in entrepreneurial activity, being simultaneously an employer, cannot be in an employment relationship with themselves. Since a sole entrepreneur operating as a natural person is not considered an employee, no salary can be calculated for them.
A sole proprietor is not considered an employee and is not included in the group of three persons. Therefore, they cannot benefit from the preferential rights granted to micro-entrepreneurship entities.
Employment relations are the relations that arise between employees and employers on the basis of an employment contract and are regulated by labor law norms. One party to the employment relationship is the employee, and the other party is the employer.
EMPLOYEE – A physical person who, having entered into an individual written employment contract (agreement) with an employer, performs paid work at a corresponding workplace. Any person who has reached the age of 15 has the right to conclude an employment contract.
EMPLOYER – A legally capable individual, the owner or a person authorized (appointed) by the owner, the head of an enterprise, or an authorized body, who has the right to conclude, terminate, or amend the terms of an employment contract with employees.
EMPLOYMENT CONTRACT – A written agreement concluded individually between an employer and an employee, which sets out the main terms of employment relations and reflects the rights and obligations of the parties.
It should be noted that a natural person engaged in entrepreneurial activity, being simultaneously an employer, cannot be in an employment relationship with themselves. Since a sole entrepreneur operating as a natural person is not considered an employee, no salary can be calculated for them.
A sole proprietor is not considered an employee and is not included in the group of three persons. Therefore, they cannot benefit from the preferential rights granted to micro-entrepreneurship entities.