Sometimes it can be tricky to know if someone who’s connected to your business is classed as an employee. According to the government, there are a few things that define an employee, including if: They’re required to work unless they’re on leave They work at the business’ premises, or at a place specified by the business such as working from home They have a contract that refers to them as a employee It's important to know if your business technically has employees or not, as this determines whether you need employer's liability insurance or not. For a full list of definitions, see the government website.