The classification of employees is based on their employment status and relationship with the organization. This can include full-time employees, part-time employees, temporary or contract workers, and independent contractors.

Example
A company hires a full-time employee who works 40 hours per week and is eligible for benefits, as well as a part-time employee who works 20 hours per week and is not eligible for benefits. The company also hires a contractor temporarily to work on a specific project.