An employee works under an employer's direction and control, while independent contractors have more autonomy over their work. Both are considered agents working for principals.
Employee - a person hired to perform services for another based on previously agreed terms regarding wages, working conditions, and benefits; an employee works under the direction and control of the employer. Independent contractors are also individuals who perform services under agreements but have more control over how the work is done. They are not considered employees but rather self-employed individuals. Both employees and independent contractors are types of agents who work on behalf of others, known as principals.
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