What is the difference between an agent and an employee?

The key difference between an agent and an employee is in the relationship each has with the company they are working for. An employee is an individual who is directly employed by the company, with an employer-employee relationship established. This means the employee is subject to the control and direction of their employer, as it relates to the work they are doing. An agent, on the other hand, is an individual that has been authorized by a company to conduct business on its behalf under contract. The agent does not become an employee of the company, and has a secondary, independent relationship with the company. In Delaware, the law provides that both agents and employees must act in good faith and in the best interests of the company. The law also requires that all contracts containing agency relationships must be in writing. Additionally, agents must act within the scope of their authority, while employees must work within the scope of tasks that the employer has assigned them. It is important to differentiate between an agent and an employee, as the differences between them can have implications for the company’s liability, including with respect to taxes, worker’s compensation, and employment law. Knowing the difference between an agent and an employee is key to complying with commercial law in Delaware.

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