"Persons in employment are those coded 1 or 2.
Code 1: Did any work for pay or profit during the reference week
"Work" means any work for pay or profit during the reference week, even for as little as one hour. Pay includes cash payments or "payment in kind" (payment in goods or services rather than money), whether payment was received in the week the work was done or not.
- Persons in vocational training (apprenticeship or traineeship) are to be considered as employed (i.e. coded 1 or 2) only if they receive payments in cash or fringe benefits. Unpaid trainees are not considered as employed and should be coded 5.
Apprenticeships and traineeships are contracts or formal arrangements for a prescribed period of time between an employer and a participant (i.e. apprentice, trainee) or an institution representing the participant. The aim of the arrangement is that the participant person gains practical experience or theoretical knowledge by working under the supervision of more experienced workers.
In apprenticeships, the participant (apprentice) always receives remuneration in cash (wage or allowance) or in kind, whereas in some cases trainees may not be remunerated (unpaid trainees). Apprentices or trainees are often paid at a lower rate than other jobs; the difference is compensated by the gain of knowledge or/and work experience.
All apprenticeships are (part of) formal education programmes (as defined by ISCED 2011). The programme duration can vary from 6 months to 6 years. Learning time alternates between periods of practical training at the workplace (inside or outside the employer premises) and general/theoretical education in an educational institution or training centre on a weekly, monthly or yearly basis. Upon successful completion as evidenced by a qualification or certificate, apprenticeships qualify for employment in a specific occupation or group of occupation.
Traineeships can be proposed within formal education programmes (generally for shorter duration than apprenticeships, with or without specific requirements for the successful completion of the educational programme) or within non-formal education and training programmes e.g. traineeship organised by Public Employment Services for unemployed people. Trainees are to be considered as employed only if the payments in cash or fringe benefits are directly connected to their participation in the traineeship.
Some working arrangements between members of the same family could have similarities both with unpaid family workers and unpaid trainees. By convention, working arrangements between members of the same household should be treated after the implementation rules for unpaid family workers (see below).
- Self-employed persons with a business, farm or professional practice are also considered to be working if one of the following applies:
- A person works in his own business, professional practice or farm for the purpose of earning a profit, even if the enterprise is failing to make a profit.
- A person spends time on the operation of a business, professional practice or farm even if no sales were made, no professional services were rendered, or nothing was actually produced (for example, a farmer who engages in farm maintenance activities; an architect who spends time waiting for clients in his/her office; a fisherman who repairs his boat or nets for future operations; a person who attends a convention or seminar).
- A person considered as self-employed in the process of setting up a business, farm or professional practice; any initiative has to be done to run the business, as the buying or installing of equipment, renting the office or ordering of supplies in preparation for opening a new business.
- Unpaid family workers: Persons working in a family business or on a family farm without pay should be living in the same household as the owner of the business or farm, or in a slightly broader interpretation, in a house located on the same plot of land and with common household interests. Such people frequently receive remuneration in the form of fringe benefits and payments in kind. However, this applies only when the business is owned or operated by the individual themselves or by a relative. Thus, unpaid voluntary work done for charity should not be included.
The category includes:
- A son or daughter living inside the household and working in the parents' business or on the parents' farm without pay.
- A wife who assists her husband in his business, e.g. a haulage contractor, without receiving any formal pay.
- Persons raising agricultural products are coded 1 or 2 if they are the owners of the agricultural output (e.g. crop, cattle, timber, fish catch, etc.) and fulfil one of the following conditions:
- The agricultural output is intended to be sold or bartered, even if only a small part of it. If the respondent can not say if the output will be sold or bartered (as opposed to fully used for own-consumption), the fact that the previous harvest or the production of the previous year was sold or bartered can be taken as indication.
- The agricultural output is intended exclusively for own-consumption and it is an important contribution to the total consumption of the household.
Persons fulfilling one of these conditions are coded 1 if they worked at least one hour during the reference week. Persons fulfilling one of these conditions but not having worked for at least one hour during the reference week (e.g. because they are out of season) are coded 2.
Persons doing minor agricultural activities for leisure or to supplement the household food supply, which do not constitute an important contribution to the total household consumption, should be coded 5, in the absence of any other work for pay or profit.
- Persons who are obliged to perform some work to keep receiving unemployment benefits
In some countries, unemployed (under special circumstances) have to perform some work to keep receiving the unemployment allowances. If they have performed some work during the reference week, they should be coded 1.
- Persons who are building a house
If a person is building a house in order to earn a future financial profit (renting or selling it), he should be considered as employed (code 1 if he worked during the reference week, otherwise code 2). Building a house for only a family use is not enough to be considered as employed.
- Conscripts performing some work for pay or profit during the reference week should always be coded 4.
- Persons in paid employment who were on training during the whole reference week should be coded 1 if one of the three following statements is true:
- the participation of the employee is required by the employer.
- the training takes place inside normal working hours.
- the training is directly connected to the current job.
Code 2: Was not working but had a job or business from which he/she was absent during the reference week
Code 3: Was not working because on lay-off
- A person on lay-off is one whose written or unwritten contract of employment, or activity, has been suspended by the employer for a specified or unspecified period at the end of which the person concerned has a recognised right or recognised expectation to recover employment with that employer.
Lay-offs are classified as employed if they have an assurance of return to work within a period of 3 months or receive 50% of their wage or salary from their employer.
Lay-offs are classified as unemployed if they receive less than 50% of their wage or salary from their employer, don't have assurance of return to work or have an agreed date but this date falls after a period of 3 months and if they are "available to start work in 2 weeks" and have "actively searched for a job in the last 4 weeks".
Otherwise they are considered as inactive.
Persons without employment during the reference week but who have found a job to start in the future should always be coded 5 in this column."