What legally defines an employee from a freelancer for an organization?

[Kross]

Some organizations that have people working for them, in a bid to avoid taxes define the people working for them as freelancers.

What legally differentiates an employee from a freelancer for a business organization?

 

[Fidelia]

If a organization controls the working hours of a person, that person is a staff and not a freelancer.

 

[eLdavis]

I think one major difference is behavioral control. For an employee, the company or organization decides how the work is done, and the methods used to achieve the results, a freelancer on the other hand have more freedom.