Legal Definitions - contract labor

CONTRACT LABOR

Contract labor refers to a type of employment where a worker is hired for a specific job or project, usually for a limited period of time. The worker is not considered an employee of the company, but rather an independent contractor.

• A construction company hires a plumber to work on a project for three months.
• A software company hires a freelance developer to create a new app.

These examples illustrate contract labor because the workers are hired for a specific job or project, and are not considered employees of the company. They are responsible for their own taxes and benefits, and are usually paid on a per-project or hourly basis.