A contractor is a skilled person (or organisation) who provides services for other parties. Often, individual contractors are self-employed and run their own business.
If an organisation hires a contractor, they hire the contractor as an external worker, rather than as an employee, for a set time (or project). For example, a company may hire a freelance accountant rather than employing one in-house.
Outsourcing work (such as IT, design, or delivery services) to contractors is very common and allows clients to access the exact services they need without hiring new staff. Contractors can come from every industry and include labourers, skilled tradespeople, and freelancers.
Typically, contractors:
- Have more than one client
- Send invoices to their clients
- Use their own tools or equipment
- May hire employees or subcontractors to help complete services
- Don’t receive employment benefits from clients