Using contractors and subcontractors

Introduction

It is common for businesses to use contractors and subcontractors instead of hiring permanent staff when:

• the work is short-term
• expert skills are required for a finite period or a one-off project
• the workload is unknown

Contractors are not employees of the business but have a contract for services. Subcontractors undertake a contract from a contractor.

This guide explains the different roles of contractors and subcontractors and sets out how your business might benefit from using them. The guide also describes potential disadvantages of using contractors and subcontractors.

Subjects covered in this guide

• Introduction
• Contractors and subcontractors - the difference
• Pros and cons of using a contractor or subcontractor to provide staff
• Employment status - implications for tax and worker rights
• Health and safety requirements for employing contractors
• Other legal points to consider when employing contractors
• Get the most from contractors and subcontractors
• Protect your business from rogue contractors
• Here's how the use of a short-term contractor added value to a project