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Contingent Worker

What is a Contingent Worker?

A contingent worker is not the employee but a person hired who is given certain paid task(s) for a particular time tenure of a smaller scope project, for example, shutdown jobs in power plants, consultancy, freelancing, contracting, third party contractual workers; etc.

The contingent is derived from contingency which means conditional, dependent, subject to something, independent (in some cases), unforeseen, possible but not sure, unpredictable, intentionally for the utilization in certain uncertain circumstances, accidental, etc. A contingent is dependent upon other future circumstances.

What are the advantages for the employers for hiring contingent workers?

Following are some advantages for the employers for hiring contingent workers:

What are the disadvantages for the employers for hiring contingent workers?

Following are some disadvantages for the employers for hiring contingent workers:

Moreover, the contingent workforce is the way to minimize the costs extents on the labor markets on part of the employers. Indeed the employees’ salaries on a permanent basis are the biggest part of any organizational set up as its regular cost and pivotal most. Therefore, cutting costs on labor is the birth of the contingency plan workers for some specialized tasks and for a particular time span.

The employers usually call back the same contractors, temp workers, and contingency staff for the next short-term or long-term projects, based on the previous performance, for the completion as a success.

For specific projects, employers can also hire experienced contractors or contact staffing agencies with specialized skills to give more value to the project rather than assigning it to an inexperienced full-time employee of their company.

In contingency type of work arrangements, the employers are not concerned that how and when a worker works, rather the focus is the completion of the tasks expertly as well as timely.

Who is a Contingent Worker as per the United States Law?

It is worth mentioning here that if you categorize any of your permanent employees as contingent workers, you may face penalties!

Therefore in accordance with the United States Supreme Court decision of the judges, the following are the standards (of which the crux is being given below) which all must be considered for a worker to be placed under the shadow of the contingent workers management:

Wrap up

To conclude, it is suggested to follow the steps appended below for not only contingent but overall workforce management:

Related: WorkerIndependent Contractor