what is an independent contractor

A Basic Guide About Everything You Need To Know About Independent Contractors!

There are several businesses that are in the struggling period and focusing on their transformation or growth. The workforce for your business cause can be a mixture of employees, contractors and workers. Have you ever considered independent contractors? Or do you clearly understand what is an independent contractor and how that can be beneficial for your business?

It is important to explain an individual his employment status when you bring them to work for your business. People mostly mix up the status of the employees and the contractors who are on a contract of working temporarily for your business. Such contractor examples are a freelance copywriter who supports marketing campaigns or an IT consultant who works on IT projects.

Further in this blog, we will gather information about the introduction of what is an independent contractor, the differences between the employee and an independent contractor, and how beneficial it is to work with the contractors. We will begin by getting to know the independent contractors first.


What Is An Independent Contractor

Independent contractors are also known as other terms like consultants or freelancers. They are normally known to be self-employed workers who carry out the work required by your business. They are normally choired for a short period of time to get the benefits from their skills and specialisation.

They can offer their services for a specific project of your company for a defined time duration.


Get in touch with one of our experts to get to know more about what is an independent contractor and how hiring a contractor can be beneficial for you.


Prominent Differences Between An Employee and A Contractor

Often people confuse employees with contractors. However, there are plenty of key differences that make the status of an employee and an independent contractor totally different from each other. We have listed the basic three key factors here that will make you identify factors to differentiate between them.

According to UK law, the employees and the contractors are different because of the following factors:

  • Substitution
  • Control
  • Mutuality of Obligation

Substitution: A contractor is allowed to have another individual to help him complete the required task of the company, however, the employee of a business is not allowed to bring someone else to the work premises to complete the given tasks.

Control: The contractors are allowed to schedule their working hours on a weekly or monthly basis just as it suits them, however, the employee has to follow the given schedule by the employer and they are bound to serve in those strict working hours.

Mutuality of Obligation: There is a flexibility factor involved in the case of contractors. If they find the offered project suitable to their skills and schedule they will accept it. They are not obliged to accept the offers as it is. On the other hand, employees are not allowed to reject any work idea or project offered to them by the employer.


Are you a self-employed contractor or do you seek information to grow your valuation in the market? We can offer instant and professional help. Give us a call on 02034411258 or request a callback


How Is An Independent Contractor Advantageous For your Business

Generally, it is considered more beneficial to work with a contractor for a short period of time than to have a full-time hired employee and have the demanded cuts for the employee perks from the company. We have listed a few factors that are beneficial if you have a contractor to complete the project than hiring a permanent employee for the cause, this includes the following:

  • Competitive Advantage
  • Fewer Obligations as an Employer
  • Minimise Risk of Inappropriate Hiring
  • Better for Urgent or Temporary Task and Projects
  • Specialised in Skills

Competitive Advantage: It will help to gain a competitive edge when a specialised person enriched with experience from different companies in the industry is working on your project. They will come with a different night and your project and work will get benefit from their skills and experience.

Fewer Obligations as an Employer: In case an independent contractor goes on maternity or sick leave, you don’t have to deal with statutory payments and keep the position open for them. This causes a little loss and hinders the work pace of the company. However, a regular employee seeks to avail of the perks from the company.

Minimise Risk of Inappropriate Hiring: As hiring an employee comes with doubt about whether you chose the appropriate person for the position or not. This too is at the risk of a permanent position. A contractor can be tested and defined as suitable for the project and then get the work which is a reason to minimise the risk of inappropriate hiring.

Better for Urgent or Temporary Task and Projects: If you require someone who is swift in completing the task with accuracy and a specified skill, especially for the relevant project, hiring a contractor can be a great help. You will not even ask for the induction and initial training to let them know your business basics. You can get them stuck with the project within a moment and your time will not be wasted.

Specialised in Skills: The independent contractors offer just fine and specialised skills that you may not find in a regular employee for a specific task to be completed on a day-to-day routine.

The Bottom Line

Now that you have gathered a fair amount of information about what is an independent contractor, we can sum up the discussion finally. There is no doubt that hiring a contractor who is specialised in a specific project is beneficial for your busienss as you expect to gain the advantage of experience from different places of the industry but this can also let you experience a person who does not own the project as much as the permanent employees do.

We hope these few minutes of reading will help you to decide on hiring for your new business project.


Disclaimer: The information about what is an independent contractor provided in this blog including text and graphics is general in nature. It does not intend to disregard any of the professional advice.

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