Understanding The Basics of Labor Contracting
Hiring new employees can be quite a time-consuming and expensive process. This is why instead of going through the hiring process, many businesses choose to use labour supply services whenever they need additional manpower.
The manpower services in Gandhidham already have a database of talents who can render specific tasks based on what is required in the position. Working with a reliable manpower supplier allows you to find and hire workers who can are the best fit for your vacant position, or who can help you complete a short-term or seasonal project more quickly.
But before you decide whether you will hire additional employees and go through the hiring process on your own or partner with a manpower supplier in Gandhidham, you have to understand first the difference between these two.
What is a labor contractor?
A labor contractor, also known as an independent contractor, is an agency, business, or individual who renders specific services for another business, entity, or person based on the agreed term or contract.
Those talents who are connected with the manpower contractor and who will directly perform the work are known as subcontractors. They are not always necessarily an employee of the said manpower agency.
Major differences between an independent contractor and an employee
Though both an independent contractor and an employee will render services to your company, they differ in many ways. Below are some of the major differences between these two.
- Employees work for you regularly. Contractors perform services based on what is clearly stated on the contract.
- Employees are often hired for long-term positions. Contractors are hired to complete a short-term or seasonal project.
- Employees often work for a single company only. Contractors are not an employee of the company they are providing work for. They are a self-employed and project-based worker, and therefore, can work for different clients or companies at a time.
- Employees are paid based on their monthly salary or compensation. Contractors are paid for their work.
- Employees are entitled to get employment benefits such as raises, bonuses, sick leave, and medical benefits. Contractors are not entitled to receive any employee benefits from the company they are providing services for.
- The employees’ duties and responsibilities are based on the job description and on what is required for the position. The contractors’ duties, responsibilities are governed by a labor contract. How the work should be executed, the duration of the project, the amount the company needs to pay to the contractor for the services rendered, and the type and specifics of the work are all governed by the contracts.
Why you should consider labor contracting?
Partnering with a labor supplier in Gandhidham offers you many benefits. And to know whether you will hire new employees or work with a labor contractor, you have to determine first your company’s goals and needs.
- You need someone to fill in a position that is temporarily left vacant because of your employee’s absence due to some reasons.
- You quickly need someone to complete a certain task.
- You need someone to perform less frequently needed tasks like payroll services or housekeeping services.
- You need specific talents to work on your short-term project.
- You need additional workers to boost your manpower during peak seasons.
If any of the statements above describe your current needs or goals, the best option you have is to work with a labor contractor.