Engaging a Subcontractor

Subcontractors can be a useful and flexible tool for businesses that require specialist skills for a particular job or in other circumstances where a project needs a particular type of input, which would not be appropriate from a full-time employee. Nevertheless businesses should be careful in entering such arrangements as independent subcontractors' rights, obligations and legal liabilities associated with the work undertaken differs from those of an employee. Should a court subsequently determine that the relationship between the parties was in fact one of employer and employee, significant penalties may apply.

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