Back to glossary
Global term
Contractor
An independent professional engaged for a specific project or period, paid through an invoice rather than payroll.
Contractors deliver specialist skills on a defined engagement, often through their own company or via an umbrella employer. They typically command higher rates than employees because they cover their own taxes, insurance and downtime. Different countries have specific rules to distinguish a true contractor from a disguised employee, including IR35 in the United Kingdom, the ABC test in parts of the United States and Personal Services Income rules in Australia.
Put this knowledge to work.
Hustle Report sends you a personal weekly plan with side hustles, salary benchmarks and savings tailored to your CV.
Get the report