Independent Contractor Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Independent Contractor, written in plain English, along with examples of how it is used.

What is Independent Contractor?

A person or a business who is contracted into for a particular business which will be performed independantly by an outsider of an independent contractor enters into the contract with another firm in writing with duties, pay, obligation etc in writing. They execute the contract by their own means and methods and are answerable to the extent of the product they are working on only. Independant contractors are different from an employee as they are not entitled to any employee benefits like health, social security etc. But they work at their leisure along as they fullfill the terms of the contracts and have marginns on their work as any business.

History and Meaning of Independent Contractor

The term "independent contractor" has been used for centuries and refers to a person who provides goods or services to another person or business under the terms of a contract. Originally, independent contractors were mainly skilled tradespeople, such as masons, carpenters, and blacksmiths, who were hired to complete specific tasks or projects. However, the concept has since expanded to include a wide range of professions, from consultants to software developers, who work on a project-by-project or assignment-by-assignment basis.

Examples of Independent Contractor

  1. A freelance graphic designer is hired by a marketing agency to create a new logo for a client. The designer is not an employee of the agency and works from their own office, using their own equipment.

  2. A construction company hires an electrician to complete electrical work on a project. The electrician is an independent contractor and is responsible for providing their own tools and equipment.

  3. A publishing company contracts with a freelance writer to create content for a new book. The writer works from home, setting their own schedule and delivering the completed work to the publisher by a specified deadline.

Legal Terms Similar to Independent Contractor

  1. Contractor: like an independent contractor, a contractor is hired to perform specific work or services for another party, but may be more closely supervised by the hiring party.

  2. Employee: an employee is someone who works for a company under the direction and control of that company, and is entitled to certain legal protections and benefits.

  3. Freelancer: similar to an independent contractor, a freelancer is a self-employed individual who works on a project-by-project basis. However, the term "freelancer" is often used in the creative industries, such as writing, design, and photography.