by Caryna St. John

Created on: April 07, 2011

Temporary workers, contractors and freelancers are various types of workers who do not work full or part-time for one employer. If you are considering becoming one of these types of workers, it is important to understand the benefits and disadvantages. Below are descriptions of what constitutes a temporary worker, contractor and freelancer.

Temporary Workers

Temporary workers are those hired for a set work schedule until they are no longer needed. They may be hired by the day, the week, or the month. In many jurisdictions, they cannot be employed in the same position for more than 12 months and still be classified as temporary.

Temporary workers are often preferred because they can be hired and fired at will, even in unionized states. Temporary workers are paid for time worked, regardless of quality or output. However, if they do not produce, they can be terminated.

Many temporary workers manage full time or year-round employment by working with a temporary worker agency that sends them out on subsequent assignments. The person thus works nearly all the time for the same agency but at different work sites and in different positions. Temporary workers must be paid overtime and given adequate breaks. They are not, however, paid for time not worked, vacation, or sick leave.

Contractors

Contractors are hired for a specific contract based on a task or a set time period. Contractors are common in construction, when the contract is to perform all the plumbing or carpentry in a house. The contractor may then be rolled over into working on subsequent or concurrent contracts.

Contractors are valued as more flexible laborers because they can be hired at will. They are also considered better than full-time employees because they are no longer employed at the end of their contract. If the work is shoddy, the contract itself can be contested.

Contractors cannot be ordered to do work above and beyond the contract. Contractors cannot be forced to work overtime unless it is necessary to meet the contractually agreed schedule. Contractors also have the protection of the contract itself, though they must go to court to enforce payment.

Contractors offset the higher average pay rate per hour for the job against the fact that they must pay their own expenses out of pocket; they may even hire sub-contractors to do secondary tasks for them. Contractors are free to seek simultaneous contracts and to manage their hours and working conditions. Contractors are also paid more because they must pay their own self-employment taxes.

Freelancers

Freelancers can be contractors or temporary workers. Website design is typically a contract job; they are paid for the task of creating and setting up the site. They may also be contracted to perform maintenance on the website or server for a weekend each month.

Freelancers can also be temporary workers. Freelancers often work as temporary workers. Technical writers, software testers and drafters can be hired for a week or a month to work at a specific point in a project.

Freelancers must be careful of their legal classification. They may end up classified as contractors by those seeking to avoid paying overtime, though they do not have control over their schedule. Freelancers may also be classified as temporary workers by those seeking to avoid paying contractor labor rates.

As you can see, there are both similarities and differences among temporary workers, contractors and freelancers. If you are trying to decide which route is best for you, consider the type of work that you will be doing and the types of clientele that you would service. By taking these factors into account, it should become obvious which title suits your line of work best.

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