Contingent employment is short-term work without a long-term contract, including seasonal, project-based, and on-call positions. It can increase productivity during busy periods, but some employers use it to avoid legal and moral obligations. Contingent workers may become permanent employees, but some employers abuse the system to avoid paying benefits.
Contingent employment is short-term or on-call work that does not require the creation of a long-term contract between employer and worker. There are many different types of contingent employment, including seasonal work, project-based jobs, and on-call positions. While contingent employment can be economically and practically useful for employers and workers, some economic experts believe that it can also be used to cover a myriad of legal and moral infractions.
The most important distinction between contingent employment and traditional employment is the creation of a short-term contract. In a traditional job, workers are typically hired without an end date in mind, although both employer and employee have the right to end the contract at any time. In contingent work, the contract usually specifies a term of employment, which could be a project completion date or the turn of a season. Some contingent employees may be hired as permanent employees at the end of their short-term contract, when they usually sign a new contract as full-time workers.
Contingent employment contracts can be useful in a number of situations, but are most often used to increase workplace productivity during highly active time periods. Seasonal workers, for example, can be hired at retail stores during the weeks leading up to the holiday season to compensate for larger crowds. In the agricultural industry, seasonal workers can also be hired during planting or harvesting, to ensure maximum efficiency during these crucial periods. Project-based workers, such as freelance construction workers or film crews, may be hired on a contingency basis to complete a specific job. On-call employees may have a longer contract period than other contingency employees, but may still qualify for contingency status based on the limited hours of actual work available.
Some companies find it economically sound to offer contingency jobs in lieu of traditional full-time jobs. A farm, for example, might not need 50 workers all year round, but might desperately need 50 workers during harvest time. Using emergency jobs can help cut down on unnecessary expenses by ensuring that wages are only paid when work is needed and completed.
Unfortunately, some research shows that temp contracts are often used to circumvent employers’ tax and contribution requirements and can take advantage of workers who desperately need a job. Unscrupulous employers may keep a contingent workforce on staff full-time, but only offer a series of short-term contracts rather than transitioning to full-time contracts. This method allows the employer to avoid contributions to social security, health benefits or worker’s compensation funds.
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