The state of performing incomplete or poor quality work for pay. For example, suppose a video editor is hired to produce five 10-minute videos. If the client receives four two-minute videos, the video editor may be non-compliant with regard to the contract. Non-compliance may be actionable.
Definition. An employee who works under contract for an employer. A contract employee is hired for a specific job at a specific rate of pay. A contract employee does not become a regular addition to the staff and is not considered a permanent employee.
How Contract Positions Work. Contract positions are employment arrangements that do not involve the same level of commitment as an employer-employee relationship. If you hire contract workers, you are not required to pay employment taxes on the hours they work as you would for a regular employee.axes. A contract worker is responsible for paying his own taxes. You do not withhold taxes from his paycheck, and you do not pay employer contributions for his share of Social Security and Medicare, or employment taxes such as unemployment insurance and industrial insurance.