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.