What is Subcontracting?

Subcontracting refers to a situation in which a main contractor hires other individuals to perform a certain amount of work or specific tasks in a project. The main individual who undertakes a contract with a company (the general contractor) assigns some part of the work to another person (the subcontractor).

The subcontractor is generally considered an independent contractor rather than an employee. This determination is based upon the level of control exercised by the independent contractor or the autonomy granted to the contractor.