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Contingent employment describes a type of employment where someone is hired on a temporary or contract basis, rather than as a permanent employee. This type of employment is also known as the contingent workforce, flexible work, gig work, or the gig economy.

Contingent employment can take many different forms, including temporary work, independent contracting, freelancing, and part-time work. In some cases, workers may be hired through staffing agencies, which provide temporary workers to companies on a contract basis.

Why would companies use contingent workers?

There are several reasons why companies may choose to use contingent workers. For example, they may need to fill short-term staffing needs, such as for a project that requires specialized skills or expertise. Contingent employment can also provide companies with greater flexibility in managing their workforce, as they can quickly adjust their staffing levels as needed.

Contingent employment can also provide benefits to workers. It can offer greater schedule and location flexibility, which can be attractive to those with family or other responsibilities. Contingent workers may also have the opportunity to gain experience and skills in a variety of different industries and roles.

The Risks of Contingent Employment

As the gig economy continues to grow, there has been increasing concern about the rights and protections of contingent workers. Some advocates have called for greater regulation of the gig economy, to ensure that workers are not exploited and that they have access to basic benefits and protections. This has driven the adoption and proposal of new laws and regulations that pose risks to staffing firms and other employers. Many of those risks are being taken on by Employer of Record services, like FoxHire, so that clients and staffing firms are protected.

In conclusion, contingent employment refers to a type of work arrangement where an individual is hired on a temporary or contract basis, rather than as a permanent employee. While there are benefits to both companies and workers in using contingent employment, there are also potential downsides that need to be carefully considered. As the gig economy continues to evolve, it will be important to find ways to ensure that contingent workers are treated fairly and have access to basic benefits and protections.

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