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Workforce Glossary Term

Back Wages

Unpaid earnings owed to workers for hours already worked. For subcontractors, this often arises from payroll errors, misclassification, or disputed overtime on remote job sites. Unresolved back wage claims can trigger labour audits and project holdbacks.

Related Terms

Utilisation

Workforce

The percentage of time your crew or equipment is actively deployed on billable work. Low utilisation means idle resources eating into your margins. Subcontractors track this closely to assess profitability and plan workforce levels.

Resource Adequacy

Workforce

A subcontractor's ability to supply sufficient labour, equipment, and materials to meet contract demands on time. Gaps in resource adequacy can trigger penalties or scope reductions from prime contractors. Subcontractors are often assessed on this before being awarded larger field service agreements.

Colocation

Workforce

When a subcontractor embeds personnel or equipment at a client's site for an extended engagement. This reduces mobilisation costs and improves response time for ongoing work. It is common on large construction or production sites requiring continuous support.

Utilization Rate

Workforce

The percentage of available working hours that crews or equipment are actively billable to a client. A low utilisation rate signals idle resources draining overhead costs. Subcontractors track this metric closely to assess profitability across projects.

Job Openings Rate

Workforce

The percentage of unfilled positions relative to total jobs in a sector at a given time. For subcontractors, a high rate signals strong demand for field crews and leverage in rate negotiations. It helps forecast labour shortages before mobilising for large campaigns.

Vertical Joint Employment

Workforce

A legal finding where both a subcontractor and a client company are considered employers of the same field workers. This exposes subcontractors to shared liability for wages, overtime, and labour standards violations. Regulators in oil and gas and construction actively scrutinise these arrangements.

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