A legal situation where both a subcontractor and a client company share employer responsibilities over a worker. This creates liability risks around benefits, termination, and labour standards if boundaries aren't clearly defined. Subcontractors should maintain clear contracts and independent operating practices to avoid unintended co-employment claims.
Co-Employment
Related Terms
Job Openings Rate
WorkforceThe 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.
Geofencing
WorkforceA virtual boundary set around a job site that triggers automatic alerts when workers or equipment enter or leave. Subcontractors use it to verify on-site attendance, automate timekeeping, and support accurate billing. It also helps clients confirm crew deployment without manual check-ins.
SPARK (Spreading Prosperity and Advancing Resilience With Knowledge)
WorkforceA federal initiative aimed at strengthening economic opportunity and business resilience for trades and service contractors. It supports workforce training, skills development, and financial stability programmes. Subcontractors may access funding or resources through SPARK to grow capacity and weather market downturns.
Industrial Action
WorkforceOrganised work stoppages or slowdowns by unionised labour, such as strikes or lockouts, that can halt site operations. Subcontractors may face project delays, contract disputes, or force majeure claims as a result. Review your MSA carefully for provisions covering liability during third-party industrial action.
Fissured Workplace
WorkforceA jobsite where work is performed by multiple layers of subcontractors rather than direct employees of the site owner. For field service companies, this means accountability, liability, and payment flow through several parties. Subcontractors must track their position in the contracting chain carefully.
Spare Capacity
WorkforceThe portion of a subcontractor's available workforce, equipment, or service hours that is not currently committed to active contracts, representing untapped revenue potential that can be offered to clients on short notice or used to absorb surge demand without turning down work.
Latest Workforce News
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4 days agoWorkforceShrinking Labor Force Caps How Much Work Contractors Can Staff
Indeed Hiring Lab data shows the U.S. labor force shrank by about 700,000 workers in 2026. A Construction Executive column argues labor capacity should now drive bid decisions.
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