Occurs when two unrelated companies — such as a labour agency and a subcontractor — are considered co-employers of the same worker. Both parties may share legal responsibility for wages, overtime, and labour standards compliance. Field service firms must understand this to avoid unexpected liability for workers hired through third-party staffing arrangements.
Horizontal Joint Employment
Related Terms
Labour Burden Rate
WorkforceThe total cost of employing a field worker beyond their base wage, expressed as a percentage. It includes CPP (Canada Pension Plan), EI (Employment Insurance), WCB (Workers' Compensation Board) premiums, and benefits. Subcontractors must factor this rate into crew pricing to avoid underbidding contracts.
Field-to-Office Ratio
WorkforceThe number of field workers supported by each administrative/office employee. A ratio of 10:1 is common for paper-based operations; digitized operations often achieve 30:1 to 40:1.
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.
Floater
WorkforceA skilled tradesperson or technician not assigned to a fixed crew or project, deployed where needed on short notice. Subcontractors often bill floaters at a premium rate due to their flexibility and quick availability.
Utilization Rate
WorkforceThe 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.
CLRC (Construction Labor Research Council)
WorkforceA U.S. research organisation that tracks and publishes construction labour wage rates and collective bargaining data. Subcontractors use CLRC reports to benchmark labour costs and support bid pricing on union projects.
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