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.
Vertical Joint Employment
Related Terms
Journeyman
WorkforceA tradesperson who has completed an apprenticeship and holds a recognised certification in their trade. Subcontractors often bill journeymen at a higher labour rate than apprentices. Many project specs or collective agreements require a minimum ratio of journeymen on site.
Spot Capacity
WorkforceAvailable labour, equipment, or service bandwidth that a subcontractor can deploy immediately without prior commitment. Primes often source spot capacity to fill urgent gaps during peak demand or project overruns. Rates for spot capacity are typically higher than contracted rates.
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.
Retention Bonus
WorkforceA lump-sum payment offered to keep skilled field workers or subcontractors committed through a project's duration. It is typically paid at a set milestone or project completion. Primes use it to reduce crew turnover during long campaigns or tight labour markets.
Crew Utilization
WorkforceThe percentage of available crew hours that are billable or actively deployed on a job. Low utilisation means workers are on standby or idle, cutting into margins. Subcontractors track this metric to assess workforce efficiency and bid future projects accurately.
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