prior to collective bargaining for a new labor contract, both the management and the union members of a shoe factory decide that it is important that they discuss the issue of the employment of contingent workers in the organization. both parties thereby include it as a negotiable point for the bargaining session that, if agreed upon, will be entered into the new contract. this point of negotiation falls under the category of .

Freelancers, independent contractors, consultants, or other outsourced and non-permanent employees employed on a project-by-project basis are referred to as contingent workers. They may operate locally or remotely. They are not only temporary employees, though; this minimises the complexity and high value of the current contingent workforce. Contingent employees are highly accomplished professionals in their specialties. These employees are employed in accordance with a statement of work (SOW) requirement to carry out certain tasks. When the job is over, they depart, though they might be contacted again if a new project comes along. As a result, they are not business employees, and the owner has no obligation to offer them consistent employment on a permanent basis.

What is the advantages of a Contingent Workforce?

The benefits of a contingent labour are mostly financial for business owners. They are exempt from having to deduct taxes from employee paychecks and pay them. They are not required to provide overtime pay, paid sick days and vacation days, or health benefits. This enables them to save on administrative costs related to payroll and human resources, in addition to the large money they would have spent on searching for and hiring permanent staff.

Increased flexibility is a benefit of the contingent labour as well. A contingent worker can be hired to handle the extra work when there is a sudden increase in work or when an urgent project pops up.

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