Sub-contractors can be a useful and flexible tool for businesses that require specialist skills for a particular job or in other circumstances where a project needs a particular type of input, which would not be appropriate from a full-time employee. Nevertheless businesses should be careful in entering such arrangements as independent sub-contractors' rights, obligations and legal liabilities associated with the work undertaken differs from those of an employee. Should a court subsequently determine that the relationship between the parties was in fact one of employer and employee, significant penalties may apply.

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