What best describes a contract employee?

A contract employee is best described as an individual who operates under a formal agreement between the employer and the employee that outlines specific terms of employment. This typically includes details such as job duties, pay rates, duration of employment, and other conditions that both parties agree upon. Such contracts provide clarity and legally binding guidelines for both the employee and the employer, ensuring that there is a mutual understanding of expectations.

While some might think of a contract employee as having flexible hours or being temporary, these characteristics can vary widely and are not defining features of contract employment. Additionally, the absence of benefits is not a universal trait of contract employees; some contract employees may have negotiated specific benefits within their agreements. Lastly, a fixed salary is often associated with full-time employees rather than contract workers, who are typically paid based on the terms set forth in their contract, which may or may not include fixed salaries.