This is an employee hired to the employer by an employment agency to an organization, or obtains a job personally, on a fixed term or conditions. A contract employee is usually hired on a daily basis or for the length of a particular project.

Contract work can be helpful in filling gaps between regular jobs. It also helps manage finances, and in some cases adds skills to the CV. Contract work in some professions, like IT, is also helpful in maintaining currency of work experience, and helps in establishing professional and employer contacts.