What term describes individuals or businesses that are not employees but perform tasks on behalf of a principal?

The term that best describes individuals or businesses that are not employees but perform tasks on behalf of a principal is "Independent contractors." These individuals or entities are distinct from employees in that they maintain a level of independence in how they accomplish the tasks assigned to them. They often operate under a contract that outlines the scope of their work, expected outcomes, and compensation, but they are not subject to the same level of control or oversight that employers have over their employees.

Independent contractors have the flexibility to decide how, when, and where to work, which allows them to manage multiple clients simultaneously and engage in various projects. This arrangement benefits both parties: the principal obtains services without the long-term commitments associated with hiring a full-time employee, while the contractor gains autonomy and the potential for a diverse range of work opportunities.

Contrastingly, temporary staff typically refers to those who are hired for a limited duration and function similarly to employees, despite their short-term role. Consultants offer specialized advice and might operate independently, but they often do so within the framework of an advisory relationship rather than undertaking tasks that are directly executed. Support staff, meanwhile, generally implies employees who assist other employees within an organization, further highlighting the employment relationship. Thus, the term "Independent contractors