Understanding Contract Labor vs. Outsourcing: Does the Contract Labor Act Apply?

gajendra_singh80
I would like to understand the difference between contract labor and outsourcing.

Application of the Contract Labor Act

Furthermore, does the Contract Labor Act apply to outsourcing as well? If yes or no, please provide an explanation. Please assist me.

Thank you.
Haque M
The basic difference between contract and outsourcing labor is as follows:

Contract Labor: When a laborer is employed directly on a contract basis (job basis/time-wise, etc.).

Outsourcing: When a company makes a contract with another company/firm to supply the labor to complete a certain job for a specified period.

Regards, M. Haque
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