The Glossary
Contracting/ Contractor
Contracting refers to a business arrangement where one party (the Client) engages another party (the Contractor) to perform specific tasks or activities on its behalf.
Key distinctions:
The contract is about delivering the desired Result. It is NOT about hiring worker(s).
The Contractor is responsible for the workers who are sent to carry out the work. These workers/ employees remain under the (employment) contract, control, and direction of the Contractor.
Elaboration
Caution
Misclassification
Misclassification can occur if service agreements resemble employment or hiring-out contracts.
The distinction between these forms is crucial because different rules apply to each scenario.
Subcontracting
A written subcontracting agreement may be mandatory depending on the national law of the host member state.
What's crucial is that there must exist a "will to subcontract". If a contract explicitly forbids subcontracting, there is no way to enforce the right to subcontract without an agreement.