What is the relationship between contractor and principal employer?

The relationship between a contractor and a principal employer is typically defined by a contractual agreement where the contractor is hired to perform specific tasks or services on behalf of the principal employer. The principal employer retains overall responsibility for the work environment and compliance with labor laws, while the contractor manages the day-to-day operations and execution of the project. This relationship can involve shared responsibilities, but the principal employer ultimately holds liability for the contractor's actions related to the contract. Clear communication and defined roles are essential to ensure a successful partnership.