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contract labour

industrial relations
Also known as: contracting
Written and fact-checked byThe Editors of Encyclopaedia Britannica
The Editors of Encyclopaedia Britannica
Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.
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contract labour, the labour of workers whose freedom is restricted by the terms of a contractual relation and by laws that make such arrangements permissible and enforceable. The essence of the contract labourer’s obligation is his surrender for a specified period of the freedom to quit his work and his employer. Other stipulations cover such matters as repayment of the costs of transportation, housing, training, and other expenses.

Contract labour has been based upon conditions of poverty and upon political and religious intolerance, and it is often expressed in penal codes. Historically, deception, kidnapping, and coercion have been used to obtain contract labourers, with contractual terms often reflecting the disadvantageous position of the labourer. Contract labour still carries implications of compulsion and unfairness, and conditions can approach slavery in their severity.

Indentured labour, one form of contract labour, was common in North America in colonial times. Its subjects were western European (mainly British) males and females. Some of the contracts were similar to apprenticeships, while the terms of others were harsh—usually imposed on criminals whose sentences were commuted if they agreed to colonial indenture. This practice is also known as indentured servitude.

The Editors of Encyclopaedia BritannicaThis article was most recently revised and updated by J.E. Luebering.