A contract employee, also known as a contract worker or a temporary employee, is an individual who is hired by a company or organization to work on a specific project or for a specific period of time. They are not considered permanent employees and their employment is based on a contract that outlines the terms of their employment.

Contract employees are typically brought in to fill a specific need or to provide expertise that is not available within the company. They are often used to fill short-term or project-based positions, such as for a specific project or for a specific season. Their employment may also be based on a specific number of hours or days, or it may be based on the completion of a specific task or project.

Contract employees are typically not eligible for the same benefits as permanent employees, such as health insurance, retirement plans, and paid time off. They may also have less job security and may not be eligible for certain types of compensation, such as overtime pay or severance pay.

It's important for the employer and the contract employee to clearly define the terms of their employment in the contract and make sure that both parties understand the responsibilities and expectations.