What are self-employed individuals hired on a contract basis for specialized services called?

Self-employed individuals hired on a contract basis for specialized services are classified as independent contractors. This designation implies that they operate as separate business entities, rather than being employees of a company. Independent contractors typically have the autonomy to determine how to perform their work and often provide specific services based on their expertise or skills for a set period or project. This arrangement allows businesses to tap into specialized skills without committing to a long-term employment relationship.

The distinction from other options is significant. For example, while consultants and freelancers may indeed provide specialized services, the term "independent contractors" is more precise in the context of legal definitions and labor classifications. Temporary employees, on the other hand, usually work for a company under the employer's supervision for a limited time, but they maintain a traditional employment relationship, which differs from the self-employed nature of independent contractors.