While subcontractors and employees on the surface are similar, their roles are quite different.
An employee has an employment contract with an employer and is expected to work regularly, whether it’s casual, part-time, or full time. Employees are on the payroll and sometimes have access to employment benefits such as paid leave and pension plans.
A subcontractor, on the other hand, is a business entity that is explicitly hired to fulfill a service. A subcontractor will invoice a contractor for the work they conducted during a period. Subcontractors may work with multiple contractors and are not entitled to employment benefits.