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Many contractors find it more efficient to hire subcontractors instead of employees. Unlike employees, subcontractors aren't entitled to unemployment benefits or workers compensation, and subs are only paid when their skills and abilities are needed. Also, hiring a subcontractor is often the only way to obtain specialized expertise and equipment, and to benefit from special licenses not available to you and your employees. But there's another significant difference that can be a problem. It comes into play when the general contractor is dissatisfied with the work being done. If a contractor finds himself working with an underperforming subcontractor and wants to end the relationship, he cannot simply fire him. A subcontractor is not an employee. Cancellation. When a contractor "fires" a sub,