A labour chain refers to a ‘chain’ of workers, producers and contractors that correspond with a supply chain. Much like supply chains, labour chains often operate transnationally. For example, workers may be hired by a contractor in one country to work at a production facility in another

A labour contractor is an intermediary that matches job seekers with employers, getting commission from either the employer or worker. Labour contractors may take on a variety of roles that go beyond connecting workers to employers, such as overseeing housing and transportation (if the workers are migrants) or managing and training the workforce. Labour contractors vary between those which are formally registered companies and contractors which are informal, operating outside of legal employment relationships. Labour contractors have been key actors assisting lead firms in outsourcing risk and increasing the flexibility of their workforce.