Contract Of Service and Contract For Service – what is the difference?
Posted by Gillian Knight on Apr 6th, 2012 in CV Articles, Employment Law Articles, Interview Articles, Kala Links, Management Articles, Recent Updates | 0 comments
Contract Of Service and Contract For Service
The law makes a distinction between a contract of service and a contract for service.
Basically, a contract of service applies to an employee-employer relationship, while a contract for service applies in the case of an independent sub-contractor.
This distinction is most important as protection of employment legislation does not apply to independent subcontractors – with the exception of the Safety Health & Welfare At Work Act 2005 and the Equality Act 2004.
The following is a summary of the essential differences between the two sorts of contract.
Contracts Of Service
- Employer-Employee relationship.
- Usually a continuous relationship.
- A duty of care owed to employees, as the employer.
- The employer is generally liable for the vicarious acts of employees.
- Protective legislation applies to contract.
- Wages/Salary payment method.
- Subject of contract is to carry on continuous work.
- Employer-Independent Contractor relationship.
- A relationship organised around the completion of a once-off piece of work.
- A duty of care, arising from occupiers’ liability.
- The employer is generally not liable for the vicarious acts of independent contractors.
- In general, protective legislation does not apply, except for the Safety Health and Welfare at Work Act 1989 and the Equality Act.
- Various methods of payment, including lump sum per job.
- Subject of contract is once-off job.
For further details, please contact [email protected] or call 01 406 14 75.
Written by Gillian Donohoe MSc FCIPD, Managing Director, Kala Management Solutions Limited.