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(P3) Identify the differences between contracts of employment and contracts for services.

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(P3) Identify the differences between
contracts of employment and
contracts for services.

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Unit 14: Aspects of Employment Law


(P3) Identify the differences between contracts of employment and contracts for services.


Contract of Employment Contract for Service
Difference between Contract of employment is an Contracts for services are designed for
contract agreement made between an self-employed workers. Self-employed
employer and an employee. Such individuals are responsible for finding
contracts include: The employer their own work and are responsible to
telling the employee what tasks find someone else to replace them in
have to be done and how they have cases where the worker is unable to
to be done. The employee is paid by turn up and provide its client with an
its employer on a regular basis at a agreed service. Workers under
fixed rate. The tools and equipment contracts of service have to find their
required to carry out daily activities own tools, machinery and equipment
are provided by the required for specific services.
employer/organisation.
i.e. an electrician employed by the
i.e. teachers have a standard college and called in to work when
amount of hours that they work per there is something to be fixed, will be
day. Security of the college is treated as a regular employee however
provided with uniform and teachers instead of a salary will be getting a
are provided with equipment such wage where the wage rate will be
as laptops. multiplied by the amount of hours
worked per week or an agreed amount
of hours.


Status Both the employee and the Self-employers, supplying services are
employer have certain obligations responsible for their own insurance and
that they have to follow: these payments such as: tax and national
could be stated in two different insurance. The do not get paid holidays
terms: or sick days off, and choose the days
 Express Terms they want to work.
Such terms are stated in the
contract and are agreed on i.e. a self-employed worker, if unable to
between the employer and carry out the service will have to ensure
the employee when the to find a replacement.
contract has been signed,
making such terms valid.
 Implied Terms
Unlike express terms, these
terms are not always
mentioned in the contract in
a written form, however are
verbal agreements that can
be found in most contracts
of employment.

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