What is Contract for services?

An agreement with a self-employed person for a specific job. It differs between an employment contract (contract of service) which is between an employer and an individual who then becomes employed by the company.

Employers have to set work and employees have to complete it in a contract of services, a contract for services works strictly on a business-to-business basis. Consequently, there are certain responsiblities that a client has to carry out when taking on a contractor and certain rights that a contractor has when working with a client. These must be clarified in the contract prior to taking on the job.

Provisions such as the services, payment, confidentiality and ownership rights must all be confirmed. This establishes a clear definition for standards for performance, additionally any legal obligations for the terms of the agreement can be determined.