What the distinguishing factor between 'contract of service' and contract for service?

Answer 1

The distinguishing of contract of service and contract for service is importation different legal terms under different master.

contract of service

employee and employer both side need to contribution the MPF

employee subject to salary tax

entitle claim under "EO" benefits

employer subject liability for tort

under "EO" protection

claim the salary base the "EO"

contract for service

MPF contribution by (S)he

subject to profit tax

need to obtain "BR"

all gain / loss take by own

claim the receiable by court

Answer 2

Contract of Service versus Contract for Services

Legitimately, an "employee" is utilized under an 'agreement of administration' and is liable to the supervision, control and course of the employer in regard of the route in which the work is to be finished. The matter of control by the employer over the employee has been underscored by the Courts just like the imperative consider choosing whether the relationship of employer and employee exists. It is therefore essential to comprehend the implications of 'supervision, heading and control' for the reasons for these rules, as the presence of these key criteria will in all likelihood set up an agreement of administration and the supplier as an employee.

An outline of the tests that can be utilized to recognize an 'agreement for administrations' and an 'agreement of administration' is set out in the table beneath.

There are no strict guidelines that can be connected in regard of the assurance of an 'agreement for administration' versus an 'agreement of administration'. The matter of "control" will dependably be imperative in spite of the fact that not the sole integral figure deciding an agreement of administration where individual administrations are being provided. In the Ashenheim versus Magistrate of Income Tax (1970) case one of the matters the citizen (Sir Neville Ashenheim) tried to build up was that he had an agreement for administrations (that is, he was independently employed). This was rejected. One of the feelings conveyed in this extended case, which went the extent that the Privy Council, was that "in spite of the fact that the obligations of the diplomat were not expressed in the letter of arrangement it was notable that the performance of the obligations as a minister was liable to the 'course and control' of the administration".

Answer 3

Contracts of Service-contract between employer and employee

Usually a continuous relationship

A duty of care is owed to employees, as the employer

The employer is generally liable for the vicarious acts of employees

Protective legislation applies to the contract

Contract for Service-contract between contractor and client.

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

Answer 4

Probably best illustrated by the following example:

1) We agree to a CONTRACT for me to clean your company's floors for a six month period. That is a contract for service - I render the service and you pay me, and at the end of the six month contract we part ways.

-OR-

2) You can offer to EMPLOY me to clean your floors for the next twenty years - I am your employee - I work for YOU. Our "contractural" arrangement is governed by - and the conditions of my employment are covered under - the state's labor laws

Answer 5

From my experience Contract of Service is telling you the terms and conditions BEFORE you sign and before you begin a service (like e-mail or other online services) and Contract for Service is AFTER you receive a service (like a plumber or CPA).

I'm not an attorney, so it might be good to ask a lawyer in your area.

Answer 6

can anyone help me with the question what it actually means, just a little summery of how i can start it and what information to look for. Soo confused

The tasks which people carry out and the contexts in which they do so daily become so much more numerous, more diverse and more sophisticated that no one test or set of tests is apt to separate contracts of service and contracts for services in all cases.’
(The President of the Methodist Conference v Parfitt [1984] ICR 176)

Discuss

Answer 7

A contract of employment is an agreement between an employer and its employee about the terms of employment. A service agreement is an agreement between a business and its client about terms of the provision of services.