Contract of Service and Contract for Service
Why is it important to distinguish between persons that are employed and self-employed?
How do the relevant bodies approach the problems of distinguishing between the two?
It is important to Employment law to know who is an employee and who is an employer for the purposes of claiming unfair dismissals and statutory redundancy. The Employment Rights Act (ERA) of 1996 defines an employee as “an individual who has entered or works under (or, where the employment has ceased, worked under). The ERA defines ‘contract of employment’ as “a contract of service or apprenticeship, whether express or implied, and (if expressed) orally or in writing. The variance between the two is Contracts of Service and Contracts for Service.
To begin with, the difference a Contract of Service is, where an employer and an employee have a relationship that is continuous. The employer has a duty of care to its employees, for example to, work in a healthy and safe environment. The employer is liable for the vicarious acts of employees. There is protective legislation that applies to the contract and which the employers have to follow or the employer could be prosecuted if not followed.
Secondly, a Contract for Service is where the employer is an independent contractor, and the relationship is organised around the completion of a once off piece of work. The duty of care arising from Occupiers Liability Act 1995 “is to ensure that a visitor employee does not suffer injury or damage by reason of any possible that exists upon the premises which the person is working”. The employer is generally not liable for the vicarious acts of the independent contractors. In each of these contracts both parties have specific rights and responsibilities, which differ according to the contract in place.
It is not always easy to define who is an employee or an independent contractor and has frequently come under legal consideration. The courts will look at the factual situation and deicide as a
How do the relevant bodies approach the problems of distinguishing between the two?
It is important to Employment law to know who is an employee and who is an employer for the purposes of claiming unfair dismissals and statutory redundancy. The Employment Rights Act (ERA) of 1996 defines an employee as “an individual who has entered or works under (or, where the employment has ceased, worked under). The ERA defines ‘contract of employment’ as “a contract of service or apprenticeship, whether express or implied, and (if expressed) orally or in writing. The variance between the two is Contracts of Service and Contracts for Service.
To begin with, the difference a Contract of Service is, where an employer and an employee have a relationship that is continuous. The employer has a duty of care to its employees, for example to, work in a healthy and safe environment. The employer is liable for the vicarious acts of employees. There is protective legislation that applies to the contract and which the employers have to follow or the employer could be prosecuted if not followed.
Secondly, a Contract for Service is where the employer is an independent contractor, and the relationship is organised around the completion of a once off piece of work. The duty of care arising from Occupiers Liability Act 1995 “is to ensure that a visitor employee does not suffer injury or damage by reason of any possible that exists upon the premises which the person is working”. The employer is generally not liable for the vicarious acts of the independent contractors. In each of these contracts both parties have specific rights and responsibilities, which differ according to the contract in place.
It is not always easy to define who is an employee or an independent contractor and has frequently come under legal consideration. The courts will look at the factual situation and deicide as a