Difference Between Contract Between Service And Contract Of Service

2554 Words6 Pages

1.0 Introduction

Job is one thing that must be had by everybody to survive in life. With job we can get money to buy food, pay a rent and other else. There is condition that employer and employee agree for a job. The terms that have in employment include job responbilities work days, hours, breaks, dress code, vacation and sick days and pay. There is also benefit such as health insurance, life insurance and retirement plans. Employer that have extra skill or experience in related job that apply. This employees can demand for higher salary or other when negotiating terms of employment. Many employment contracts especially in United States for example are at will, this means either the employer or employee can make legally terminate employment …show more content…

This may lead disputes between the employer and the employee and inequity as regards what the employer expects of the employee. There are two options that available for employers when they offer employment. They are contract for service and contract of service. To some people, there is no difference between the Contract of Service and Contract for services, as long as they are employed. However, in essence, there are differences in both terms.

Butterworth Concise Legal Dictionary (Nygh & Butt, 1998) defines Contract of service as:

“a contract under which a person is engaged in the service of an employer to do such work as is contracted for and where the employer directs what it is to be done”

And contract for services is defined …show more content…

The whole total costs of legislation are higher in a large company than small business. On the other hand the potential impact on small businesses maybe greater. All businesses will need to follow equal opportunities policies when recruiting and other conditions of employment which may be known as 'good' employers by potential employees such as they may be able to attract more candidates. Overall terms and conditions are important as these give employers and employees where they stand. Dispute and argument can happen less due to what is on the terms and conditions such as basic pay, hours worked etc. It is also important to carefully draft the employee's statement of terms and conditions. This gives proper notice to the contract documents and employer can help himself with numbers of important right which could be an important value later on in the employment relationship. Finally employers need to know if they are fully utilizing their statement of employment which will help them to their benefits. Also the employer should make sure they avoid going to employment tribunal's as this can make then give compensation to employee and leave there business with a really bad

More about Difference Between Contract Between Service And Contract Of Service

Open Document