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Unit 14 - P3
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99237273James Tilley
Unit 14 – Aspects of Employment Law
P3 – Identfy tte difeeences between conteacts of employment and
conteacts foe seevices
A contract of employment is an agreement in which an individual consents to perform jobs, as
directed by an employer, in exchange for an agreed salary or wage. These contracts do not need to
be written, however, it is preferable for them to be, as well as them not having to be signed, as an
implied contract is entered into when the employee beings their role, however, this should also be
signed by both partes involved.
These contracts include an employees employment conditons, rights, responsibilites and dutes to
perform.
Alternatvely, a contract for services is a legally binding agreement between a business and a self
employed individual. This difers from a contract of employment due to the latter being between an
employer and individual, rather than a business and self-employed individual.
Diferent from a contract of employment, a contract for services involves the self employed
individual providing a certain amount of work, whereas a contract of employment tends to be more
permanent. Furthermore, self employed workers under a contract for services do not tend to gain
the same benefts as those who are employed by a company. These lack employment rights, such as
a pension, as well as sick days and annual leave days, as they are expected to pay for these
separately themselves.
Example of a Contract of Employment Example of a Contract for Services
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