Contract Of Service versus Contract For Service

Introduction 

The law makes a distinction between a contract of service and a contract for service. Basically, a contract of service applies to an employee-employer relationship, while a contract for service applies in the case of an independent sub-contractor. This distinction is most important as protection of employment legislation does not apply to independent subcontractors – with the exception of the Safety Health & Welfare At Work Act 2005 and the Equality Act 2004.
The following is a summary of the essential differences between the two sorts of contract.

Contracts Of Service

Employer-Employee relationship.
Usually a continuous relationship.
A duty of care owed to employees, as the employer.
The employer is generally liable for the vicarious acts of employees.
Protective legislation applies to contract.
Wages/Salary payment method.
Subject of contract is to carry on continuous work.

Contracts For Service

Employer-Independent Contractor relationship.
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.
In general, protective legislation does not apply, except for the Safety Health and Welfare at Work Act 1989 and the Equality Act.
Various methods of payment, including lump sum per job.
Subject of contract is once-off job.