Contract For Service

ruthella
what is the difference between a contract for service and contract of service? you can use examples and authorities if you dont mind
nathrao
Contract of service

An agreement where one person agrees to employ another as an employee and the other agrees to serve his employer as an employee.

Employer is responsible for payment of wages,statutory deductions like PF,ESIC etc.

Employer has full control of employee-recruitment,dismissal,promotion etc

Employer has full control/ownership on factors of production.

Contract for service:

A contract for services,can be described as an agreement where a person is engaged as an independent contractor, like a self-employed person or vendor engaged for a fee to carry out an assignment or a project for the company. Under such a work arrangement, there is no employer-employee relationship.

many companies outsource conservancy services. The contractor concerned is on contract for a service-namely conservancy.

Contractor is responsible to pay his employees being deployed to compete main employers task.

Contract of service is often for long term,while contract for service may be for short duration or till a specifc job is completed.

I hope this helps.
umakanthan53
" Contract of Sevice " is the agreement whether explicit or implied between the employer and the employee. Thus the contract of service creates a substantial relationship between the one who provides employment and the one who accepts the employment thus offered subject to the control and supervision of the offeror and is the repository of the mutual rights and responsibilities emanating therefrom. " Contract for Service " is the expilicit agreement between the contractor and the contractee to perform a certain job or to provide a certain service by the former during a particular period of time to the satisfaction of the latter.
ruthella
well NATHRAO thanks for that yah i has helped but i think there is employee-employer relationship in contract for service am just thinking there is alot of confusion in those two terms
I. M. ANAND
Friends, in the above case a person employed for sanitary repair electric repair machinery repair etc. called on phone call for mere the particular work is employed for contract of service or contract for service. In the other words, employer is responsible for payment ESI PF etc. of such labour or not.
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