Contract For Services
Contract for services are agreements essential for professional and small term business relationships. These agreements are between the parties to undertake some work (for example, consultancy, paint house, etc). Such contracts contain a number of terms and conditions which must be clearly defined and agreed upon. They set out the service that is provided and also the expectations, requirements and obligations for both service provider and customer. Any breach of the terms can result in legal proceedings either to service provider or the customer.
Contracts for Services and Contracts of Services
Often people get confused about contract for services and contract of services.
The term:
- contract of service relates to a person in employment (as in the case of a domestic servant who is described as being "in service")
- contract for services" relates to a person who is self-employed and who provides services to clients.
The distinction between two is of great importance in establishing a worker’s legal status. A worker engaged under a contract for services will not have the same employment protection that a worker employed under a contract of service, (i.e. an “employee”) will have because much of the current legislation relating to employment protects “employees” only.
Furthermore, a self employed person will be responsible for his own tax and national insurance contributions. Employers will not have to pay tax or national insurance contributions of workers under contract for services.
Rights and Benefits under Contract for Services
Services providers do have certain protection and rights which are enjoyed by all. These are as follows;
- No discrimination on the grounds of race, sex or disability;
- A safe and healthy working environment at client’s premises, where applicable;
- To be paid at least the national minimum wage free of any unlawful deductions;
- Statutory paid annual leave;
- Statutory maternity/paternity and adoption pay, subject to fulfilling certain qualifying conditions.
A well-designed contract for service certainly protects your position. Net Lawman provides simple service contracts which ensure proper protection of worker’s rights
Details in the Contract
Usually, various terms and conditions or clauses are common in contracts for services. However, each contract will be different and will depend on the type of service offered. A good contract should include:
- The names and addresses of both service provider and the customer.
- The type of service provided.
- Territory/geographical coverage
- The contractor’s status, whether working for an outside agency or not.
- Payment terms and frequency of payment.
- Pricing adjustment (for example annual increases linked to suitable index)
- Term - period of agreement
- The date of commencement of the services.
- Limitation of liability.
- Details on breach of contract.
- Prevailing laws
- Confidentiality
- Renewal of contracts.
- Termination of contract and force majeure
- Signatures and witnesses
There will always be a number of terms and conditions that will be specific to each service provider. Net Lawman has the largest selection of legal document templates which covers and helps every sort of service provider (for example, self-employed builder, plumber, consultant, roofer, electrician, brick layer etc)
Can a Service Provider Hire an
Sometimes a service provider fails to meet the customer requirement and, hence, hires an outside agency to provide the services. This should be stated in the terms and conditions and should in no way infringe on the customer’s basic rights. Any contract that looks to override a customer’s basic rights can be deemed unenforceable in the eyes of the law.
Therefore, it is important to clearly define each clause of contract so that service provider may enforce the contract for any loss sustain by him.
Changing the Contract at a Later Date
Original contracts cannot be changed once the terms and conditions have decided among the parties. However, if a service provider wishes to make a change to a contract, it can only be done with mutual consent of the parties. This will be entertained as an amendment to the original contract.
That is why it is important to get qualified advice in drawing up the detail and wording of the contract document, especially if the services contract is of a substantial nature, or carries potentially large liabilities.
Disputes and Breaches of Contract
Disputes may arise over the terms of the contract. If any term of the contract is broken, it will be considered as a breach of the contract, and the matter can be taken to the legal courts. In some cases, the contracts will be the only legally binding record available. Therefore, the contract for services is the best way to determine the services and expectations between the parties.
Breach of contract must be taken seriously because service providers, under contracts for services, have far fewer employment rights and more financial risk then regular employees. Therefore, it is a wise move for any service provider to take legal advice when drafting any type of contract for services
For the newly self employed person, the range of contracts available can be bewildering. However, Net Lawman has all sorts of sample templates and contract examples. Moreover, its expert team of Solicitors and Barristers helps to draft the final document.
