Contract for Services definition

A contract for services is a formal, legally binding agreement before a business and a self-employment individual. It differs between an employment contract – known as a contract of service – which is between an employer and an individual who then becomes employed by the company.

The difference is between service and services – self-employed people provide a finite amount of work while an employed person is in effect providing themselves permanently.

The division between the two also distinguishes between those who gain rights via employment and those that don’t. Self-employed people don’t typically gain employment rights/benefits, such as pension schemes, because they are expected to pay for these provisions themselves.