When providing an employment contract to staff or contractors, the differentiation between a 'Contract of Service' and a 'Contract for Service' hinges on the employment or service arrangement and the relationship between the involved parties.
| Contract of Service | Contract for Service | |
|---|---|---|
| Definition | The employee follows the employer's guidance & instructions in carrying out their work. | The service provider who is providing services to clients |
| Relationship | Employment | Contractor |
| Level of control | Working hours are specific | No specified working hours |
| Remuneration | Wages | Service fee per job basis |
| Contribution |
- Paid leave |
- NIL |
| Substitute Staff |
|
|
| The Employment Act |
|
|
| Tools Provide |
|
|
| Risk share |
Share profit but no risk |
Share profit and risk |
| Tax payable |
By employer |
Own responsible for own tax |
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