What is the difference between employment and civil law contracts

Press service of the State Tax Service of Ukraine, published 04 September 2023 at 09:28 Chapter: News

Employment contract is agreement between employee and employer. The latter can be a company, individual-entrepreneur and even individual who hires, for example, a driver or a babysitter.

Under employment contract, you undertake to perform work specified in the contract and employer undertakes to pay salaries for this and to provide decent and safe working conditions provided for by the labor legislation. You must be provided with a workplace, equipment, personal protective equipment, etc.

Importantly! Employment contract regulates process of performing work in a certain specialty, qualification or position, and also requires compliance with rules of internal labor regulations.

On the one hand, employee depends on the employer. If you want to take a vacation, stay at home due to family reasons, go to the doctor during the working day, you must get permission from your manager.

On the other hand, employee has a number of social and labor guarantees:

- regular payment of labor – at least twice a month;

- standard working hours;

- sick leave;

- paid weekends and holidays;

- protection against illegal dismissal, etc.

Under the civil law contract (agreement), there are no employers and employees. There is an executor who undertakes to perform certain work or provide service and a customer who accepts work and pays for it.

Such mutual relations can be concluded between any legal entities or individuals and are regulated by the Civil Code of Ukraine. Labor legislation does not apply to them.

Subject of the contract is the end result, not the process of achieving it. Both sides are independent and equal. Customer does not have to take care of working conditions, provide workplace and equipment, pay for sick leave. Contractor independently organizes work and is responsible for its timely completion.

Size of the remuneration and the term of payment are determined by the agreement of parties, not by legislation.

Usually, the civil law contract is concluded for performance of the one-time, not systematic works.