What is the difference between employment and civil law contracts?

Press service of the State Tax Service of Ukraine, published 22 December 2023 at 09:30 Chapter: News

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

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

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

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

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

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

- standard working hours;

- hospital days;

- paid weekends and holidays;

- protection against illegal dismissal, etc.

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

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

Amount of remuneration and payment term 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.