Contract of Service and Contract for Service – Service agreement – Service contract
Contract for services/ Hire agreement
A contract for service is an agreement that is entered into by the company with a third party for availing services. The third party is an independent service provider, not an employee of the company. The third party is not entitled to the benefits that the employees of the company receive. The company does not exercise direct control over the third party.
Examples include the services of a photographer, the services of a content writer etc.
Contract of services / employment contracts
A contract of service is an agreement that is entered into by the company with an individual for availing of his or her services. The individual here is an employee of the company and is entitled to the benefits that the employees of the company receive. In this case, the company enjoys control over the work created by the employee and the employee is bound to obey the orders of his employer. Examples include Government employees of the State.