Legal Question in Consumer Law in India

contract

what is contract of service


Asked on 7/30/07, 6:15 am

6 Answers from Attorneys

Alok Sharma Alok Sharma & Associates

Re: contract

I feel insulted when people put such questions.

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Answered on 7/30/07, 9:17 am
deepak sharma DeePLegaL

Re: contract

There are two common law terms regarding to contract. One is “contract of service” and another one is “contract for service”. Both the terms are used to distinguish employees from persons who are self-employed.

• The term "contract of service" relates to a person in employment (as in the case of a domestic servant who is described as being "in service")

• The term "contract for services" relates to a person who is self-employed and who provides services to clients.

A person who works under a contract for services, i.e. a self-employed person, is neither an employee nor a worker.

How, then, are these two terms to be distinguished? Traditionally, there are two key tests to identify an employee, i.e. a person who works under a "contract of service".

These are

1. "mutuality of obligation", i.e. both parties to the contract have obligations to each other, the employee to perform work as directed, the employer to pay for the work performed

2. the "degree of control" exercised by the employer over the work performed by the employee.

3. the nature of the pay and benefits that are provided by the employer

4. whether or not the individual has a business structure

5. who decides on how the contract should be performed

6. the extent of the financial risk borne by the individual

7. who provides the materials and equipment necessary for the work..

If this explanation does not answer your question, please contact us for further legal research and consultancy at [email protected] and explain what it is that you still do not understand.

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Answered on 7/30/07, 12:15 pm

Re: contract

Contract of service is relating to service/employment/jobs/professional services etc.

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Answered on 7/30/07, 2:15 pm
Rajendra Babbar Rajendra Babbar & Associates

Re: contract

it is a contract for providing personal service.

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Answered on 7/30/07, 10:42 pm
G. M. Gupta gmguptaandassociates

Re: contract

a set of mutually agreed terms and conditions for providing any kind of service.

For further detailed advice please contact in person. Consultation charges of rs 500/- shall apply.

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Answered on 8/01/07, 4:45 am
Homi Maratha N.N. Maratha & Co.-Advocates

Re: contract

your service tenure

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Answered on 7/30/07, 7:26 am


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