Differences between an employment contract and one for the provision of services – Personal Finance – Economy

Differences between an employment contract and one for the provision of services – Personal Finance – Economy

When being hired in a job it is very important to take into account the type of employment relationship to which you will access with your employeebecause there are differences in some agreements that must be taken into account before entering the companies.

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You may come across two types of contract: one labor and provision of services. These differ in relation to labor credits, that is, contributions to the System of Social Security, social benefits to which a worker is entitled and compensation by virtue of the termination of the employment relationship.

work contract

According to article 22 of the Substantive Labor Code, «this type of contract is one for which a natural person undertakes to provide a personal service to another person, natural or legalunder the continued dependence or subordination of the second and through remuneration.

In other words, the person hired must comply with the requests of his employer (subordination), it must be personal because the worker has the obligation to be responsible for his duties and sbe the beneficiary of a salary as well as other services that the contractors must supplywhich is it?

Contributions to social security, social benefits, transportation or connectivity assistance when appropriate, work-related disabilities, per diems, contributions to compensation fundsovertime or additional hours and vacations.

«The continued subordination or dependence of the worker with respect to the employee, which empowers the latter to demand compliance with orders, at any time, in terms of manner, time or amount of work, and impose regulations, which must be stabilized at all times. duration of the contract. All this without affecting the honor, dignity and minimum rights of the worker in accordance with the international treaties or conventions that bind the country on human rights related to the matter”, expresses the law.

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Contract to provide services

In Colombia, 2.5 million people work with a contract for the provision of services only in the public sector, which constitutes a different regime from those who have an employment relationship for an indefinite or fixed term.

Payment of fees in a contract for the provision of services.

It is important to recognize that a service contract is precisely a work agreement between two parties for the provision of a particular service by the worker. This type of contractual relationship is terminated when the service in question has been completed and the person who had been hired has received the remuneration that was agreed from the beginning.

According to article 34 of the Substantive Labor Code, this type of link has «the execution of one or several works or the provision of services for the benefit of third parties, for a certain price, assuming all the risks, to carry them out with your own means and with freedom and technical and managerial autonomy”.

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In other words, you must not comply with the schedule and your functions can be performed without being under a subordinate regime such as the employment contract. For his part, The contracting party is not obliged to affiliate the contractor or EPS, or a pension and severance fund administrator, nor to the family compensation fund; These expenses must be paid by the worker.

Since the payment is part of the fulfillment of a service or delivery of a good, those who work in this modality do notor are entitled to paid vacations, as it happens with the employment contract; in part because as a contractor you have independence and freedom of schedules to do the hired labor.

It must be remembered that if a contract is established for the provision of services, there are no bonuses for nighttime surcharges, Sunday work or holidays.

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By Mitchell G. Patton

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