Supreme Court specified the differences between employment and service agreements

Jun, 25 2018

In one of the last cases RF Supreme Court compared employment agreement and service agreement. The Court specified the following differences:


Purpose of the agreement

The main purpose of employment agreement is a systematic work performance. Service agreement purpose is execution of agreed task by a certain date.


Subject matter of the agreement

The subject matter of employment agreement is performance of labor function as a process. The subject matter of service agreement is a particular result of a service.


Status of an employee / service provider

Service provider has full autonomy. At the same time employee is under the control of employer, he is integrated in staff structure and should comply with working schedule.


Risk allocation

Provider under service agreement renders the service at his own risk. Employment relations, as a rule, mean that employee’s financial liability is limited.


In case of use of service agreement instead of employment agreement company may be fined up to 100 000 rubles.