What are the terms and condition of contract of employment and contract for service?
The terms and conditions of employment are what, under the Employment Rights Act 1996, you have to be given within two months of commencing employment. A contract of employment is a relationship as it would be defined by an employment tribunal and, usually but not always, as it would be defined by the parties involved in the relationship. Example – you come to work for me as a taxi driver and we agree that it’s going to be a contract for service i.e. you’re going to be self employed. The reason we’re going to do that is that you won’t have to pay income tax and I won’t have to pay national insurance or holiday pay to you and we both benefit. The taxman comes along annoyed at us both and takes both of us to court to prove that the REAL relationship is not a contract for service at all but rather a contract of service, which means that you’re employed by me. The taxman will use a range of things as evidence – for example he might say that the car belongs to me, I pay all the costs and yo
