Comparative Study of Employment Contract and Contracting

Abstract

Employment contracts and contracting agreements are two types of legal entities pertaining to the lease of persons. Despite their similarities, each has its own specific characteristics that distinguish them from one another. The most important difference lies in the fact that in an employment contract, the worker is entirely subordinate to the employer, whereas this is not the case in a contracting agreement.  In the latter, the contractor independently manages the work and delivers it to the client upon completion. This article attempts to highlight the criteria for distinguishing between these two types of agreements and to explain the benefits and outcomes associated with each.