Contract for services

By a contract for services, the contractor undertakes to carry out some kind of work and the customer undertakes to pay remuneration therefor. The contract of services shall describe the work to be provided, specify the remuneration and the term of the work.

A person working by a contract of services has no right to the holidays provided by the Employment Contracts Act (like base holiday, study leave). At the same time the employee carries out work at a freely selected time but on time.

A thing produced as work shall be delivered to the customer by the contractor. The work shall comply with the terms of contract and the contractor shall bear the risk of accidental loss until the delivery. If work does not conform to the contract, the customer may give a chance to improve the work or perform a substitute work.

The customer does not have to pay for the work before he or she has had a chance to examine the thing, unless the agreed way of delivery or terms of payment do not give him or her such a possibility.

Compiled by: Labour Inspectorate