What is the difference between an employment agreement and a contract?

The concept of “contract” or “agreement” is quite often found in labor and federal legislation as a definition related to labor relations. Initially, agreements were oral agreements between interested parties. And contracts implied the written signing of a document stipulating all the terms of the transaction or employment relationship.

In the Soviet Union, no special distinction was made between these concepts. But in the new Russian labor legislation, the word “contract” was replaced in all its references by “agreement”.

In the broad sense of the word, a contract can be considered both an oral and a written transaction. There is practically no legal difference between an agreement and a contract. However, there are still differences, and they are associated with the wording that is used in legal and regulatory frameworks.

The definition of a contract can be found in Article 56 of the Labor Code.

According to such a written agreement, the employer and employee undertake certain obligations and at the same time receive rights, also enshrined in the document. For example, the manager undertakes to ensure timely payment and working conditions in the workplace that meet all requirements.

And the employee must not violate the internal regulations of the organization or enterprise, and also conscientiously perform his job duties.

The concept of “contract” no longer appears in modern labor legislation, although it can still be found in certain thematic articles and books. This concept has been abolished in the Labor Code since 2002.

This concept should not be confused with those concluded on limited period! Contracts can be either fixed-term or fixed-term. For example, this document is signed with employees of law enforcement and military departments. And at the same time, it regulates open-ended employment relationships.

There is no prohibition in the legislation on signing contracts regulating labor relations. Accordingly, a document with this name is considered legal (although it does not appear in the Labor Code). This is evidenced by numerous departmental orders and regulations.

This document defines the rights and obligations of interested parties, indicates salary levels, prescribes rules for remuneration of employees and other important conditions.

What are the differences?

The Civil and Budget Code points to a contract as the main type of document required when concluding a transaction if one of the interested parties is the state. It clearly states the procedure for concluding and the conditions under which the transaction takes place. For example, such a document is concluded based on the results of a tender for the supply of goods for municipal needs.

But this type of contract in its legal status is close to (according to the Federal Law number 44, article 3, paragraph eight).

The Tax Code classifies contracts in the sphere of foreign trade relations(Article 165 of the Tax Code). If a deal is concluded to export goods outside the Customs Union, a corresponding contract is signed. Such a document allows the interested party to receive significant tax benefits (zero rate). Using the agreement in such cases would be inappropriate, since signing the agreement would lead to problems with the tax service.

Thus, the difference between contracts and agreements lies in the origin of the concepts themselves and the status of the interested parties signing the agreement.

As mentioned above, the concept of “contract” cannot be confused with a fixed-term type agreement. According to the validity period, contracts concluded to regulate labor relations can have both a limited (fixed-term) and unlimited (indefinite) period of validity.

Speaking figuratively, an agreement is a general concept, and a contract is just a type of such agreements used in certain situations.

For example, a contract may confirm the fact of hiring law enforcement officers, civil servants or career military personnel (contract service). In the case of , contract is used instead of agreement. The Law on Civil Servants directly states that a contract is concluded between the employer and the future employee of a state organization (Article 23 of the mentioned Law).

Or certain services or work may be performed under a contract. In this case, the contract is close in legal meaning to a civil law type contract. Such a contract has a certain duration and can't be. Its termination occurs based on the reasons specified in the document. And the employer has the right to additional incentives for the employee for excellent performance of his duties (the amount of incentive remuneration and the procedure for its payment are also specified in the contract).

Service contracts and employment contracts: differences

Service contracts are signed by the employer or his representative and a citizen entering the service (Federal Law No. 79, adopted in June 2004). Service can be both civil, carried out in various government organizations and structures, and military (or equivalent to it), carried out in the army, law enforcement agencies, fire and rescue units (in the Ministry of Emergency Situations).

The main differences between such a document and the contract concluded between employers and employees can be seen in the table:

When entering work, every citizen faces the choice of concluding an agreement or contract. In which case is it right to sign an employment contract, and in which case will you be offered a contract with a large number of conditions and clauses.

Before signing, the agreement or contract must be carefully studied in order to possibly add new conditions or disagree with the proposed points. All employment agreements and contracts are drawn up on the basis of labor legislation and other regulations to regulate industrial relations.

During the interview, the employer informs the new employee about working conditions, internal regulations, forms of remuneration, vacation, and sick leave.

The basis for concluding an employment agreement or contract is an application from a citizen with a request for employment.

Managers are in no hurry to conclude an agreement or contract; they offer to work first without registration for a certain time - a probationary period. This is against the law.

First, an agreement or contract is signed, in two copies for each party.

An employment agreement or contract comes into force from the moment the employee enters the workplace and performs his duties by order of this enterprise. Safety instructions and studying the job description against signature are necessary to get started.

If the terms of the contract or employment contract contradict the law, do not sign this document. After signing, the employee has the right to go to court and appeal this agreement.

The statement that an employment contract and a contract are unambiguous is not entirely true.

Contract translated from Latin means “deal”.

A contract is a form of agreement between the parties, prescribed by the terms of penalties for their violation. Failure to comply with the terms of the contract is punishable financially. There is no provision for voluntary dismissal. Financial liability for dishonest performance of a contract is one of the forms of compulsion to strictly comply with the terms. Disputed issues under the contract are resolved in court.

Duration of employment agreement and contract

The contract is concluded for a certain period; terms for prolonging the contract are possible, but not necessary. The signatures and seals of the parties give the document legal force. The parties agree to all terms voluntarily. Parties may be enterprises, firms, government agencies and individuals.

Top and middle managers and financially responsible employees are invited to work on a contract basis.

Ordinary employees are hired mainly under an employment contract.

Typically, an employment contract is for an indefinite period.

This document nominally confirms that this person has been hired for a certain position with a salary in accordance with the staffing table. The work schedule and working conditions are discussed orally and determined by contract. The ability to quit your job at your own request without paying a fine is the difference between an employment agreement and a contract.

If the employment contract is fixed-term, upon expiration of the contract, the employee’s dismissal should be formalized at the end of the employment contract.
The contract at the end of its term provides legal grounds for dismissal.

The end date of the contract, as a fact, is the basis for the dismissal order.
Dismissal at the request of an employee ahead of schedule involves penalties.

Dismissal at the request of the employer without legal grounds occurs with payment of compensation to the employee.
Dismissal at the request of the employer due to poor performance of one’s duties or violation of the terms of the contract.
Dismissal by agreement of the parties, as a peace agreement, removes the issue of material claims of the parties.
The company does not have the right to terminate the contract for a reason that is not specified. This is in contrast to an employment contract, where there are no such strict limits on what is permissible.

Payment under the employment contract and under the contract

A recruiting agency helps an employer and an employee find each other. An agreement for paid information services is concluded on the basis of an employment contract. The customer for a vacancy, or applicant, as he is later called, instructs the recruiting agency to provide information about a potential employer for a fee.

Remuneration under an employment contract corresponds to the level of qualifications and position held, is paid weekly, twice a month, or upon completion of the entire scope of work under the contract. Bonuses, payment for urgency, harmfulness, intensive working conditions or overtime work are possible, but are not always reflected in the contract.

Remuneration under the contract takes into account all the details and conditions of remuneration for irregular work schedules and for timely completion of orders. Penalties for dishonest fulfillment of job descriptions and violation of contract terms place the employee within a strict framework of basic requirements.

The contract is drawn up, carefully writing out the conditions, norms and rules of conduct. The amount of material remuneration for the employee, the amount of the bonus for good work. Penalties for any violation of the rules have a precisely determined amount. For minor violations, administrative measures are provided - a reprimand, a reprimand, a severe reprimand entered into a personal file. Gross violations of discipline, drinking alcohol in the workplace, negligent attitude towards one's official duties, violation of deadlines for fulfilling an order, such offenses lead to termination of the contract at the request of the employer and a fine.

The contract sometimes includes a separate clause about its extension for a new term if both parties are satisfied with the cooperation. Good specialists and conscientious workers are valued.

Contract work at the moment mainly means work not in accordance with employment contracts, but under civil contracts. This method of employment and earning money has certain advantages and disadvantages, and also differs in different approaches to providing state guarantees. At the same time, the exploitation of the system of civil contracts and its replacement of labor relations may be regarded as an administrative offense and entail negative consequences.

Features and differences between contract work and labor relations

It is not legally prohibited to hire contractors to perform any necessary work and provide services through civil transactions. This question is extremely relevant in situations where it is necessary to perform a certain range of tasks one-time within a specific time frame or to achieve a specific result. Such an agreement allows you to avoid unnecessary expenses of money and time for full-time employment of an employee, especially when there is no need for his constant presence at the workplace.

At the same time, contract work deprives a person working in this way of a number of social guarantees provided by the state. Also, the employer in this case has certain losses and costs, for example, associated with the lack of influence and management of such an employee. In addition, if the contract has signs of full-fledged employment, it can be recognized in court as a labor contract, which will entail corresponding costs, as well as those provided for in Art. 5.27 Code of Administrative Offenses of the Russian Federation fines.

Given the reduced tax rate and the minimum level of social responsibility to the hired employee, some employers prefer to enter into civil contracts rather than employment contracts. You should not assume that this practice is unprofitable and definitely negative for an employee working in this way - it has a number of its advantages, but there are also disadvantages.

Advantages of working under a contract compared to official employment

Certain advantages of working under a contract make it an extremely profitable way of employment for both employers and workers. In particular, contract work is one of the main ways. In particular, this list of advantages includes:

In general, traditional industries in which contracts prevail or can often be used on a par with employment contracts are construction, IT services, accounting, maritime affairs, consulting services, installation work, etc.

Disadvantages of contract work

The disadvantages of working under a contract, first of all, are expressed in much less social protection of the employee. Especially considering that in many situations, contract work is organized solely for the purpose of avoiding liability on the part of the employer to the employee, without providing him with any additional compensation. In general, the disadvantages of working under a contract are:

In general, if there are certain agreements with the employer, the working conditions under the contract may actually not differ, or even be more profitable in comparison with full-time employment. But we should not forget that signs of regular labor relations can serve as the basis for reclassifying a work contract into an employment contract by court decision, with negative consequences for both the actual employer and the contractor.

1. THE SUBJECT OF THE AGREEMENT

1.1. is hired by the company as a ; for a position to perform job duties;

2. CONTRACT TERM

2.1. The contract is concluded between the Enterprise and the Employee for a period of one year and is valid from “”2019 to “”2019; For undefined period; for the duration of the work stipulated by this Contract (delete what is unnecessary).

3. GENERAL CONDITIONS OF THE CONTRACT

3.1. By concluding this contract, the Employee takes into account that the Company is a...

3.2. When performing his direct labor duties in accordance with this Contract, the Employee will proceed from the Charter (Regulations) of the Enterprise.

3.3. The employee reports directly to the manager, as well as to the Director of the Enterprise.

3.4. The employee is a full member of the Enterprise’s workforce and participates with a casting vote in the activities of its general meeting (conference).

3.5. An employee has the right to express a personal opinion on any issue of the Company’s activities.

3.6. The employee has the right, if necessary, to familiarize himself with the internal labor regulations of the Enterprise, the collective agreement and labor legislation.

3.7. The employee is guaranteed the unimpeded exercise of the right to form a trade union. Discrimination against an Employee in terms of time and rest periods, wages and other essential working conditions due to his participation in a trade union is not permitted.

4. OBLIGATIONS OF THE PARTIES

4.1. The employee undertakes:

• perform the following work in accordance with your profession, specialty, qualification (position): ;
• during the contract period, achieve the following results;
• conscientiously, timely, at a high professional level and accurately perform their job duties, comply with the internal labor regulations of the Company, use all working time for productive work, refrain from actions that interfere with other employees from performing their job duties;
• take care of the safety of equipment, raw materials, finished products and other property of the Enterprise, as well as the property of other employees;
• timely and accurately execute the orders of the Director of the Enterprise and immediate supervisor;
• by order of the Director of the enterprise, go on business trips;
• not to disclose scientific, technical and other commercial and confidential information obtained during work without the consent of the immediate supervisor;
• immediately notify the administration of the Enterprise about violations of production technology, failure to comply with labor standards, cases of theft and damage to the property of the Enterprise.

4.2. The enterprise undertakes:

• provide the Employee with work in accordance with the terms of this Contract;
• provide the Employee with the working conditions necessary for him to fulfill his duties under this Contract, including providing the employee with the necessary technical and material means in good condition;
• equip the Employee’s workplace with the following equipment;
• provide the Employee with the following special clothing, special shoes and other personal protective equipment and organize proper care of these equipment;
• comply with labor legislation and labor protection rules;
• ensure conditions of remuneration, norms of working time and rest time in accordance with this Contract and current legislation;
• ensure that the Employee improves his qualifications and grows his professional skills at his own expense during the year;
• ensure the safety of personal property, tools, and vehicles of the employee on the territory of the enterprise;
• provide a car for business trips or pay compensation when using a personal car for business purposes in the following order;
• in the event of the death of the Employee or the onset of disability during the performance of work duties, continue to pay until the expiration of the contract to his family or to him an amount in the amount of the average earnings received by the Employee during work under the Contract;
• ensure that the introduction of new technology and equipment does not worsen working conditions; take the necessary measures to protect the health and safety of the Employee when working with new equipment and in new conditions.

5. REMUNERATION

5.1. For conscientious performance of labor duties during the monthly working hours, the Employee is guaranteed payment of an official salary (tariff rate) in the amount of rubles per month. The official salary (tariff) increases depending on the cost of living index determined by law.

5.2. An employee has the right to receive various allowances, additional payments, bonuses, and other remunerations based on the results of his activities in accordance with the remuneration system in force at the Enterprise.

5.3. The employee is established the following remuneration based on the results of work for the month (quarter) according to the following indicators and in the amount: .

5.4. The employee is paid a remuneration based on the results of work for the year in the amount of rubles.

6. WORKING TIME AND REST TIME

6.1. The employee is given a normalized (non-standardized) working day.

6.2. The monthly working hours are . Normal working hours should not exceed 8 (4) hours per day. A break for rest and food is not included in working hours. Overtime beyond the normal working day is paid at double the rate for each hour.

6.3. The start and end times of the working day, as well as breaks for rest and food, are determined by the Internal Labor Regulations of the Enterprise and orders of managers.

6.4. The normal working week should generally not exceed 41 (20.5) hours per week. Overtime beyond the normal working week is paid at double the rate for each hour. Days off are provided to the Employee in accordance with the internal labor regulations of the Enterprise.

6.5. It is allowed, as necessary, to overwork in excess of the normal working hours, but the duration of working hours during the accounting period (month) should not exceed the normal number of working hours (hours).

6.6. Night time is considered to be from 10 pm to 6 am. Night work is paid at time and a half.

7. VACATION

7.1. The employee has the right to annual basic leave of calendar days. Depending on his performance, he may be granted additional leave. Financial assistance in the amount of rubles is paid for annual leave.

8. SOCIAL INSURANCE AND SOCIAL SECURITY

8.1. During the period of validity of the Contract, the Employee is subject to social insurance and social security in accordance with the current legislation on labor and social security.

8.2. In case of permanent loss of ability to work (disability) as a result of an accident at work, the employee is paid, in addition to the one established by law, a lump sum benefit in the amount of salary.

8.3. In case of disability due to illness or as a result of an accident not related to production, the Employee is paid a one-time benefit in the amount of salary.

8.4. In the event of the death of an Employee during the validity period of the contract, his family is paid in addition to the salary allowance established by law.

8.5. In case of temporary loss of ability to work, the employee is paid the cost of medications and paid services from medical institutions in the amount of .

9. SOCIAL AND HOUSEHOLD SERVICES

9.1. Social services for the Employee are provided by the management of the Enterprise in accordance with the decision of the general meeting of the workforce and at the expense of funds allocated for these purposes.

9.2. The employee is provided with the following services and benefits for social services, not established by current legislation:

• payment of a one-time benefit for annual leave in the amount of;
• annual provision to the Employee and his family members of a voucher to a sanatorium or rest home with the employee paying a percentage of the cost of the voucher;
• provision of an apartment to the Employee on the terms .

10. CHANGE, CONTINUATION AND TERMINATION OF THE CONTRACT

10.1. Changing the terms of the contract, its extension and termination is possible by agreement of the parties at any time.

10.2. Upon expiration of the Contract, it is terminated. This rule does not apply to cases where the employment relationship actually continues and neither party has requested its termination. In this case, the Contract is extended for the same period and with the same conditions.

10.3. The Contract is subject to early termination at the Employee’s initiative in the following cases:

• his illness or disability preventing him from performing work under the Contract;
• violations by the management of the Enterprise of labor legislation or this Contract;
• other valid reasons;

10.4. The contract before its expiration may be terminated at the initiative of the Enterprise on the following grounds:

• changes in the organization of production and labor (liquidation of the Enterprise, reduction in the number or staff of employees, changes in working conditions, etc.);
• discovered inconsistency of the Employee with the work performed in the absence of guilty actions on his part;
• guilty actions of the Employee (systematic failure to fulfill work duties without good reason, absenteeism, appearing at work while intoxicated and other violations of labor discipline, disclosure of trade secrets, violation of clause 12.3 of this Contract, theft, etc.).

10.5. Dismissal at the initiative of the Enterprise is carried out on the basis of the corresponding conclusion of the head of the structural unit of the Enterprise, in compliance with the requirements of labor legislation.

11. COMPENSATION UPON TERMINATION OF THE CONTRACT

11.1. Upon termination of the Contract on the grounds provided for in clause 10.3 and clause 10.4, the Employee is paid severance pay in the amount of average monthly earnings. Upon termination of the Contract on the grounds provided for in clause 10.4, the Employee also retains his average monthly earnings for the period of job search during the second and third months from the date of dismissal, if he has registered with the employment service as a job seeker within 10 calendar days after dismissal .

11.2. Subject to termination of the contract (for good reasons), along with the payments provided for by current legislation and this Contract, the Employee is also paid a one-time benefit in the amount of rubles.

12. SPECIAL CONDITIONS

12.1. The enterprise serves as the main place of work for the Employee; The employee is hired to work for the Enterprise on a part-time basis (cross out what is not necessary).

12.2. Labor functions not arising from this Contract may be performed by the Employee within the Enterprise only with the consent of the head of the structural unit and the director of the Enterprise.

12.3. The employee does not have the right to perform work related to this Contract under contracts with other enterprises and organizations, as well as engage in any other type of activity in other enterprises and organizations if this may cause economic or other damage to the Enterprise. Failure to comply with this clause is sufficient grounds for dismissal of the Employee.

12.4. The Enterprise pays the Employee a one-time benefit in the amount of rubles within days after the conclusion of the Contract. The benefit is not a form of remuneration.

12.5. The Company pays the Employee monthly rubles.

12.6. All materials created with the participation of the Employee and on the instructions of the Enterprise are the property of the Enterprise.

12.7. The Parties undertake not to disclose the terms of this Contact without mutual consent.

12.8. The terms of this Contract may be changed only by agreement of the parties.

12.9. The parties are responsible for fulfilling their obligations under this Contract in accordance with current legislation.

12.10. Disputes arising between the parties to the Contract are resolved in accordance with the procedure established by current legislation.

12.11. In all other respects not provided for in this Contract, the parties are guided by the norms of the Labor Code of the Russian Federation and the Charter (Regulations) of the Enterprise.

13. OTHER TERMS

13.1. This Contract is drawn up in two copies: one for each of the parties and is considered valid only if there are signatures of both parties: the Employee and the Enterprise, certified by the seal of the latter.

14. LEGAL ADDRESSES AND PAYMENT DETAILS OF THE PARTIES

Company Legal address: Postal address: INN: KPP: Bank: Cash/account: Correspondent/account: BIC:

Worker Registration: Postal address: Passport series: Number: Issued by: By: Telephone:

15. SIGNATURES OF THE PARTIES

Company _________________

Worker _________________