Individuals or companies that use this document may need to consider the difference between a contractor and an employee. This service contract makes it possible to use a service provider as a contractor. This is different from a contract of employment that would allow the claimant to be employed and would require the provision of all types of benefits under labour law. The Goods and Services Tax (GST) applies to the provision of variable rate services for different categories of services, with the exception of a small number of exempt services. Further information is available on the website of the Central Excise and Customs Authority. The difference between an employee and a contractor is based on many factors such as the extent of control over the contractor`s ability to cooperate with other customers, to choose its own equipment for the provision of services and to sub-delegate the work, and no single factor is decisive. The mere use of this service contract is not enough to turn an employee into a contractor. Instead, the courts will consider the entire agreement and decide whether the service provider works within the company, as a member of the company (as a very uncontrolled employee) or whether the contractor runs its own business (as a contractor). This service contract can be set up to deal with either an ongoing agreement for the provision of services or a single project. when payment is due, where to buy materials or who has to pay for the materials. If these issues are not addressed in advance, they can give rise to costly litigation if they are finally discovered….