Contract for work and service: Characteristics and types

With this simple guide about the contract for work and service we will help you to minimize the risks of hiring. For this purpose, we provide legally binding models for the signatories, along with our related forms. In addition, we minimize the risks by taking appropriate measures in the preparation of the contract adjusted to you.

Contract for work and service

In the contract for work and service, a person (contractor) is obliged to execute a work or a service for a time and agreed price.

It is closely related to the mandate, mediation and brokerage and the Mercantile Commission. That is because in these types of contracts is very common to contract the completion of a work in a previously agreed period. Or to provide services determined by a professional in exchange for a price.

However, in the contracts for work and service you get a material result, or you get a provision of the service. On the contrary, in the mandate and mediation what is pursued is a specific result.

Differences between the contract for work and the contract for service

The main differences between the two figures are:

• What activity is performed.
• The result.
• Relationship duration and price (remuneration) of the contract.
• Employment relationship and media disposition.

Characteristics of the contract for service

• The person who is to perform the activity is obliged to the provision of certain services, work or an activity in itself (not to the result it produces).
• The customary remuneration must be proportional to the time duration of the contracted services.
• It is carried out in a situation of dependence of the one who receives them, in an employment contract-employee relationship, but with its own means.

Characteristics of the contract for work

• The contracted person must obtain a certain result, without considering the work or activity necessary to achieve it.
• In the contract of work, it is normal to fix the remuneration in proportion to the number or measure of the work.

• The activity aimed for achieving the result is carried out by an independent company, putting its own material means or using the contractor’s. Therefore, there are two possible kinds of contracts for work according to the means provided:

1. That the contractor is employed by putting only his work or his industry.
2. That the contractor supplies also the material (in addition to the work).

Freelance contract

Freelance contracts are widely used in practice by companies seeking to hire freelancers. Both collaborators are self-employed freelancers, with the difference that the freelancer is independent and usually temporary. The freelancer can work for various companies. On the other hand, the TRADE (“Trabajador Autónomo Económicamente Dependiente”) is dependent on a single company. The reason is that more than 75% of its work is dedicated to one single company.  They have a labour contract with a greater capacity of permanence and the ability to take charge of its own contributions in the Social security.

How can I make a contract for work and service?

Form of the contract

it is advisable to make in writing the contract for work and service, thus avoiding possible confusions in the future.

Basic content of these contracts

1. Personal data of the parties (name, surname, age, marital status, nationality, DNI/CIF, domiciles, profession).
2. Work or service to be done.
3. Remuneration and payment method (Fees).
4. Duration of the contract, which will vary depending on whether it is contracted for a particular service or for work. If it is a contract for work the contract will finish when the work is completed.
5. Place where the work will be carried out or the services will be developed.
6. Rights and responsibilities. Among them, the temporary limit for the provision of the service or accomplishment of the work, the expected result, responsible of the materials of the work, indemnifications for damages…
7. Causes of termination of the contract. Among the reasons, the impossibility of carrying it out, loss or destruction of the object of the contract, resignation or death of one of the parties…
8. Court of the city to which the parties expressly submit in case of controversy.

If you want more information about the contract for work and service or you still have doubts, ask our specialist lawyers for advice.