In professional practice, it is often necessary to distinguish between a contract for services and an employment contract, as each creates different rights and obligations.
Understanding this difference is essential for both employers and workers, especially when legal protection and financial security are in question.
👩💼 Employment Contract – A Standard Work Relationship
An employment contract establishes a continuous working relationship. Under this arrangement, the employee is entitled to:
a regular monthly salary,
paid annual leave,
sick leave and health insurance coverage,
protection of employment rights and job stability.
This contract involves structured working hours and defined responsibilities.
🛠️ Contract for Services – Work Based on Task Completion
A contract for services is used when a specific, clearly defined task or project needs to be completed.
The service provider:
does not have the status of an employee,
does not receive paid leave or sick leave,
is compensated only for the completed work,
and the relationship ends once the task is finished.
⚖️ Why is the distinction important?
Choosing the correct form of engagement:
protects workers from loss of rights,
protects employers from legal disputes and sanctions,
and ensures compliance with applicable labour standards.
🤝 Practical Experience
In practice, we often see:
workers engaged “by task” while performing work typical of employment,
employers unintentionally taking on legal risks,
workers unsure of the rights they are entitled to.
We offer strategic guidance and legal support to ensure clarity, fairness and compliance.
❓ FAQ
1) Can a contract for services be used for long‑term work?
Yes, but if the nature of the work is continuous, the arrangement should be reviewed.
2) Does a person working under a contract for services receive sick pay?
No – payment applies only to work performed.
📞 Contact – Legal Support and Advisory
If you are unsure whether your contract is properly structured:
Email: ana@raguzlegal.ba
Phone: +387 63 413 147
