Contract of Service
The Labour Act, 2003 ACT 651 defines “Contract of Employment” to include a Contract of Service, whether express or implied, and if express, whether oral or in writing. A Contract of Service relates to a working situation where one is an employee or a worker working for an institution in which that worker or employee is either told what to do and how to do it, or the institution employs a skilled professional worker or employee into its service. The employee/worker has certain advantages such as being paid a salary, taxes are deducted from the source, and the employer will be liable for the employee’s tort arising from the normal course of duty. (4 marks)

Contract for Services
A Contract for Services relates to a working situation where a person works on his own, runs his own business, and will work for a person who requires his services. Such a person pays his taxes on his own, files his taxes, and is liable for his own tort and provision of his own tools. (4 marks)