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Employee and Contract Employment - Different Rights


People work for companies in two major ways. They are either an official employee of that company or they work for them on a contract basis. If it's on a contract basis, they only work for the company for a limited amount of time. This is usually timed to just finish a particular project.

The Employment Contract

The worker still needs to fill out an employment contract whether it is for official or contract employment. The real difference begins to emerge with what is written into the contract for employment. For official employees of the company, the contract will list the benefits that they receive by working there. On the other hand, contractors and freelancers don't get these kinds of benefits. Instead, their contract for employment will list the terms regarding the project that they will be working on. It is very important that this information satisfies both parties.

Regular Employees

For regular employees, their employment contract must state certain conditions of employment to cover the rights of both parties. For instance, their contract for employment should list all of the wages and benefits that the employee will be receiving. It should also stipulate whether the employee will be paid an hourly wage, a salary or some other form of payment. It should also list all the benefits they are entitled to, such as health insurance, a retirement plan, or paid vacation time. In this way, both parties will be sure that their rights are covered.

Contracting and Freelance Workers

The situation is different for contracting and freelance workers. Their contract for employment has virtually none of the features of the contract for regular employees. Other than the pay they receive for doing their job, they usually don't get any benefits from the company. The only important emphasis in their contract is on the terms of their work for the company - how much they will be paid, how often they will receive the money, and how long it will take to finish the project. Basically, the only reason freelancers are working for the company is to complete a certain project by a designated time. For this reason, the contract between the two parties is mainly concerned with that one project only.


In their contract of employment, official employees of a company should expect certain benefits and rights that protect both themselves and the employer. For the contracting and freelance workers, they will only expect the stated terms of their work. In these circumstances, it is often up to the freelancer to make up the contract since they will be the ones providing the service. In fact, contractors and freelancers are more of a service provider than they are an employee.

However, one very important condition is shared by all parties involved in the contract for employment. The more that is specifed in an employment contract, the less chance of any confusion, or of being sued, in regards to the employment.

About The Author: Shane Duffy believes there is a strong need for everyone to keep up-to-date with employment trends and opportunities. This includes an understanding of the different rights offered to regular and contract workers. To learn more visit your Contract Employment Guide.

Source: www.articlecity.com