contract for service & contract of service

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CA Raminder singh (Querist)
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26 April 2009 What is the difference between "contract for service" & "contract of service"?

Is contract between employer and employee "contract for service"?

What is the nature of contract between master & servant?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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26 April 2009 • In contract of service, the employer can direct and control the duties and the manner of performance of employee hence employer-employee relationship exists in such contract. However, in case of “contract for service” the contractee can simply decide and quote the object or target to be achieved but cannot decide or direct the manner of performance. It is the contractor who chalks out the programme and executes the same to achieve the result. Contractor enjoys a large measure of discretion in executing the contract and day-to-day control by contractee shall remain absent. Hence in such case employer-employee relationship does not exist. Hence the relation between employer(master) and employee(servant) is contract of service

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