Introduction
Employment contracts are designed and delegated through contract of service and contract for service both governed by the common laws. In both types of contracts, the entities involved have specific rights and responsibilities that differ according to the type of contract they are involved in. In this assignment, we will cover the definition of both types of contract. Moreover, this essay will talk about the importance to distinguish between the type of contract and problems faced in it.
Difference between contract of services and contract for services
In both types of contract, the parties involved have some responsibilities and duties. It is very important to understand the difference between the type of contract. Moreover, the parties should aware of the type of contract they are involved in, so that they can understand and be aware of their responsibilities and duties (Government 2011). Also, a distinction is required to avoid the misuse of these terms by some unethical employer to provide some undue advantage
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There are some of the examples in which court used this test and found that the worker is a contractor e.g. Australian Air Express v Langford (2005), Tobiassen v Reilly (2009). In ACE Insurance Limited v Trifunovski [2013] FCAFC 3 case, primary judge analyses all the indicia and came on the conclusion that appellant is not an employee and working on a contract for service, whereas appleant wasn’t satisfied with the decision of judge. There is one example like “Sammartino v Mayne Nickless (2000)” in which court didn’t preclude a finding that they are employee on the basis of some other indicators (Refer appendix 4 for recent cases). Thus, there is a limitation of multi factor test also to understand correctly the employment status in some