Difference between Contract of Service & Contract for Service

1. Contract of
Service &
Contract for
Service
Mohd Hanif Zulkifli Choo

2. Contract of Service
Interpretation
Section 2 of Employment Act 1955
“contract of service” means any agreement, whether oral
or in writing and whether express or implied, whereby one
person agrees to employ another as employee and that
other agrees to serve his employer as an employee and
includes an apprenticeship contract;
Mohd Hanif Zulkifli Choo

3.  A contract of service is any agreement whether in writing or verbal,
expressed or implied, whereby:
 One person agrees to employ another as an employee, and
 The other person agrees to serve the employer as an employee
 An apprenticeship contract or agreement is also considered a contract of
service.
 A contract of service can be in the form of a letter of
appointment/employment.
 The employer cannot change the terms and conditions of employment
unless the employee agrees to it.
 Any terms and conditions of employment, in a contract of service, that is
less favorable than the relevant provision under the Employment Act is
illegal, null and void.
 The provision in the Act will take precedence over a particular contractual
term that is less favorable.
Mohd Hanif Zulkifli Choo

4. Contract for Service
Interpretation
Section 2 of Employment Act 1955
“contractor for labour” means a person who contracts with
a principle, contractor or sub-contractor to supply the
labour required for the execution of the whole or any part
of any work which a contractor or sub-contractor has
contracted to carry out for a principle or contractor
Mohd Hanif Zulkifli Choo

5.  In a contract for service, there is no employer and
employee relationship.
 The person is usually self-employed or may provide
his/her services on a freelance basis at a fee.
 He/she is not an employee within the definition in the
Employment Act.
Mohd Hanif Zulkifli Choo

6. Thank You
Mohd Hanif Zulkifli Choo