Before hiring a new employee, you must choose the form of employment. It should be appropriate to the nature of the work and the employee’s duties. The decision about the type of contract is very important because it defines your responsibilities and the rights of the person you hire. Depending on the type of contract you choose, the termination of the contract will look different and the costs you incur as an employer will be different as well. Read the article to the end and learn more about what kind of contract to employ – full-time job, contract or a specific task?
Characteristics of contracts
Here are the types of contracts under which employees are hired:
- Employment contract
It is regulated by the Labour Code. The employee under the contract undertakes to perform specified duties at a specified time and place for a specified amount of remuneration. The parties to the contract are the employer and the employee. This type of contract most strongly binds the parties in a legal relationship. The work in this case must always be performed personally and the payment of contributions is mandatory for the employer.
- Contract of mandate
This contract is governed by the Civil Code. In the contract of mandate, which is also called the contract of careful work, the employer (the hirer) contracts the contractor (the hired person) to perform a specific task, which is repetitive. The contract guarantees a minimum hourly rate. It is also possible (with the consent of the principal) to delegate one’s work to a substitute.
- Contract for specific work
Similar to the contract of mandate, this contract is regulated by the Civil Code. Due to the fact that it is a contract for a result, the most important thing is to perform a specific, ordered work. It may be, for example, making a photo session, proofreading a text, renovation of an apartment. In the contract for specific work there is no such thing as a minimum hourly rate. There is also no obligation to pay contributions.
Read about How to conclude a contract of mandate or contract for specific work
Which contract should I employ – a full-time job, a contract of mandate or a contract to perform a specific task?
At the beginning you must remember that you can not always conclude a contract of mandate or contract for specific work. The decision to choose the type of contract must not be dictated only by the avoidance of obligations related to labor law or social security. As a result, you cannot always opt for a contract of mandate for the sake of lower costs. This is especially true if the work performed by the new employee has the characteristics of an employment contract. The contract should be well suited to the nature of the work.
