What is the difference between a contract of employment and a contract for services?

A contract of employment is a type of contract where two parties—an employer and an employee—agree upon the terms of their working relationship. The employer pays a salary or wages to the employee in exchange for their labor, skills, and services. Additionally, the employer is responsible for providing a safe and healthy work environment, as well as other benefits in accordance with the law. A contract for services is a type of contract in which one party hires another party to provide services or do work for them. Unlike an employment contract, this type of agreement does not outline an employer-employee relationship. Instead, the party being hired is an independent contractor and works on their own time and in exchange for a fee, required materials, or other consideration. The party hiring the services is only responsible for the payment and any other specified obligations. In California, labor laws govern both types of contracts, but they are tailored specifically to the type of contract. Employment contracts are subject to the state’s minimum wage laws, overtime and vacation pay regulations, and anti-discrimination laws. On the other hand, contracts for services are not subject to the same set of regulations, since the parties involved are not in an employer-employee relationship.

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What is the difference between a contract of employment and a contract for services?

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