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

In Virginia, there are two types of contracts that are typically used when an employer and employee enter into a working relationship: contracts of employment and contracts for services. A contract of employment lays out the terms and conditions of the employment relationship between the employer and employee. It will typically include the employee’s start date, job title and duties, salary, benefits, restrictions (like non-competition agreements and non-disclosure clauses), and termination requirements. In Virginia, an employment contract must be in writing and signed by both the employee and employer to be legally binding. On the other hand, a contract for services is a binding agreement between an employer and an independent worker, such as a freelancer or consultant. This type of contract is typically used when an employer needs certain services to be completed, but does not intend to create an ongoing employee-employer relationship. The contract will specify the type of services to be completed, the duration for which the services will be provided, and how the contractor will be compensated for their work. The key difference between a contract of employment and a contract for services is that an employment contract creates a long-term employee-employer relationship, whereas a contract for services is primarily used for one-off services.

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

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