The key rights and responsibilities of employee status under a contract of service are: By definition, if a worker has a contract of service with an organisation, they are an employee for IR35 purposes.

Permanent employees have a contract of service with their employer. In each of these types of contract, both parties have specific rights and responsibilities, which differ according to the type of contract in place.Р”В¬ontractors should be aware of their rights and responsibilities when they have a contract for services between their limited company and their agency or end-user client as it will affect their IR35 status.

A contractor-client contract is a contract for services.

An employee-employer contract is a contract of service.

Please explain the differences between a РІР‚Вcontract of servicesРІР‚в„ў and a РІР‚Вcontract for servicesРІР‚в„ў РІР‚вЂњ does it change my IR35 status?Р”Р„n easy way to explain the difference for IR35 purposes is: This guide will explain the IR35 issues related to these types of contracts and how they affect you the contractor. However, the debate over contracts of service and contracts for service has a long history in employment law, as has the employment status of agency workers long before the contracting sector took off and IR35 was introduced.

An understanding of the types of contracts between clients, agencies and contractors and employees is vital for a contractor to be able to determine whether they are working inside or outside of IR35.

Contractor-client contract for services