Services Contract

Any labour undertaken on a basis other than an employment contract, is done so on the basis of a services contract.

In many cases, a services contract may in effect constitute an employment contract. Both the tax authorities and the civil courts often consider services contracts to be employment contracts, irrespective of what parties have agreed to (on paper). This could imply serious consequences for both client and contractor. The client issuing the labour is then required to withhold income tax and social security contributions. The contractor will then be entitled to dismissal protection and continual pay in case of illness.

Services contracts may be, e.g.: Management Contracts, Consulting Contracts, Franchise Contracts, Freelance Contracts, and Outsourcing Contracts.

Fruytier Lawyers in Business know the pros and cons of the different entities of the services contract. We can protect you from the risks involved with such contracts. Would you like to have a services contract drawn up? Or do you need advice on a services contract? Please contact Mr. M. van Westendorp, Mrs. B.J.C. Boogers-de Haan or Mr. N. Ch. Ellens for any questions/legal issues you may have regarding services contracts.

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