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Employment contract of assignment

Uncertainties continue to rise among clients and contractors in collaborations where an employment contract is not used. Assignments are mostly confirmed by e-mail. Yet freelance or temporary work also involves labour law aspects and a risk. Clients working with a flexible team are well advised to obtain information about the mutual obligations within these collaborations. These are laid down in an assignment contract.

The difference with an employment contract

If work is not performed on the basis of an employment contract, it is often a commission contract. Practice shows that in many cases, this agreement can still be considered an employment contract. In fact, both the tax authorities and the civil courts often consider the work contract to be an employment contract or employment relationship, regardless of what the parties have agreed (in writing). This can have far-reaching consequences for both client and contractor. This is because the client then has to pay payroll tax and social security contributions. The contractor’s rights include protection against dismissal and continued payment of wages in case of illness.

Obligations of the principal and the contractor

Is there a contract for services? If so, both parties have various obligations after signing the agreement. Among other things, the principal is obliged to pay wages or salary and reimburse the contractor’s expenses – provided these expenses are not included in the salary. The contractor in turn undertakes to perform work properly and thoroughly. The contractor also confirms to carry out the assignments himself, unless otherwise stipulated in the agreement. During the assignment, the contractor keeps the client informed about the work being carried out and how it will be done.

Examples of assignment agreements are:

  • Management agreements;
  • Consultancy agreements;
  • Franchise agreements;
  • Freelance agreements;
  • Secondment agreements.

Drafting or reviewing an assignment agreement

Fruytier Lawyers in Business knows the pros and cons of the different forms of these work agreements. What should you pay attention to when terminating a contract early or in the interim? What risks does this form of cooperation entail for your company? Which substantive agreements should not be missing from the cooperation agreement? We can protect you from all kinds of pitfalls, solve legal issues associated with these agreements for you and draft or review a cooperation agreement for you.

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