MAIN ISSUES IN HIRE OF SERVICE AGREEMENT WITH HIRE OF WORK AGREEMENT

Abstract

The Hire of Service Agreement and The Hire of Work Agreement are contracts with differing characteristics and procedures in business. The significant similarity between the two types of contracts is that they both require agreements regarding the work to be done, payment terms, and the specified duration of work. However, there are significant differences in the nature and objectives of hiring. The Hire of Service Agreement aims at hiring labor services, indicating the legal responsibilities of the employer. The employee is responsible for the work and services contracted and often has various rights in cases where the work is not performed as agreed upon. In contrast, the Hire of Work Agreement aims at the outcomes of the contractor's work. The contractor has more freedom in determining the methods of work to achieve the agreed -upon results. In this case, there is often a specification of the project or work to be done, along with a limited timeframe. Legal responsibilities are more divided, with the contractor generally bearing more property risks if the results do not meet the agreement. In summary, The Hire of Service Agreement focuses on labor services, while The Hire of Work Agreement focuses on the outcomes of the contractor's work. There are differences in the nature of work, responsibilities, property risks, the nature of hiring, and legal rights and risks. Additionally, there are differences in legal responsibilities and property risks. Therefore, both The Hire of Service Agreement and The Hire of Work Agreement emphasize responsibility and freedom in defining work and results, respectively.