There is a key distinction in employment law between a “contract for services” and an employment contract. An employee works under an employment contract, whereas an independent contractor provides services under a contract for services.

If the services are provided by an independent contractor then the relationship is purely commercial and any termination of the contract can only be disputed as breach of a commercial agreement.

The rise of the gig economy has seen many people who work for one employer classed incorrectly as independent contractors. However, we are seeing a trend of increased claims before the Workplace Relations Commission (WRC) of workers classified as independent contractors who should, in reality, be classed as employees.

Confusion surrounding the terms