A contract for work (“ugovor o djelu”) and an employment contract (“ugovor o radu”) represent two fundamental types of legal agreements used in work and business relationships but differ significantly in the rights and obligations they create.
An employment contract is regulated by the Labour Law and establishes a classic employment relationship between the employer and the employee. Under this contract, the employee is entitled to regular monthly salary, paid sick leave, annual leave, health and social benefits, as well as protection against unlawful termination. This contract implies fixed or flexible working hours, permanent engagement, and a clear hierarchy within the workplace.
In contrast, a contract for work is an agreement whereby one party (the contractor) commits to performing a specific task or service for the other party (the client), without establishing an employment relationship. This type of contract is used for occasional, project-based, or specific tasks and does not provide the same rights as an employment contract. The contractor has no entitlement to sick leave, annual leave, health contributions, or other social benefits, nor protection from termination since no formal employment relationship is created. Compensation under a contract for work is paid for the specific completed task and does not constitute regular income.
Correctly distinguishing and applying employment contracts and contracts for work is crucial to avoid legal irregularities and to protect the rights of both employees and employers. Improper use of these contracts can lead to labor disputes, additional costs, and legal penalties. Therefore, it is important for employers and workers to be familiar with the legal provisions governing these contracts.
In our practice, we have frequently encountered various challenges related to drafting and interpreting employment contracts and contracts for work, as well as protecting the rights arising from them. Based on years of experience in labor disputes, we understand the specifics and potential complications in these areas and believe it is beneficial to have expert support from professionals who comprehend the complexity of labor law and can assist in safeguarding your interests.
