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Iowa Employment Compensation Contract Law Article
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Employee and Contract Employment: Different Rights
from:There are two major ways that people work for companies. They either become an official employee of that company, or they work for the company on a contract basis. That means that they are only working for them for a limited time; usually just in time to finish a particular project. Either way, though, whether it is for official or contract employment, the worker still needs to fill out an employment contract. The only real difference here is what kind of thing is on the contract for employment. For employees of the company, the contract will list a lot of things about the benefits that the company receives by working there. Contractors and freelancers don't get these kinds of benefits. Instead, the contract for employment will list all of the terms regarding the project that the freelancer will be working on. This information is very important in order to make sure that both parties are satisfied.
For regular employees, there are certain things that must be on the employment contract in order for both parties to be sure that their rights are covered. For starters, a contract for employment should list all of the wages and benefits that the employee will be receiving. It should designate whether the employee will be paid an hourly wage or a salary, or some other form of payment that your company provides. It should also list all of the benefits they will get, including any health insurance, retirement plans, or paid vacation time. This way, both parties will be sure that their rights are covered. The more that you specify in an employment contract, the more that you can be sure that you won't be sued or that there won't be any confusion in regards to the employment.
When it comes to freelance and contracting workers, things are a bit different. The contract for employment won't feature much of what goes into the contract for regular employees. Freelancers usually don't get any benefits from the company other than the pay that they receive for doing the job. Instead, the contract is made up of the terms of their work for the company. Usually, freelancers are working for the company only in order to complete a certain project. Because of this, the contract between the two parties is mostly about that one project. It lists how much the freelancer will be paid, how often they will receive the money, and how long it will take to finish the project. In these circumstances, it is often up to the freelancer to make the contract since they will be the one providing a service. They are much more of a service provider than they are an employee.
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