In Singapore, understanding the difference between a contract of service and a contract for service is crucial for both employers and employees. The distinction between the two types of contract lies in the nature of the relationship between the parties involved.

A contract of service is an employment contract where the employee works for the employer as an employee. In this type of contract, the employer has control over the work performed by the employee and there is a clear employer-employee relationship. The employer has the authority to instruct the employee on how to carry out their work and has the responsibility to provide the necessary tools and resources for the employee to carry out their job.

On the other hand, a contract for service is a contract where the person providing the service is not an employee but rather an independent contractor. In this type of contract, the contractor is engaged to provide a specific service for the client. The contractor has greater control over how the work is done and may use their own tools and resources.

It is important to note that the consequences of these different types of contracts can vary greatly. An employee under a contract of service is entitled to certain statutory rights such as leave entitlements, CPF contributions, medical benefits, and protection under the Employment Act. Conversely, a contractor under a contract for service is not entitled to these same benefits.

To further differentiate between these two types of contracts, it is helpful to consider the factors that are taken into account when deciding whether a person is an employee or a contractor. These factors include the degree of control the employer has over the work, the presence of a fixed working schedule, the nature of the work performed, the level of skill required, and the degree of financial risk taken.

In conclusion, it is important for both employers and employees to understand the difference between a contract of service and a contract for service in Singapore. By understanding the nature of the relationship between the parties involved, employers and employees can ensure that they are adequately protected and that their rights are respected.