Definition of Personal Services Contract

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A personal services contract is a legal agreement between an individual employee and an employer. This agreement clarifies the terms and conditions of the employment.

Effects

  • Through a personal services contract, the employee-employer relationship is better defined. The responsibilities of the employee and employer are also clearly identified.

Terms

  • The personal services contract is created by the employer and given to the employee. However, employees are not required to agree to the terms of the contract. Counter proposals can occur with a personal services agreement that the employee does not agree to. In some cases, an employer may not hire a person unless they agree to the terms.

Negotiation

  • Some people may opt to bring in professionals to help them negotiate the working conditions and wages established in their personal services contract. In this case, a lawyer can help a person obtain a contract that serves his best interest.

Considerations

  • Employees must also be aware that employers draft personal services contracts for their own benefit. Therefore, the contracts are frequently one-sided and often give the employer more rights and flexibility than the employee.

Warning

  • The time to negotiate with an employer is before contracts are signed. Employees should be careful to thoroughly read through personal services contracts and any other legally binding documents before placing their signatures on them.

References

  • Photo Credit Hemera Technologies/AbleStock.com/Getty Images
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