When engaging individuals or entities for work, it’s crucial to choose the correct legal framework—service agreement or employment contract. While both documents formalize working relationships, they serve very different legal and practical purposes.

At LawChef, we provide expert legal support in the drafting of service agreements and employment contracts. If you're unsure which contract suits your situation, our experienced service agreement lawyers in Delhi are here to help.

What Is a Service Agreement?

A service agreement is a contract between a business (or individual) and a service provider, often an independent contractor or a third-party agency. It outlines the scope of services, timelines, fees, and terms of delivery, without establishing an employer-employee relationship.

When businesses draft a service agreement in Delhi, they’re often hiring freelancers, consultants, or vendors who operate independently.

What Is an Employment Contract?

An employment contract, on the other hand, governs the relationship between an employer and an employee. It includes terms such as salary, benefits, working hours, leave entitlements, termination conditions, and adherence to company policies.

Unlike service agreements, employment contracts trigger statutory obligations such as:

• Provident Fund contributions
  
  

• Gratuity payments
  
  

• Adherence to labor laws (e.g., Shops and Establishment Act)
  
  

Key Differences Between Service Agreement and Employment Contract

Why the Distinction Matters

Misclassifying an employment relationship as a service agreement can lead to legal and financial consequences. If labor authorities determine that a contractor is actually functioning as an employee, businesses may be liable for back wages, benefits, and penalties.

That’s why the correct drafting of service agreement is essential—and why many Delhi-based businesses turn to LawChef for accurate, legally compliant contract creation.

When Should You Use a Service Agreement?

✅ Hiring a consultant or freelancer for a project
✅ Engaging vendors or third-party service providers
✅ Short-term or highly specialized work
✅ No need for daily supervision or integration into your team

If you’re planning to draft a service agreement in Delhi, our legal experts ensure that the terms clearly define the independent nature of the relationship to avoid labor law entanglements.

Why Choose LawChef?

At LawChef, we bring clarity and legal precision to your contracts. Our services include:

• Tailored drafting of service agreements
  
  

• Legal vetting of employment contracts
  
  

• Advisory services from skilled service agreement lawyers in Delhi
  
  

• Risk mitigation and compliance support