



Simply using this Service Agreement is not enough to convert an employee into a contractor. The difference between an employee and a contractor is based on many factors, and no single factor is determinative. This is different from an employment contract, which would enable the service provider to be hired as an employee. This Service Agreement enables a service provider to be hired as a contractor. People or businesses using this document may need to consider the difference between a contractor and an employee. If these issues are not addressed up front, they can lead to costly legal disputes when they are eventually discovered. However, in many cases they fail to discuss a crucial element - such as when payment is due, where materials are to be purchased, or who is to pay for materials. Some parties may not use a written service agreement, thinking they have reached an agreement verbally or "on a handshake". They do this by forcing the parties to discuss the key elements of the arrangement up front.

While Service Agreements simplify the process for resolving disputes, they also prevent many disputes from arising in the first place. The Service Agreement will set out the exact scope of work, as well as timeframes for completion of work, payment terms and dispute resolution mechanisms. Some common examples include people or organisations involved in trades such as building, plumbing, painting and electrical work as well as cleaning services, gardening, coaching, personal training, consulting and professional services. It can be used by any person or organisation which sells services. A Service Agreement is a contract which governs the sale of services.
