UNIVERSITY OF LIVINGSTONIA

KANING’INA CAMPUS

FACULTY OF BUSINESS AND COMMUNICATION STUDIES

DEPARTMENT OF HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL

RELATIONS

NAME : PATIENCE H. CHALO

REG NUMBER : HRM/01/03/23

YEAR : ONE

SEMESTER : TWO

LECTURER : MR. MKOPOLIWA

COURSE TITLE : BUSINESS LAW 2

COURSE CODE : BBM 1202

TASK : FIRST ASSIGNMENT

DUE DATE : 8 MARCH 2024

A contract of employment establishes an employer-employee relationship where the employer has
considerable control over the employee’s work, including the conditions and manner in which it
is performed, and in return, the employee is granted specific legal rights and protections, such as
minimum wage and workplace benefits. Conversely, a contract for service is an agreement with
an independent contractor who retains control over how their work is completed, without the legal
employment rights of an employee, but with the flexibility to negotiate terms and manage their
own business affairs. Both contracts are pivotal in defining the framework of work and
compensation, but they set fundamentally different expectations and legal standings for the
involved parties.

A contract of employment, according to Collins, H. (2010)., is a formal agreement between an

employer and an employee, where the employee agrees to work for the employer in exchange for
a salary or wages. The employer typically has more control over the work performed by the
employee, including setting the hours of work, providing tools and equipment, and determining
the location of work. In the landmark Malawian case of Chikuni v. Malawi Housing Corporation
(2000), the High Court’s ruling illuminated the critical nature of fair treatment and strict adherence
to the terms outlined in a contract of employment. The case revolved around an employee who,
after being dismissed on allegations of deceit, sought legal redress, claiming wrongful termination
and violation of constitutional rights. The court’s decision in favor of the employee reinforced the
principle that employers must conduct their actions within the bounds of the law and the contract,
upholding the employee’s right to fair treatment and due process. This case serves as a precedent,
emphasizing the employer’s duty to respect the legal rights of employees, which are firmly
established in employment contracts, and to act in accordance with the agreed-upon terms and
conditions of employment.

On the other hand, according to Barendrecht, M., & Barendrecht, J. M. (2007)., a contract for
service is an agreement between a service provider and a client, where the service provider agrees
to provide services to the client in exchange for payment. The service provider usually has more
autonomy in how the services are delivered, including the methods used, timing, and location of
service provision. The Mwale v. Malawi Broadcasting Corporation (2015) case is a pertinent
example of the legal considerations surrounding a contract for service in Malawi. It underscores
the autonomy a service provider has in terms of the methods, timing, and location of service
delivery. More importantly, it highlights the judiciary’s role in upholding the rights of service
providers, particularly regarding the enforcement of payment terms and contractual obligations.
The case serves as a reminder of the legal protections available to service providers and the
importance of a well-drafted contract that clearly outlines the expectations and responsibilities of
both parties.

In the realm of employment law, Honeyball, S., & Pearce, D. (2006). said that a contract of
employment is imbued with statutory rights and protections that safeguard the employee’s
interests, such as the right to a minimum wage, entitlement to various forms of paid leave, and
safeguards against unjust termination. These provisions are designed to ensure fair treatment in
the workplace and provide a safety net for employees. On the flip side, Duan, Y. (2012, August).
said that a contract for service grants the service provider a greater degree of freedom and self-
determination, allowing them to dictate their own fees, choose their working hours, and decide on
the methods of service delivery, reflecting the independent nature of their role.

Moreover, a contract of employment typically signifies a more enduring and stable relationship
between the employer and employee, characterized by continuous obligations and a mutual
commitment. This contrasts with a contract for service, which is generally more transient and
focused on the completion of specific tasks or projects, with the contract detailing the expected
outcomes and deadlines. This distinction is crucial as it influences the dynamics of the working
relationship and the degree of autonomy afforded to the individual providing the services.

In conclusion, the distinction between a contract of employment and a contract for service lies in
the nature of the relationship and the degree of control and autonomy. An employment contract
binds the employee to the employer, granting the latter substantial oversight over the employee’s
tasks, work conditions, and benefits, thereby ensuring a measure of job security and statutory
protections. In contrast, a service contract establishes a more flexible association between a client
and a service provider, with the latter maintaining independence over the execution of services,
albeit without the safeguards inherent to employment. The clarity of these contracts is paramount
in delineating responsibilities and rights, thus preventing legal conflicts and safeguarding the
interests of both entities within the bounds of the law.
 REFERENCES

Collins, H. (2010). Employment law. Oxford University Press.

Vettori, S. (2016). The employment contract and the changed world of work. CRC Press.

Macaulay, S. (2020). An empirical view of contract (pp. 399-414). Springer International

Publishing.

Honeyball, S., & Pearce, D. (2006). Contract, employment and the contract of
employment. Industrial Law Journal, 35(1), 30-55.

Barendrecht, M., & Barendrecht, J. M. (2007). Service Contracts:(PEL SC) (Vol. 3). sellier.
european law publishing.

Duan, Y. (2012, August). A survey on service contract. In 2012 13th ACIS International
Conference on Software Engineering, Artificial Intelligence, Networking and
Parallel/Distributed Computing (pp. 805-810). IEEE.