Beware of their unscrupulous practices especially for part timers. When they present the contract to you, please clarify with them whether it’s Contract Of Service or Contract For Service.
A contract OF service is an agreement where one person agrees to employ another as an employee, and the other party agrees to serve his employer as an employee. The employer must provide statutory benefits such as annual leave, sick leave, etc., as outlined in the Employment Act. They are also required to contribute Central Provident Fund(CPF) (for Singaporeans and PRs) under the CPF Act.
A contract FOR service is an agreement where a person or an entity is engaged as an independent contractor. This could involve self-employed person or vendors who are hired on a freelance basis to complete specific assignments or projects for a company in exchange for a fee. Under such work arrangement, there is no employer-employee relationship. and The person is not covered under the Employment Act and will not be entitled to the statutory benefits under the Act. As statutory benefits do not apply, the terms of engagement will be according to the contract agreed upon by both parties. The person, however, is required to pay compulsory MediSave contribution as a self-employed person.
They’d hired part timer students and classified them as Freelancer, and hence they will not contribute any CPF even if the employee is working on a short term part time contract. Would be part timer (especially students), please be aware of such practices whereby the employer/agency exploits this loophole by not contributing CPF. Please take note.
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