Service provision contract: everything you need to know to make one
Posted: Mon Jan 06, 2025 4:02 am
A service provision contract is a formal agreement between two parties, in which one of them (provider) undertakes to perform a specific service for the other (contractor), in exchange for remuneration, without there being an employment relationship, as established by the Civil Code.
In this blog, we will explore how to write a service provision contract , covering the fundamental elements that must be included to ensure protection and transparency for both parties.
In addition, you will learn about the laws governing this contract , the key differences between service and contracting contracts , a practical template to facilitate the preparation of your document and the fundamental rights guaranteed by this type of agreement. Finally, we will discuss who is qualified to create this contract , emphasizing the importance of effective contract management.
What is a service provision contract?
The Service Provision Contract is a legal document that formalizes the agreement between two parties involved: the service provider and the client , and can be established between individuals, legal entities, or both . These documents detail in detail the services to be performed, the financial compensation, the stipulated deadlines, as well as the obligations and rights of each party.
The contract is crucial to protect the parties involved, ensuring that all services provided and their respective payments are made. In addition, the document is important to guarantee the india mobile number data management of the quality of the service provided , allowing an objective evaluation of the work carried out in comparison to what was initially contracted. Thus, they are present in many companies covering a wide range of services such as: cleaning and pest control, information technology (IT) , communication, marketing and transportation or travel services , emphasizing the importance of customization for each type of service offered.
What law governs the service provider contract?
In Brazil, the service provision contract is governed mainly by the Civil Code, in its articles 593 to 609. These articles establish the general rules on service contracts , including the definition of services, the rights and obligations of the parties, the form in which the contract must be concluded and the conditions for its termination, see:
Art. 593. The provision of services that are not subject to labor laws or special laws shall be governed by the provisions of this Chapter.
Art. 594. Any type of lawful service or work, material or immaterial, may be contracted for remuneration.
In addition to the Civil Code, depending on the nature of the service, other specific statutes and laws may be applicable. For example, Law No. 8,666/1993 (Bidding and Contracts Law) regulates the contracting of services by the public administration . Law No. 13,429/2017 deals with employment relationships in companies that provide services to third parties and temporary work . Furthermore, this provision will be made for a fixed period , with the possibility of renewal or not, without establishing an employment relationship between those involved. This is provided for in art. 4 of this law:
Art. 4 – A § 1 – The service provider company hires, remunerates and directs the work carried out by its workers, or subcontracts other companies to carry out these services.
Art. 4 – A § 2 – There is no employment relationship between workers or partners of service providing companies, regardless of their sector, and the contracting company.
Formalizing a service provision contract is a fundamental step in hiring a company or independent professional, representing not only a measure of legal security for both parties involved, but also an effective quality control mechanism.
It is crucial to highlight that, unlike traditional employment relationships regulated by the CLT (Consolidation of Labor Laws) , service provision contracts are characterized by an autonomous work relationship, without an employment relationship , which requires compliance with specific legal conditions to maintain this autonomy.
Furthermore, for areas such as construction , health and education , there are additional sectoral regulations that need to be considered . Given this complexity, consultation with a specialized lawyer becomes essential to ensure compliance with all legal aspects, guaranteeing a transparent, safe and beneficial relationship for all involved.
In this blog, we will explore how to write a service provision contract , covering the fundamental elements that must be included to ensure protection and transparency for both parties.
In addition, you will learn about the laws governing this contract , the key differences between service and contracting contracts , a practical template to facilitate the preparation of your document and the fundamental rights guaranteed by this type of agreement. Finally, we will discuss who is qualified to create this contract , emphasizing the importance of effective contract management.
What is a service provision contract?
The Service Provision Contract is a legal document that formalizes the agreement between two parties involved: the service provider and the client , and can be established between individuals, legal entities, or both . These documents detail in detail the services to be performed, the financial compensation, the stipulated deadlines, as well as the obligations and rights of each party.
The contract is crucial to protect the parties involved, ensuring that all services provided and their respective payments are made. In addition, the document is important to guarantee the india mobile number data management of the quality of the service provided , allowing an objective evaluation of the work carried out in comparison to what was initially contracted. Thus, they are present in many companies covering a wide range of services such as: cleaning and pest control, information technology (IT) , communication, marketing and transportation or travel services , emphasizing the importance of customization for each type of service offered.
What law governs the service provider contract?
In Brazil, the service provision contract is governed mainly by the Civil Code, in its articles 593 to 609. These articles establish the general rules on service contracts , including the definition of services, the rights and obligations of the parties, the form in which the contract must be concluded and the conditions for its termination, see:
Art. 593. The provision of services that are not subject to labor laws or special laws shall be governed by the provisions of this Chapter.
Art. 594. Any type of lawful service or work, material or immaterial, may be contracted for remuneration.
In addition to the Civil Code, depending on the nature of the service, other specific statutes and laws may be applicable. For example, Law No. 8,666/1993 (Bidding and Contracts Law) regulates the contracting of services by the public administration . Law No. 13,429/2017 deals with employment relationships in companies that provide services to third parties and temporary work . Furthermore, this provision will be made for a fixed period , with the possibility of renewal or not, without establishing an employment relationship between those involved. This is provided for in art. 4 of this law:
Art. 4 – A § 1 – The service provider company hires, remunerates and directs the work carried out by its workers, or subcontracts other companies to carry out these services.
Art. 4 – A § 2 – There is no employment relationship between workers or partners of service providing companies, regardless of their sector, and the contracting company.
Formalizing a service provision contract is a fundamental step in hiring a company or independent professional, representing not only a measure of legal security for both parties involved, but also an effective quality control mechanism.
It is crucial to highlight that, unlike traditional employment relationships regulated by the CLT (Consolidation of Labor Laws) , service provision contracts are characterized by an autonomous work relationship, without an employment relationship , which requires compliance with specific legal conditions to maintain this autonomy.
Furthermore, for areas such as construction , health and education , there are additional sectoral regulations that need to be considered . Given this complexity, consultation with a specialized lawyer becomes essential to ensure compliance with all legal aspects, guaranteeing a transparent, safe and beneficial relationship for all involved.