The content of the article
- What is a civil contract
- With an individual
- With legal entity
- IP agreement with an individual
- GPC agreement with a foreign individual
- The difference between a labor contract and a civil law contract
- Classification of civil contracts
- Types of civil contracts
- Civil contract form
- Order of registration
- Document structure
- Mandatory details
- Civil contract with employee
- Hiring by agreement
- Employer Responsibilities
- Civil Contract Taxes
- For employer
- For employee
- Terms and conditions of termination of GPC agreements
- Pros and Cons of an Employment Agreement
GPA (decoding of a civil contract) is an agreement between an employee and an employer to perform a specific service or type of work. In contrast to the legal norms of the labor agreement, the conclusion of civil law is not always welcomed by the contractor, because it is limited in rights. For the employer, this document is an opportunity to reduce the cost of servicing the workplace..
What is a civil contract
According to legal terminology, a civil contract is an agreement between an individual or a group of persons and a legal entity. It is aimed at the emergence, amendment or termination of civil rights and obligations. The subject of the main legal arrangement is the performance of work, the result is drawn up by the act of acceptance, the parties are the employee and the employer, the norms of the Civil Code are applied.
With an individual
On the subject of the GPA are associated with the performance of work or the provision of legal services (or other) or with the transfer of property into ownership or use:
- Contract for the performance of work or work. Provides for the implementation of the described subject in a timely manner..
- Contract for the provision of services (public offer). A certain period is also set during which the specialist provides the services of the company. After the provision of services for a fee, termination of obligations occurs, payment of remuneration to an individual.
With legal entity
Allocate varieties of GPA concluded with legal entities. They are divided into transactions and contractual obligations:
- An agreement is drawn up (transaction, contract of sale, lease). Allocate real (agreement of accession), consensual, gratuitous and reimbursable, causal (definition of civil legal relationship).
- Sample civil contractual obligation. It is aimed at the production of work or the provision of services, it is in favor of a person, entrepreneurial and with the participation of citizens-consumers, property and organizational form.
IP agreement with an individual
If an individual entrepreneur needs a short-term or one-time service, a civil law agreement is drawn up. It is necessary to legitimize relations. Parties are determined with deadlines, payment procedure and cost. The contents of the assignment are clarified, the completed order is handed over by the act of acceptance of services.
The employee is not required to comply with a certain schedule, receiving money occurs after the assignment. If the agreement is drawn up several times for the same type of job, this is a labor agreement. When re-issuing a GPA, an administrative fine is imposed in the amount of 1,500 rubles (for a legal entity – 30,000), plus the activities of the company may be suspended for a month.
GPC agreement with a foreign individual
Work under a civil law contract with a foreigner is not much different from the same work concluded with a Russian. The content, procedure and conclusion of the paper is governed by the rules of the Civil Code. If the execution is one-time, they draw up a contract under which the foreigner agrees to fulfill it, and the customer must pay the money. Differences in civil law obligations between a foreign and a Russian citizen are:
- a foreigner requires a work permit, a valid visa is checked;
- the enterprise itself also requires permission to use foreign labor;
- when a person is in the Russian Federation in a visa-free regime, a patent is required, which can only be used in the region where he was obtained;
- when a foreigner is temporarily in the country, the contract can be carried out only in the territory of the region where he is registered;
- the territorial authority of the Federal Migration Service is notified of the employment of a foreigner.
The difference between a labor contract and a civil law contract
A special form is a civil contract concluded with the employer. It differs from the labor agreement by significant factors, such as:
- payment by agreement, and not twice a month;
- lack of paid leave, payment of travel expenses, severance pay, sick leave, reimbursement of expenses when using the personal property of the employee;
- lack of subordination by the contractor to the internal labor regulations, job descriptions;
- the contractor submits to the customer, performs labor functions;
- parties are required to conclude an agreement for a strictly limited period;
- focus on obtaining a specific result.
The advantages and disadvantages of concluding a civil contract for an employer are the following factors:
- a guarantee of service performance by a specified date;
- lack of payment for medical and social insurance;
- tax benefits are provided;
- the price of work is determined in advance;
- there is no control over the activities of the employee;
- the risk that the court or regulatory authorities will decide that the rights of the employee are violated, the agreement is drawn up incorrectly.
Classification of civil contracts
A certain classification of civil contracts is established, which differ in the following factors:
- On the legal side: consensual and real. The first is characterized by the establishment of the rights and obligations of the parties after they reach an agreement (consensus, collective agreement). A real agreement is considered if the rights and obligations arise after the agreement and transfer of things.
- By the availability of rights and obligations of the parties: unilateral and bilateral. A one-way transaction is characterized by the possession of rights of only one participant, the second has only obligations. In bilateral, both parties have rights and obligations.
- In whose interests is made up: in the interests of the parties, in the interests of a third party (the employee agrees to perform the work to a third party).
- Based on the conclusion: free and compulsory social. The first depends on the discretion of the parties, binding ones of the same name for one or both parties.
Types of civil contracts
There are several types of contracts of a civil law nature (GPC), which differ in subject, purpose and rights of the parties:
- Contracts – the contractor, an individual, performs certain work, submits the result to the customer, and an act is signed at the end. Standard contract for ordering.
- For the provision of services – a service is performed, concluded between the contractor and the customer, at the end it is paid. Differs in the non-material side of the subject.
- Orders – one party instructs the other to perform the service for a fee. The difference is the presence of a third party in the subject, the attorney acts by proxy.
- Agency agreement – the execution of a transaction by an agent on its own behalf, but at the expense of the other party. Payment after the submission of the report, there are no legal consequences. Agent acts at the expense of the entity.
- Commissions – commission of a transaction by a commission agent on his behalf on behalf of an employer-principal (pays for work). A person acts on his own behalf, but at the expense of the principal.
Civil contract form
According to how a civil contract is concluded, the following possible forms are distinguished:
- Written – drawing up an act, one document signed by the parties, is concluded between the legal entity and citizens.
- Oral – this form is intended for the conclusion of preliminary agreements for which a written document is not provided by law or by agreement of the parties
- Written form with notarization. Mandatory for some cases. It is carried out to eliminate the risks of violation of the law. In the absence of a notary’s signature, the document is considered void.
Order of registration
A GPC contract is drawn up between the customer service organization and the contracting individual, confirming the relationship between the enterprise and the citizen. It can be concluded in simple writing. Order of registration:
- indicate the date of preparation, name of the document;
- put down the name of the organization or full name of the IP;
- describe the work performed;
- mark the amount of remuneration;
- indicate the persons who executed the transaction;
- affix with signatures;
- after completion of work, sign the acceptance certificate.
The internal content of a civil contract consists of the mandatory elements provided for by law:
- dates, dates of completion;
- transport terms of the transaction;
- acceptance of work;
- exemption from obligations or factors for termination of the transaction;
- compulsory liability insurance;
- cases of force majeure;
- entry into force of a document;
- transfer rights;
- dispute settlement procedure;
- responsibility of the parties;
- details, signatures.
A civil contract consists of a set of conditions with the fixing of the rights and obligations of the parties. This combination makes up the paper content. The conditions are divided into:
- ordinary – in practice, they are included in the content, but do not affect reality; they do not need to be agreed upon (price, forfeit);
- random – not typical for the contract, but if they are included, they become legally significant;
- Significant changes – necessary and sufficient when concluding the agreement (the following items are considered significant: details of the parties, subject, deadline for fulfillment of obligations).
Civil contract with employee
When concluding a GPA agreement with an employee, it is governed by the Civil Code. The subject is the result of the work or the service performed. An employee is considered to be a member of the labor state; no employment record is made. The result of the implementation of the GPA is the act of acceptance of the services or work performed. After the mutual signing of the act by both parties, the employee receives the amount of remuneration specified in the agreement.
Hiring by agreement
Contracts of a civil law nature do not have the parties “employer”. It can be called a customer, a principal. The employee and the principal are equal in rights, draw up an agreement to perform one-time or limited-time work. The customer is required to pay in fact only the result, not time. If the deadlines are violated, the contractor undertakes to pay a fine.
According to the GPA, contributions for the Federal Social Fund are not paid, the remaining insurance premiums are much lower compared to the labor agreement. It is forbidden to accept workers with full material liability under the GPA (these include sellers, cashiers, storekeepers, security guards). It is concluded with programmers, managers, lawyers, to provide transportation services.
For an employee, GPA has negative and positive sides, which are the following factors:
- there is no submission to internal regulations, official subordination, job descriptions;
- remuneration goes for the amount of work;
- the employee needs to pay wages once;
- insurance premiums are paid by the customer;
- there is no entry in the work book, but seniority for calculating a pension is taken into account;
- you can’t go on vacation, sick leave can be arranged at your own expense, there is no retraining;
- intermediate position between a full-time employee and individual entrepreneur;
- no risks, except for damage to the customer upon delivery.
Mandatory execution by the customer in relation to the contractor of works or services includes:
- timely payments to individuals of wages, which cannot be less than the established minimum wage (minimum wage);
- the employer is obliged to keep documentation, provide reports for the FSS, MHIF, Goskomstat, the Pension Fund;
- payment of insurance premiums.
Check out the online service for reporting to the FSS.
A civil law contract becomes the subject of use by unscrupulous employers who offer to conclude it for an employee for a probationary period. This threatens the performer with the risk of unlawful dismissal, non-payment of the established fee, trial of unpleasant situations in court. The employer, proposing such an option to the hired employee, bypasses the legal procedure, does not enroll the state, although he is obliged to do so upon request (the measure is regulated by the Labor Code).
Upon signing this document and upon its expiration, the customer has the right not to renew it and conclude an employment contract with the employee. The Contractor loses the chance to receive the tariff rate, salary, bonus payments, remuneration. The disadvantages for an employee undergoing a probationary period under the GPA are the unaccounted length of service, the absence of annual paid leave.
Civil Contract Taxes
The amounts indicated in the GPA are charged insurance premiums to the Federal Compulsory Medical Insurance Fund (FFOMS), the Pension Fund of Russia (PFR), plus income tax is paid in accordance with the Tax Code. The Social Insurance Fund does not receive contributions from the employer, so the contractor loses social benefits. Payroll accounting, no personnel.
If the individual involved in the work is not an individual entrepreneur, the customer is obliged to withhold, calculate and transfer to the personal income tax budget from the amount indicated in the contract. When drawing up an agreement with businessmen, taxation is carried out by them independently – the company is not recognized as a significant tax agent. At the conclusion of civil law securities with the FL (individual), contributions to the PFR, FFOMS are paid.
If the employee is an individual entrepreneur, he is obliged to independently pay personal income tax on the amount. Cheat sheet: the rate is 13% for residents of the Russian Federation and foreign highly qualified specialists (this recognition occurs if his salary is 2 million rubles per year). The rate of 30% applies to non-residents of the Russian Federation, highly qualified foreign specialists when paid outside the framework of agreements.
Terms and conditions of termination of GPC agreements
If both parties have expressed their desire to terminate the agreement, an additional agreement is drawn up. If one of the parties disagrees, the second receives a notice of unilateral refusal to fulfill the contract. In case of conclusion of a contract, the conditions for termination are indicated directly in the text. The general termination rule states that unilateral refusal of execution is not allowed.
Pros and Cons of an Employment Agreement
Civil contract has its advantages and disadvantages. The difference in the labor agreement is in the signs:
Party / Factor
Salary guarantee, social package, social insurance, sign of seniority
Compliance with internal regulations
The leverage applies to the employee: routine rules, job descriptions
Timely payment of wages not lower than the minimum wage, inclusion of an employee in the staff, payment of vacation, days off, overtime, business trips