Contracts with individuals: types and features
There are three main types of contracts with individuals: labor contract (LC), service contract (SC) and contract with individual entrepreneur (IE).
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The above stated comparison illustrates that contract with individual entrepreneur has the lowest taxation, that is why sometimes employers try to replace labor contract with one with individual entrepreneur.
But it is important to know, that in case certain labor contract attributes take place, e.g. permanent working place, permanent salary, fixed job instructions, etc., such contracts are easily requalified by Court into labor contracts and company will be obliged to pay all unpaid taxes and social charges. The above stated comparison illustrates that contract with Individual Entrepreneur has the lowest taxation, that is why sometimes employers try to replace labor contract with one with Individual Entrepreneur.
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