Economics/Business

What is a service contract/When use/importance/Who makes/Registration

Working with independent service providers and outsourced companies is already a reality in several companies, however, many of them end up neglecting the service provision contract and keeping agreements only by word of mouth. This lack of formalization , in addition to not providing security to the parties, can also generate numerous problems.

Thus, to avoid this type of friction, it is essential that you know how to write a service provision contract in a clear and objective manner.

In this post, we will talk a little more about the document, its importance and how to write it step by step. Do you want to clear all your doubts about the matter and avoid misunderstandings and legal proceedings? Read on.

What is a service contract?

It is a document that signs an agreement between the company and a service provider , which can be either a self-employed professional or an outsourced company.

This type of agreement is made through the signature of both parties in the document that foresees all the services and obligations of the contracted party, as well as the contracting party’s responsibilities.

Still, the service provision contract does not represent an employment relationship , because it has a stipulated period and can be renewed or not, if there is interest between the contracted party and the contracting party.

What does the law say?

According to article 594 of the Civil Code, the agreement can be applied to any type of lawful activity, performed manually or intellectually.

Regarding legal protection, the legislation instructs that the service provision contract must ensure the obligations and rights of the contracting party and contracted party during its term. Therefore, it is important that the document is prepared based on current laws so that it has legal validity.

When to use the service contract?

The service contract is important to formalize the activities of a company and guarantee more security to the parties. Thus, it should be used when the organization chooses to hire labor for a specific task .

In addition, there are different types of professionals and companies that act as service providers in different fields. Among them, the most common are:

  • consultancy ;
  • digital marketing;
  • Press office;
  • cleaning and maintenance;
  • safety;
  • transport;
  • accounting;
  • fumigation.

Why is it important?

The main importance of the service provision contract is to protect the parties . The document is responsible for bringing security to the work agreement and ensuring that the contracted service is carried out as planned.

Thus, the contract ensures, for example, that the contractor does not run out of service or that the contractor receives the right amount for the work done. In addition, it works as a quality control instrument , as it determines how the final result of the service should be.

Finally, if the contracting party or the provider does not fulfill their duties, the contract also offers legal support for one of the parties or both to seek justice in search of compensation .

Who should make the contract?

The contracting party is responsible for the provision of services and, ideally, it should be drawn up by the Personnel Department with the assistance of the legal department to avoid errors and future problems.

Thus, it is important that the DP pay attention to the contract, especially in agreements with natural persons, that is, self-employed persons. This is because, in these cases, there is a fine line between the provision of services and an employment relationship .

In this sense, requiring the professional to comply with a certain time, for example, can already create this relationship. In this way, the rules and rights imposed by the CLT will apply.

Does the service contract need to be registered?

The validity of the contract for the provision of services does not depend on registration in a notary office and notarization of the parties’ signature . In addition, the law does not establish that the contract must be in writing, that is, it is still valid if the agreement is made only verbally.

However, formalization is highly recommended to avoid differences in interpretation and conflicts . Thus, it is recommended to conclude the agreement through a written instrument, which contains all the clauses on the service provided and the duties of each party.

What must be included in the service provision contract?

A good service contract must contain all the basic information to regulate the signed agreement. Therefore, it is important that HR talks with the company or professional and agrees on the obligations of each party.

So, when writing the document, look for a clear and objective language , avoiding terms that are difficult to understand or that could generate ambiguous messages. Also, try to follow a structure and include all the important points.

Below, we list the main clauses that must be included in the document.

Qualification of the parties

The first item in the document should be the identification of each person involved in the employment agreement. To do so, enter all the personal data of the parties, such as:

  • full name;
  • CPF or CNPJ;
  • corporate address;
  • marital status;
  • nationality,
  • profession.

In the case of companies, it is recommended to include the name of the legal representative of the provider that will perform the service. In addition, it is necessary to identify the parties as contracting party and contracted party.

Object of the contract

Here, it should be clarified on which theme the parties have entered into an agreement, that is, which activities will be performed by the provider and how they should be performed.

But it is important that the description is detailed, with all the specifics and technical data clearly described to avoid disagreements regarding compliance.

Obligations of Contractor and Contractor

At this point, all obligations of the contractor and service provider must be listed. As far as the contractor is concerned, it is important to specify their responsibility for paying and providing information and subsidies for carrying out the work.

In the case of the contracted party, it is valid to inform the defined terms and quality parameters, confidentiality clauses, supply of invoices, among others.

Price and payment terms

As a rule, all service provision is remunerated . Therefore, in this part of the contract, you must specify what the remuneration for the activities will be and how it will be paid. It is common for payment to be made after delivery of the work, however, there is no rule and what is agreed between the parties is valid.

Also, make it clear what the payment method will be, the amount of installments, if any, and charges that may apply, such as late fees.

Non-compliance and termination

Another piece of information that must be clearly described in the contract for the provision of services is related to non-compliance with the agreement.

Thus, establish what will happen in the event of non-compliance by any of the parties and what are the conditions to terminate the contract before the stipulated period. In this part, it is worth informing if non-compliance will generate a fine and what will be the amount paid.

In addition, it is recommended to establish a period of notice for the termination of the contract by either side. Typically, 30 days notice is used.

deadlines

As already mentioned, the service provision contract must be valid for a period of time. However, it is important to be aware that, according to Brazilian legislation, the provision of services cannot be agreed for a period exceeding 4 years.

With this in mind, establish a period of the contract and make it clear that it can be renewed if it is in the interest of both parties.

In addition to the total contract period, this part of the document also includes delivery times for contracted services , detailed schedules and issues related to delays.

Forum and signatures

At the end of the document, it is important to inform the chosen forum in case there is a legal dispute . Usually, the choice is mutually agreed between the parties. In addition, it is necessary to include the signatures of the contractor and contractor and, if possible, the signature of at least two witnesses.

Other contractual provisions

In addition to the aforementioned structure, the personnel department can also include other contractual clauses, depending on the specifics of the contracted service. Some examples are audit clauses, guarantees, intellectual property, prohibition of service outsourcing, among others.

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