What is the difference between contracts of service and contract for services?
When there is contract of service the employee is a servant and when there is contract for services, he is an independent contractor. Under contract of service a man is employed as a part of the business and his work is done as an integral part of business, whereas under a contract for services, his work, although done for the business, is not integral to it but is only accessory to it. Factory employees, office clerical staff, agricultural hands and the like are clearly servants, garage proprietors, house builders, and dry cleaners are independent contractors. A typical instance, where a man might fall into either group depending on the circumstances, is that of a salesman. Similarly a chauffeur is a servant, but a taxi driver is not.