Working without a work book under an agreement or contract: pros and cons, is there a difference?

When is it possible to work under an employment contract without a work book?

An employment contract, drawn up in accordance with all the rules, signed and sealed, has strong legal force.
In principle, it is the main document in labor relations, regardless of whether notes are made in the labor contract or not. In practice, questions may arise: is such work included in the length of service, are insurance payments and taxes included? If an employment agreement is concluded between the parties, the employer is obliged to report to the Pension Fund for the employee, indicating the time of work and the insurance premiums accrued for him, as well as pay accrued fees and personal income tax. If the employer is honest, then all these conditions are met.

Cooperation without a work book: positive and negative aspects

For the employee, there are practically no special disadvantages with this type of cooperation scheme. The main thing is to comply with the requirements of the Labor Code of the Russian Federation, even if some of the documents are missing.

The employer must exercise special care and caution. Otherwise, there is a high probability that the court will subsequently force the recognition of the existence of an employment agreement. Most problems arise due to incorrect interpretations.

For the employer, the positive aspects are described as follows:

• No obligation to pay insurance premiums for the employee.
• Vacations and sick leave are not issued or provided.
• No liability for work-related injuries.
• There is no need to include a citizen on the staff or provide an official workplace.

Employees can set their own schedule. In this regard, there is no complete control from the second party. The parties to the contract are equal. The downside is the ability to terminate the agreement unilaterally. Confirming your work experience is becoming quite difficult.

Working under a contract without obtaining a work book: disadvantages and some nuances

It so happened in our country that there is a certain segment of the population who work without obtaining a work book. The most striking examples are tutors, nannies, etc. In addition, those who work part-time for the company can legally work without an entry in the work book. Of course, if a person wants it, they can give him an additional mark. But, as a rule, almost everyone refuses this. In the event that a person nevertheless decides to work without registration in a work book, but with a concluded contract, it is necessary to know about all the disadvantages. The disadvantages of working simply under a contract include:

1. Unpaid vacation. Not a single civil law contract provides for a vacation payment clause.
2. The employer makes contributions only to the pension fund and the compulsory health insurance fund
3. The contract is concluded for a certain period, that is, after its expiration, the employer has the right to terminate the relationship
4. It is possible to terminate the contract ahead of schedule, while the employer is not obliged to notify the person two months in advance, as would be the case if there was an entry in the work book
5. There are no additional payments, such as the thirteenth salary, quarterly bonus, monthly incentives, etc.
6. No sick leave payment
7. If a woman becomes pregnant and goes on maternity leave, the employer is not obliged to pay her benefits. A woman will have to go to the social welfare departments and receive a minimum amount
8. The employer has no liability to the employee in the event of a work-related injury. He is not required to pay sick leave
9. If an employee violates the deadline for completing the work entrusted to him or does not perform it as well as the employer required, then the company administration may impose a fine on him.

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Violation of registration rules and employer liability

They are exempt from issuing work books only if the conditions mentioned above are met. In other situations, we are talking about a clear violation of the rights of subordinates. In this regard, negative consequences appear.

An unscheduled inspection is carried out for a company if employees send a complaint to regulatory authorities regarding a violation of rights. However, the law prohibits warning in advance about such events. For a manager, they often come as a complete surprise.

An employee’s complaint often becomes the basis for demands for additional documents from the manager. If a GPC agreement was drawn up with an employee, this means that they will require grounds for using exactly these types of agreements.

If serious offenses are detected, officials are brought to administrative responsibility.

Do I need entries in the work book for a fixed-term employment contract?

• First you need to issue a hiring order. Without it, nothing can be entered into the work record;
• as soon as the order is ready, the name of the company (employer) is first written down in the labor report;
• enter the entry number (in column 1), in column 2 indicate the start date for performing labor duties;
• in column 3 indicate the employment record itself, the name of the position and the company division are also written here;
• in column 4 indicate the details of the foundation document (write the date, as well as the number of the employment order).

These acts note that the employer must record all changes in an employee’s career (transfers, promotions, demotions) in writing. Entries are made in Russian, observing literacy and numbering.

What is the difference between an employment contract and a work book?

Good afternoon! I’m 21 years old, I’m very interested in the difference between an employment contract and a work record book. Does length of service count towards an employment contract? and when receiving a pension, will the years worked under the labor contract be taken into account. Thank you in advance for your answer.

Employment contract - An agreement between an employee and an employer, according to which the employee undertakes to personally perform work in a specific position corresponding to his qualifications. A work book is a document that reflects, so to speak, your career path in life. Previously, entries in the work book were mandatory and were made by employers to confirm work experience. Now the employer makes contributions for the employee as a tax agent without issuing a work book. But an employment contract is an important written document that serves as written evidence of your legal connection with your employer.

When else is the absence of a work book considered a type of norm?

The law does not require paperwork when it comes to a remote work scheme. 2013 was the year when amendments were made to the law regulating such work. This is especially important for specialists if they are outside the employer’s territory, including in other regions and cities.

The work is performed online, and documents are exchanged electronically under such circumstances. This provision does not apply to other employees who remain on the employer's premises.

If the workplace is the first for a new subordinate, they are allowed to refuse work records. But after completing the initial documentation, you still need to correct the gap. You can also refuse the book in the case of students undergoing internship.

Registration of an employee under an employment contract without a work book

When filling out the contract, the applicant must write his full name, passport details, address where he is registered, his residential address, identification code, bank account to which money for the work performed will be transferred. Such an employment contract without a work book is printed in two copies. One remains at the enterprise, and the second is kept by the employee. Both copies are signed by the employer and the specialist, and then stamped.

Hello! I got a job as a bookbinder in a printing house under an employment contract. I myself am on disability and am registered with a psychiatrist. I worked there for 2 weeks. Of course, I didn’t succeed in everything right away, and then they told me that there was no work. In general, they told me that they would call, but 2 months have passed and no calls. My question is: Can they deliberately not call me to work because they didn’t like me?

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The provisions of the Labor Code on the severance of labor relations, as well as regulatory requirements regarding work books, did not undergo changes in 2019. Therefore, when filling out a work book upon dismissal, you can safely follow the rules that were in force in 2019.

If it is necessary to make a record of dismissal of one’s own free will, refer to paragraph 3 of Article 77 of the Labor Code of the Russian Federation. Please note : all words in this case cannot be abbreviated. Writing "p. 3 tbsp. 77 of the Labor Code of the Russian Federation" will be regarded as erroneous).

Fixed-term employment contract: entries in the work book

When hiring a new employee, the employer becomes obligated to maintain a work record book. The only exceptions are part-time workers. Entries for them are made at will on the basis of a written application.

Termination of a fixed-term employment contract must be accompanied by a written warning from the employer to the employee about the termination of the contract. Notification must be submitted at least 3 days before the end of the period. An exception is performing work for an absent person.

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Student agreement

An employer can enter into an apprenticeship agreement with:

• a new employee for professional training;
• with a permanent employee for training or retraining without interruption (with a break) from production.

The student agreement is considered an additional document to the main employment contract. Consequently, when drawing up a student agreement, no entry is made in the work book. The employee undergoing training must have a record of employment under a standard contract.

Training can be organized in the form of individual or collective training, in the form of courses and in other forms.

The student agreement must contain:

1. Details of the parties.
2. Description of the specialty, profession or qualification that the employee receives.
3. The manager's obligation to provide the employee with the opportunity to learn.
4. The employee’s obligation to undergo prescribed training and work in the acquired profession for the period of time specified in the contract.
5. Training period.
6. Salary during the training period.

The contract may contain other information necessary for completing the training.

After completing training, the employee does not undergo a probationary period (if he is a newly arrived employee). In the event that an employee does not fulfill his duties after receiving a specialty, the employer may demand the return of the money that was paid to him during training, as well as other monetary compensation.

The student agreement terminates upon expiration of the period specified in it.

Courses, Seminars, Trainings

Can an employment contract be concluded without a work book in 2021? Yes, but such registration of employment will be considered legal only in two cases: when hiring a part-time worker for a non-main job; when concluding an employment relationship with an employer who is not an individual entrepreneur. Under any other circumstances, execution of a contract without a work book in 2021 is considered an offense and threatens the employer with administrative liability. When hiring a new employee, a legal entity or individual entrepreneur is required to properly draw up his work record book and make a record of employment in the “Work Information” section. In 2021, registration under an employment contract without a work book in the case of part-time work provides the employee with absolutely all the guarantees provided for by the Labor Code. The period of part-time employment is included in the length of service, and the employer pays all required contributions to the Social Insurance Fund, Pension Fund and Compulsory Medical Insurance Fund. By the way, if a part-time worker expresses a desire to make an entry about part-time work in the work book and brings a certificate from his main place of work, the HR department has no right to refuse him.

When hiring a new employee under an employment contract, you must make a corresponding entry in his work book within five days (except for the cases described above). If for some reason, even by pure chance or oversight, the employer did not do this, the guilty official may incur disciplinary liability, and the organization as a whole may face financial or administrative liability.

The difference between work under the Labor Code of the Russian Federation and the GPC agreement

The main difference is that a person is deprived of the benefits provided for by the Labor Code. When registering under the Labor Code of the Russian Federation, the duration of working hours is regulated, and the right to weekends, vacations, and sick leave is given.

Fulfilling obligations under a civil law agreement (civil agreement) is another matter. The parties negotiate the term of cooperation and the amount of remuneration. Socially, a person is less protected. However, the employer must also pay contributions to the funds and withhold income taxes from employees.

But in some cases, a civil law contract is suitable. For example, to perform one-time work: installing plastic windows, renovating a room, and so on. The GPC agreement can be turned into a regular contract. Retraining occurs on the basis of Article 11 of the Labor Code and is permitted only through judicial proceedings.

As a rule, this situation arises when a person goes to court and provides evidence of systematic fulfillment of duties. The court may side with the plaintiff.

If an employee causes losses, then more can be recovered under the Civil Code. Damages and lost profits are compensated.

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Working under a contract without a work book: pros and cons

But the disadvantages of the studied labor relations are much greater. Working under a tenancy agreement without a work book implies, as you might guess, good earnings. At the same time, it will be necessary to take into account that no social or labor guarantees will be provided to the employee. As was said, you can’t count on sick leave, vacation and, as a rule, bonuses.

It is recommended to avoid such work. In fact, many employers deceive their subordinates in every possible way if they do not have employment records in their work books. Therefore, it is better to avoid such bosses.

Is it possible to do work without registration?

Expert opinion

Makarov Igor Tarasovich

Legal consultant with 8 years of experience. Specialization: criminal law. Extensive experience in document examination.

The form must be issued for each person who performed duties for more than five days. The rule was established by Art.

66 Labor Code. Failure to fill out the form will constitute a major violation of labor laws.

Inspectors will issue fines if they find violations.

When a person works part-time, the entry is made at his request.

A contract must be signed with the new specialist and an entry made on the form.

But there is another way to legally formalize the relationship. This method is suitable if you need one-time provision of services. An agreement for the provision of services is concluded, its operation is regulated by Chapter 39 of the Civil Code.

The main difference: the employment relationship is of a continuing nature, and the GPC agreement is concluded to perform one-time work.

Sometimes civil law relations are created in order to cover up labor relations. First of all, it is beneficial for the manager. You can save on paying for sick leave, vacations, and not provide a package of social services.

If a service agreement is signed, there is no need to fill out a form. Instead of wages, a person receives remuneration for work. Moreover, the contract may establish sanctions for the provision of low-quality services.

The right to receive a social package is given only to those registered under the Labor Code. If a specialist performs duties under a contract for the provision of services, he will not have the right to vacation or sick leave.

Important! The book is not issued when a GPC agreement is concluded. The duration of the work, the subject of the agreement and other conditions are discussed in the contract. The provision of services is regulated by civil law.

So, if a GPC agreement is concluded, the book is not issued, and there are no violations of the law.

Fixed-term employment contract (example of a work book entry)

When hiring an employee under a fixed-term employment contract, is it necessary to write in the work book: “Accepted. under a fixed-term employment contract? Indeed, in the next notice of dismissal we will write: “Dismissed due to the expiration of the employment contract”

Instructions for filling out work books, approved. Resolution of the Ministry of Labor of Russia dated October 10, 2003 No. 69 does not provide for making an entry in the work book about the urgent nature of the concluded employment contract. This is due to the fact that labor legislation provides for the possibility of transforming a fixed-term employment contract into a contract concluded for an indefinite period; for example, in the case provided for in Part 4 of Art. 58 of the Labor Code of the Russian Federation: when neither party has demanded termination of a fixed-term employment contract due to its expiration and the employee continues to work.

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The difference between an employment contract and a civil contract

A frequently encountered violation when concluding a contract is the inclusion in the employment contract of a condition regarding the duration of the employment contract in cases where the employment contract cannot be concluded for a certain period. This violation may lead to labor disputes.

As we have already noted, labor relations arise between an employee and an employer on the basis of an employment contract

concluded by them in accordance with the Labor Code of the Russian Federation, in cases and in the manner established by labor legislation and other regulatory legal acts containing labor law norms, or the charter (regulations) of the organization (Article 16 of the Labor Code of the Russian Federation).

Pros and cons of hiring under a contract without a work book

There is another nuance that can be regarded as a minus. Reputation. After all, all the ups and downs of your working life will be reflected in the document. Does it always depend on the employee? It is no secret that in Russia, shell companies or simply dishonest employers are very common .

And it depends on him what kind of pension you will be accrued ( Federal Law No. 173-FZ “On Labor Pensions in the Russian Federation” ). Therefore, the Pension Fund carefully checks the correctness of the entries in the book and its authenticity .

When can you work without a work permit?

The current rules of the Labor Code of the Russian Federation define life situations in which any person can fulfill labor obligations without a work book. Such circumstances are due to the specifics of work activity.

First of all, this opportunity is available to those people who have already entered into a working relationship with the company, but want to get an additional position in another organization.

Another option is work in the interests of an ordinary person.

These methods are most often resorted to in an effort to increase income and improve the quality of life.

Part-time work

Part-time work is a professional activity after the end of working time in the main position. Such obligations can be fulfilled in several organizations. Their number is not limited by current regulations.

An agreement of this nature must necessarily reflect the fact that the place of activity is not the main one.

There are some restrictions. Parallel activities are not permitted for people under eighteen years of age, and if the work has a harmful and dangerous climate.

Registration into an organization itself is similar to the general rules. The person is required to present a personal document, information about completing training in the profession, and a medical specialist’s report on suitability for work.

But the length of the day is different. It should not be more than four hours a day. The exception here is a day off at the main place. At this time, a person can work all day. The monthly duration should not be more than half the total duration of the main job. This restriction does not apply if the main activity was suspended due to non-payment for work or refusal to transfer.

The amount of income received will be determined based on the time periods of work operation. If the condition of the agreement is a specific result, payment will be made after achieving it.

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Labor Code. A labor contract is an agreement between an employer and an employee on mutual rights and obligations, according to which the employer undertakes to provide work and payment for it in accordance with the norms of labor legislation, a collective agreement, local regulations, and the employee undertakes to perform labor duties under supervision and management of the employer, comply with internal labor regulations. Topic: labor code, employment contract, sample employment contract, fixed-term employment contract, employment contract 2021, conclusion of a contract, employee contract, work contract, labor law, work book. Personal website - https://juristalekhin.ru/ VK group - https://vk.com/jurist_alekhin Youtube channel - https://vk.cc/7HxXML Depending on the duration of the contract, it can be:

➖employment contract at the main place of work, ➖part-time work, ➖temporary work, ➖seasonal work, ➖home work, ➖remote employment contract, ➖work by minors, ➖state/municipal service (regulated by special regulatory legal acts).

Employment contract or self-employment: what to choose?

Created 09/18/2020 08:15 Published 09/18/2020 08:15 Author: Administrator The other day, the Federal Tax Service announced that the number of registered self-employed citizens had reached 1 million, and the amount of income on which tax was calculated was 130 billion rubles. These indicators are direct evidence of the rapidly growing interest of citizens in the new tax regime. With the advent of the self-employment regime, many people had a question: is it worth continuing to perform their functions under an employment contract or is it easier to register as self-employed? After all, at work we are deducted 13% of our income, and in the case of NAP we will pay a maximum of 6%. Yes, reducing the tax burden is always beneficial for the employer. However, is everything really so good? Is the game worth the candle? In this article, we will analyze in detail what you risk by registering as a self-employed person.

Previously, we already reviewed the main points of this regime in the article Professional Income Tax (PIT) and looked at How to reflect the services of a self-employed person in 1C: Accounting ed. 3.0.

So let's get started.

1. Arrangement of the workplace

When starting cooperation, the first stage of interaction is always the conclusion of an agreement. And in the case of drawing it up with the employer, we are based on the norms of the Labor Code of the Russian Federation, and when it is an agreement between the self-employed and the customer - the Civil Code of the Russian Federation. This is where the main differences in the rights and obligations of the parties begin. According to labor legislation, the employer is obliged to provide his employee with the technical ability to perform his job duties, which follows from the norm of Article 22 of the Labor Code of the Russian Federation. That is, if you work as an accountant, and for this you need a computer, a printer, a 1C program, Internet access to send reports and much more, then you must be provided with these tools. If you provide services as a self-employed person, then you will have to purchase everything you need to conduct your business yourself.

2. Vacation

Another key difference is rest time. According to Section 5 of the Labor Code of the Russian Federation, the employer is obliged to provide the employee with annual paid leave for a period of at least 28 calendar days. At the same time, when you work independently, your rest time is not regulated, you are not paid in any way, and your workplace is not reserved for you. Accordingly, a situation may arise that you decided to take a break, and not only did you not earn anything during this time, but the client, for lack of you “at hand,” went to another specialist.

3. Compensation upon dismissal

Ending a relationship also happens in different ways. Upon termination of an employment contract, employees are paid compensation for unspent vacation days, by agreement of the parties - severance pay, and employees, within 30 calendar days after dismissal, have the right to pay for sick leave from the previous employer if they have not found a new job during this period. If you terminate a civil contract, then you are not entitled to any payments, unless otherwise provided by the contract itself.

4. Benefits for temporary disability

The employer also provides compulsory social insurance for employees, which is important when you get sick or are going on maternity leave. After all, it is from the transfers made by your employer that you then receive payments from the Social Insurance Fund. You, of course, can start replenishing your rainy day fund on your own, only then it turns out that you are saving money for yourself. In the case of an employment contract, the company pays for you.

In addition to the FSS bodies, social insurance also includes the Pension Fund of the Russian Federation, the situation with which, if you are self-employed, is as follows: either you do not accumulate pension experience and the funded part of the pension, or you enter into a contract for voluntary insurance and, again, pay contributions out of your own pocket .

5. Simple

We recently faced the coronavirus pandemic, which has left most businesses with paid downtime. Naturally, if we are talking about self-employment, no one will pay you for the time you do not work. You assume all risks associated with lack of work or inability to carry out activities.

6. Impossibility of switching from employment to self-employment with a former employer within 2 years after dismissal.

By the way, if you decide to switch to the NPA regime, then in the next 2 years you will not be able to provide services to your former employer, even if you worked with him not under an employment contract, but under a civil law agreement. This restriction was introduced by law in order to avoid situations where the employer forces you to switch from an employment contract to self-employment. It would, of course, be much more profitable for enterprises to cooperate with individuals on an NAP than with employees under an employment contract: there is no need to calculate and pay insurance premiums, there is no need to perform the duties of a tax agent for personal income tax, and there is much less responsibility, as well as reporting.

Tax inspectors are now closely monitoring this point and will “catch” you on the very first salary report you submit, and will charge additional taxes and penalties.

7. Income restrictions

In addition to the limitation on former employers, the law establishes income that is not recognized as an object of taxation in the NAP system. These are the income:

— from the sale of real estate and vehicles;

- state and municipal employees, with the exception of income from leasing (renting) residential premises;

— from the sale of shares in the authorized capital of organizations, shares, securities and derivative financial instruments;

— from conducting activities within the framework of a simple partnership agreement or a trust management agreement;

- received in kind;

- from the arbitration department, from the activities of a mediator, appraisal activities, the activities of a notary engaged in private practice, and advocacy.

8. Tax capital

At the same time, in order to attract individuals to the new regime, the Government of the Russian Federation approved tax capital. That is, those who became self-employed in 2021 do not need to pay tax until the end of the year until it is exhausted. The amount of tax capital is 22,130 rubles, of which: 10,000 rubles is the main tax deduction and 12,130 rubles is an additional tax deduction.

If in 2021 you do not use the entire bonus from the state in the amount of 22,130 rubles, then the remainder of the amount of 12,130 rubles will “burn out” on January 1, 2021.

But the remainder of the main tax capital from the amount of 10,000 rubles will remain with you, but will act differently.

In 2021, you may not pay taxes until you reach this amount, and in 2021, your tax rates will be temporarily reduced: up to 3% for services provided to individuals, and up to 4% for services provided to legal entities. They will be valid until the deduction amount is completely exhausted. When the tax capital amount is spent, tax rates will increase back to the standard 4% and 6% respectively.

As you can see, there is another side to the coin. Therefore, before you go into self-employment, think and make an informed decision!

Author of the article: Alina Kalendzhan

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Comments

0 Alina Kalendzhan 09/25/2020 04:16 I quote Love:

Good afternoon I liked the article. But I didn’t quite understand about tax capital. I will look at a more extensive disclosure of information about NAP. Thanks a lot!

Good afternoon.
The tax capital is the amount of tax that you may not have to pay this year. For example, you will now register as self-employed and by the end of the year you will provide services to legal entities worth 600,000 rubles. Let's calculate the tax 600,000 * 6% = 36,000 rubles. From them we subtract the tax capital and get the amount payable of 13,870 rubles. If the tax is less than the tax capital, then pay nothing. If we consider the same situation in the new year, then the amount of capital will no longer be 22,130, but 10,000 rubles. And the calculation will be carried out at reduced rates up to this limit. I hope I explained it clearly))) Quote 0 Love 09.23.2020 21:32 Good afternoon! I liked the article. But I didn’t quite understand about tax capital. I will look at a more extensive disclosure of information about NAP. Thanks a lot!

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Is an entry made in the work book for a fixed-term employment contract?

When an employer accepts a new employee into his staff, he has obligations regarding the maintenance of his work record book (LC). The only exceptions are part-time workers; entries in their Labor Code are made on the basis of a written application and at will.

By law, any relationship between employer and employees must be formalized, in particular through documents. The entry for a fixed-term employment contract in the work book is somewhat different from others, so it is important for employers to know in which cases it is better to enter into time-limited agreements.

Responsibility of the parties

By concluding an employment agreement, the employer has the following obligations:

• issue a pension insurance certificate if the employee is employed for the first time;
• timely transfer contributions and payments to social, pension and compulsory health insurance funds;
• arrange insurance for the employee against an accident at work or occupational disease.

Need to know! Payment of insurance and other contributions by the employer is obligated by the contract. If these contributions are not indicated in it, the employer is exempt from paying them.

The difference between registration according to labor and labor

You don’t quite understand what we’re talking about: an employment contract can be concluded for any period, both fixed-term and indefinite, in both cases an entry is made in the work book. Civil relations are, as a rule, one-time custom-made in nature, labor relations are ongoing and permanent.

The employment contract specifies the position, department, salary, place of work, bonus, etc., but the work book only specifies the position and department. Upon admission, an entry is made into the employment contract, and a second copy of the employment contract (signed on both sides) is given to you.

Employment agreement and its difference from an employment contract

According to the terms of the employment agreement, the citizen undertakes to perform individually determined work for the enterprise for a fee, including at his own risk, consisting of performing only actual actions (for example, repairing a roof, painting a fence, etc.). When performing work under an employment agreement, an application for employment is not filled out, an order is not issued, entries are not made in the work book, a time sheet is not kept, annual leave is not provided, sick leave is not paid, etc.

When hiring under an employment contract, a job application is drawn up; when hiring under an employment contract, a contract is signed. After this, an employment order is issued for the position provided for in the staffing table for each employee hired under an employment contract. Standard statistical accounting forms are also maintained, and appropriate entries are made in the work book. Performing work in a certain specialty, qualification, position with the employee’s subordination to internal labor regulations means performing work as a worker or employee of a given enterprise, i.e. work under an employment contract.