Abstract: Labor contract and labor service contract are very confusing, both of which are based on living labor, so it is difficult to distinguish them correctly in practice. But they are fundamentally different. A labor contract is an agreement between a laborer and an employer to establish a labor relationship and clarify the rights and obligations of both parties. Labor contracts can be divided into broad sense and narrow sense. A labor contract in a broad sense refers to all agreements related to the provision of live labor services (i.e. labor services). The narrow sense of labor contract only refers to the general employment contract. The labor contract is developed from the employment contract. Therefore, it is of great significance to distinguish these two kinds of contracts correctly both in theory and in practice.
[Keywords:] labor contract, labor contract, employment contract, contract.
I. Labor Contract and Its Characteristics
Labor contract is a kind of legal system produced in social production. It originated from the employment contract in the traditional civil law. "From the employment contract to the labor contract, it is a socialized process [1]". Since the emergence of capitalist mode of production, labor contract has become an important content of legislation in various countries. First, a few industrialized countries recognized the legal effect of the labor contract in the civil law. Later, since Belgium promulgated the labor contract law in 1900, many capitalist countries have successively promulgated the labor contract law [2], and stipulated the special labor contract law in the labor law or listed the special chapter of the labor contract in the labor code, specifying the content and form of the labor contract, as well as the conditions and procedures for conclusion, modification and termination. At present, many countries in the world have legislation on labor contracts, which has been established as a legal system to adjust the relationship between workers and employers. Since 1986, China began to implement the labor contract system in accordance with the Interim Provisions on the Implementation of the Labor Contract System in State-owned Enterprises.
So, what is a labor contract? At present, the definition of labor contract has basically reached a consensus. According to the legal definition of labor contract in Black’s Law Dictionary: "Labor contract is an agreement made between employers and employees on labor management, working conditions, wages, allowances and rewards and punishments". Some scholars in China believe that "labor contract is an agreement between workers and employers to establish labor relations and clarify the rights and obligations of both parties [3]". It is said that "a labor contract is a labor contract, which is an agreement on the rights and obligations of both parties reached through consultation between workers and employers according to law [4]". It is also said that "labor contract is a labor contract, which is an agreement reached between workers and employers on labor rights and obligations [5]". Article 16 of China’s Labor Law defines a labor contract as: "A labor contract is an agreement between a laborer and an employer to establish a labor relationship and clarify the rights and obligations of both parties". Therefore, it can be seen that the labor contract is a legal form to establish the labor relationship between workers and employers, and an important means to organize social labor, rationally allocate labor resources, stabilize labor relations, and promote the development of social productive forces. According to this agreement, workers become a member of the employer, and have the obligation to complete the production tasks and work tasks of the employer, and have the obligation to abide by labor discipline and internal rules and regulations; The employer is obliged to pay labor remuneration and provide working conditions, labor protection, insurance and welfare benefits [6].
It can be seen that the labor contract has its legal characteristics obviously different from the civil contract:
1. The subject of labor contract is specific. The main party of a labor contract must be the employer. This mainly refers to: enterprises, individual organizations, private non-enterprise units and other organizations, but also includes state organs, institutions and social organizations that sign labor contracts with workers. The other party of the subject must be the laborer himself, that is, the laborer must be over 16 years old and have certain working ability, including domestic citizens, foreigners and stateless persons.
2. Both parties to a labor contract are subordinate in their duties. After the conclusion of the labor contract, the laborer is recruited as a member of the employing unit, which creates personal subordination, enjoys the rights and assumes the obligations of the employees of the unit internally, and engages in the management activities of production and operation in the name of the unit externally.
3. The labor contract is a paid contract between both parties. In the labor contract, the laborer must provide labor for the employer, and the employer must pay remuneration for the laborer, so it is a two-service paid contract.
4. The main terms of the labor contract are legal. In order to stabilize social order and protect the legitimate rights and interests of workers, countries have stipulated the main terms of labor contracts, such as working hours, labor protection conditions, minimum wages and holidays, and the parties concerned must abide by them.
5, the labor contract under certain conditions, often involves the material interests of the third party [7]. This feature is determined by the characteristics of labor reproduction itself. The content of the labor contract is not limited to the provisions of the rights and obligations of the parties, but also involves the material assistance rights enjoyed by the workers’ relatives under certain conditions, such as children’s employment, housing, maternity and work-related injuries, and material assistance when they die [8].
Second, the labor contract and its legal characteristics
In practice, people usually call the process of providing live labor service labor service. There are many contracts related to labor services, besides employment, there are contracting, publishing, transportation, entrustment, brokerage, storage and warehousing [9]. The concept of labor contract is very broad, and there is no clear and unified legal definition at present. The author thinks: labor contract has broad sense and narrow sense. A labor contract in a broad sense refers to all agreements related to the provision of live labor services (i.e. labor services). It belongs to the category of civil law adjustment, and the object of the contract is labor service. Some scholars define a labor contract as: "A labor contract refers to an agreement between legal persons, citizens, and legal persons and citizens on providing labor services." The author thinks that labor contract: "it is an agreement between the two parties on the creditor’s rights and debts formed in the process of providing live labor for the other party [10]". In a narrow sense, a labor contract only refers to an employment contract, that is, a contract in which both parties agree that one party will provide labor services to the other party and the other party will pay remuneration during a certain or uncertain period [11].
A labor service contract in a broad sense covers a lot of contents, so long as it is a labor service contract, it can be included in this kind of contract. According to the different emphasis of labor services provided by one party to the other, labor contracts in a broad sense can be divided into two categories: one is the contract whose object is labor services, but which focuses on the labor behavior itself. Some scholars summarize the contents of this kind of labor contract as follows: entrustment, discipline, intermediation, storage, transportation (transportation), tourism, performance, employment, bank transfer settlement contract and labor contract [12]. The other is the contract whose object is labor service, but which focuses on the result of labor service behavior, that is, the contract to complete the work delivery results; The content of this kind of contract is mainly the contract, as well as the special form of construction project contract [13]. Generally speaking, labor service contracts mainly follow the traditional principles of civil law and are adjusted by civil law, and most of them have become famous contracts. The specific rights and obligations of both parties are clearly stipulated in the contracts, such as discipline, intermediary, custody, transportation, contracting, construction project contracting and so on.
The narrow sense of labor contract only refers to the general employment contract, which is still regulated by civil law in most countries; As for another special case of employment contract-labor contract, because of its "legal structure with personal thoughts as the background, it has become increasingly unsuitable to standardize the reality of labor contract in modern society [14]", especially since the end of the 19th century and the beginning of the 20th century, it has entered the era of labor contract with social progress. "The free negotiation of contract is restricted, which more embodies government intervention, and it only eliminates the non-substantive equality that is difficult to achieve in the real society, making economic power. Therefore, the labor contract law with social significance [16] is produced. In this way, today’s labor contract is no longer regulated by civil law, but by labor law [17].
To sum up, the labor contract has the following characteristics:
1, the universality and equality of the subject. The main body of labor service contract can be signed between legal persons and organizations, or between citizens and legal person organizations. Generally speaking, it is not a special limitation and has universality. At the same time, the two sides fully abide by market rules and have equal status. When signing a contract, both parties shall follow the principle of fairness in the Contract Law.
2. Particularity of the subject matter of the contract. The object of a labor service contract is the living labor provided by one party to the other party, that is, labor service, which is an act. Labor contract is a contract with labor as the payment target, but the target of each specific labor contract requires different emphasis on labor behavior, or focuses on labor behavior itself, that is, the process of labor behavior, such as transportation contract; Or focus on the results of labor behavior, that is, the results of labor completed by providing labor services, such as contracting contracts.
3. Arbitrariness of content. Unless there are mandatory provisions in the law, both parties to the contract can completely decide the content and corresponding terms of the contract with their own free will, and decide on the provision and use of labor services and the beneficiaries. The content can belong to the needs of a certain profession in production and work, and can also belong to family life. When signing a contract, both parties shall follow the voluntary principle of the Contract Law.
4. The contract is a bilateral contract and a mandatory contract. In a labor service contract, one party must provide labor services for the other party, and the other party must pay the corresponding labor remuneration for the party providing labor services, so the labor service contract is a two-service paid contract. Most labor service contracts are non-essential contracts, unless otherwise specified by law.
Three, the relationship between labor contract and labor contract, employment contract and contract.
1, the difference between labor contract and labor contract
(1) Different subject qualifications. The main body of a labor contract can only be a legal person or an organization, that is, an employer, and the other party must be an individual worker. The main body of a labor contract cannot be both natural persons. Both parties to a labor service contract can be legal persons, organizations and citizens at the same time, or citizens can be legal persons and organizations.
(2) The nature of the subject and its relationship are different. There is not only a property relationship, that is, an economic relationship, but also a personal relationship, that is, an administrative subordination relationship. In addition to providing labor, workers must accept the management of the employer, obey its arrangements, abide by its rules and regulations, and become internal employees of the employer. However, there is only property relationship between the two parties of the labor contract, that is, economic relationship, and there is no attribute between them. There is no administrative affiliation. Workers provide labor services and employers pay labor remuneration, which are independent and equal.
(3) The treatment of subjects is different. Workers in labor relations receive not only wages, but also insurance and welfare benefits. In labour relation, natural persons generally only get paid for their work.
(4) The principles of determining remuneration are different. In the labor contract, the employer pays labor remuneration according to the quantity and quality of labor and the relevant regulations of the state, which embodies the principle of distribution according to work, while the labor price in the labor contract is paid according to the market principle of equal value and compensation, which is completely determined by both parties through consultation.
(5) Employers’ obligations are different: the performance of labor contracts runs through the intervention of the state. In order to protect workers, the Labor Law imposes many obligations on employers. For example, they must pay old-age insurance, medical insurance, unemployment insurance, work injury insurance and maternity insurance for workers, and the wages paid by employers must not be lower than the local minimum wage set by the government. These statutory obligations must not be changed through consultation. Employers of labor contracts generally do not have the above obligations. Of course, both parties may agree on the above contents, or there may be no such contents.
(6) The arbitrariness of the contract content is different. The main terms of a labor contract are clearly stipulated by law, and cannot be negotiated by the parties. For example, the employer should provide workers with working conditions and labor protection articles that meet the requirements of the state. However, the labor contract is freely negotiated by both parties to the contract without violating the mandatory law, which is very arbitrary.
(7) Different legal adjustments. Labor contracts are mainly regulated by civil law and economic law, while labor laws are regulated by labor law and labor contract law in social law.
(8) Different degrees of state intervention: the terms and contents of labor contracts are often stipulated by the state in mandatory legal norms. For example, the employer’s compulsory obligations and the termination of the contract, unless both parties reach an agreement through consultation, the employer must meet the conditions stipulated in the Labor Law. The labor service contract has a low degree of state intervention. Except for violating the mandatory provisions of national laws and regulations, the agreement on the content of the contract mainly depends on the autonomy of the parties, which is determined by the parties through free consultation.
(9) Legal liabilities of the contract: The liabilities arising from the non-performance and illegal performance of the labor contract are not only civil liabilities, but also administrative liabilities. For example, if the wages paid by the employer to the workers are lower than the local minimum wage, the labor administrative department shall make up the wages below the standard within a time limit, and if it refuses to pay, the labor administrative department may also give the employer a warning and other administrative sanctions. The responsibilities arising from labor contracts are only civil responsibilities-breach of contract and tort liability, and there is no administrative responsibility.
(10) Disputes are handled in different ways. After a labor contract dispute occurs, it should be submitted to the labor arbitration committee of the labor organ for arbitration first, and those who refuse to accept it can only bring a lawsuit in the people’s court within the statutory period. Labor arbitration is the pre-procedure; However, disputes over labor contracts can be litigated or settled through consultation between both parties.
2, the difference between labor contract and employment contract.
The labor contract developed from the employment contract, which is not much different in essence, but very similar. Labor relations are the social labor relations between workers and their units in the process of realizing social labor, and the objects of standardization are the proposal and acceptance of labor services. However, under the circumstances that China’s actual population is large and employment cannot be fully realized, the norms, adjustments and legal consequences of the two contracts are completely different. The main difference is [18]:
(1) The history of the two is different. The employment contract has a long history. Since the existence of slave social exploitation, there has been an employment relationship in human labor relations, and with the need of labor exchange, the employment contract has gradually emerged. The labor contract was developed on the basis of the employment contract in the 17th century when the capitalist commodity economy was relatively developed.
(2) Different in nature. An employment contract is a contract in which the employee provides services for the employer; A labor contract is a labor contract that determines the labor relationship between the employer and the employee.
(3) the purpose is different. The purpose of an employment contract is to supply labor services, which is centered on the employer’s "ownership" of the laborer and the "domination" of the laborer, while the labor contract is centered on the laborer who provides labor services [19], aiming at the laborer becoming an internal member of the employer.
(4) The degree of state intervention is different. The employment contract is more about the mutual agreement of the parties and the result of the parties’ consensus, and the degree of state intervention is less; However, the labor contract more embodies the state’s intervention in the contract between the parties, and makes special provisions on the procedures for concluding the contract, the obligations of the employer, working conditions, labor protection, minimum wage, termination of the contract, etc., mainly focusing on the special protection of workers.
(5) The subject and its relationship are different. In a labor contract, one party is a laborer and the other party is an employer, both of which belong to legal persons or social organizations, and their scope of application is limited to the employment of the unit. After becoming an internal member of the employer, the employee must undertake certain types of work or duties, and there is a "special subordinate relationship" between the employee and the employer, and the employee’s work must be "subordinate to the employer [20]". The employment contract can be that one party is a citizen and the other party is a unit, or both parties are citizens, and the employee does not become a member of the employer. Employment provides a wide range of services, and all services adjusted by law can be applied to employment contracts.
(6) Different legal adjustments. The labor contract is regulated by the labor law and the labor contract law; Employment contract should belong to civil law adjustment. At present, China’s contract law has not made clear provisions on it, and it is governed by the general principles of civil law and contract law.
(7) The procedures for handling disputes are different. When there is a dispute over a labor contract, the judicial organ can only intervene after the arbitration pre-procedure. The dispute should be handled in accordance with the provisions of the Labor Law and the Labor Contract Law, and the arbitration institution or court can judge the employer to continue to perform the labor contract. Similarly, the termination of the contract should follow certain legal procedures. When there is a dispute over the employment contract, the court can directly accept it and apply the provisions of the civil law; There is no special procedure for dissolution, and both parties can dissolve the employment relationship at any time.
3, the difference between labor contract and contract.
A contract is a contract in which the contractor completes the work, delivers the work and delivers the work results according to the requirements of the customizer, and the customizer pays the remuneration [21].
Labor contract and contract are both contracts aimed at providing services, but there are essential differences [22]:
(1) the purpose of a labor contract is to provide labor services, and its object lies in the labor itself; Contract is the completion of a certain work, although it involves labor, but its purpose is not labor itself, but labor results, and labor itself is only a means to obtain its results.
(2) in the labor contract, regardless of whether the labor has any results, you can get paid; If the contract is fruitless, you can’t get paid.
(3) In the labor contract, the laborer needs to obey the arrangement of the other party when providing labor services, and his work has some subordination; In the contract, the contractor’s work is independent.
(4) In the labor contract, when the laborer infringes upon the rights of others due to the performance of his duties, his responsibility is usually borne by the unit first. If the laborer is at fault, he will bear the responsibility according to the size of his fault; However, the contractor’s liability for damages caused by tort in the process of contracting is usually borne by the direct contractor.
(5) The labor contract reflects the contractual relationship between the employer and the employee, which takes labor remuneration and labor welfare as the core; The contract reflects the contractual relationship between two equal civil subjects, one of which provides the other with work results.
4, the difference between the employment contract and the contract.
The employment contract and the contracting contract both take labor as the payment object [23]. But there are obvious differences between them, mainly in the following aspects:
(1) Pay attention to different services. In the employment contract, the employee only works for a certain purpose, that is, taking the labor service orally for a certain period of time, focusing on the process of labor service payment; The contract is the result that the contractor needs to pay for certain services, and the result of service, that is, the transfer of ownership of work results, is the main content of the contract, and there is an inseparable relationship between labor payment and work results, focusing on labor payment.
(2) When signing the contract, both parties have different starting points. In employment contracts, employers generally choose employees based on whether their labor skills are suitable for their own requirements, and employees conclude employment contracts based on whether their labor remuneration meets their own requirements; In the contract, the ordering party selects the contractor on the basis of the contractor’s skills, production equipment or production scale, reputation and other conditions, while the contractor concludes the contract on the basis of whether his own skills or existing conditions can complete the work and obtain benefits.
(3) in the employment contract, the employee’s labor payment is a kind of "subordinate labor", including economic and personality subordination. The employee has no independent choice on how to arrange the work, and the employer can interfere with the employee’s work at any time; The contractor’s labor service payment is "independent labor", and the ordering party and the contractor have equal status from beginning to end. The contractor has complete autonomy in how to arrange the work, and the ordering party has no right to interfere.
(4) The determination of remuneration is different from payment. In the employment relationship, the determination of remuneration is based on the price of market labor combined with the corresponding industry standards. Once the remuneration is determined, employees can generally obtain a stable amount of remuneration for a long time, and there is no risk of loss; The labor remuneration of the contract is determined based on its own skills or production scale, the price of raw materials, etc. Moreover, the contractor has to bear the risk of potential losses. At the same time, generally speaking, the employee’s salary under an employment contract is hourly wage, and the contractor’s remuneration is piecework remuneration. The employment contract is based on the principle of the existence of a certain period of time, while the contract is based on the one-time payment.
(5) Whether contractual obligations can be transferred is different. The subject matter of liabilities in the principle of employment contract is the type contract; Employees under employment contracts can transfer their labor obligations to others; The contract is a specific labor service, and the contractor may not entrust the contracted work to a third person for completion.
(6) Different risk burdens. In the employment contract, the employer shall be responsible for the risks arising from the employee’s completion of the work, such as the loss caused by the employee’s injury, the damage to others, and the work that does not meet the quality requirements. In the contract of contract, the contractor shall bear the risk liability, unless it is caused by the employee’s intention or gross negligence, and the ordering party is not involved.
(7) Whether you can enjoy the right of disposition is different. Although the employer of an employment contract bears the risk of loss for his employees’ work mistakes, he enjoys certain punishment rights for employees, such as deducting certain bonuses, wages, warnings, admonitions, etc. When employees are punished, they generally cannot be relieved through judicial procedures; The ordering party of the contract has no right to dispose of the contractor, if the quality is unqualified. In case of delayed delivery, the ordering party can only investigate the contractor’s liability for breach of contract according to the provisions of the contract. If no agreement can be reached, it can be settled through arbitration or litigation.
IV. Concluding remarks
Through the analysis of the essential characteristics of labor contract and labor contract, we basically have a more comprehensive understanding of them, especially through the comparison between labor contract and labor contract, employment contract and contract, and distinguish the differences between labor contract and labor contract more clearly, which is of great practical significance for the correct application of law in handling disputes in the judiciary.
Notes:
[1] Huang Yueqin: "New Theory of Labor Law", China University of Political Science and Law Press, April 2003, p. 133.
[2] Dictionary of Law: edited by Institute of Law, Chinese Academy of Social Sciences, Law Press, December 2002, p. 840.
[3] Guo Jie waiting: "Labor Law", China University of Political Science and Law Press, April 1998, p. 114.
[4] Li Jingsen, Jia Junling: "Labor Law", Peking University Publishing House, January 2002 edition, p. 68.
[5] edited by Tang Shulao and Si Longsheng: A Complete Book of Labor Law Practice, China Workers Publishing House, 1994, p. 342.
[6] Same as [3].
[7] edited by Tang Shulao and Si Longsheng: A Complete Book of Labor Law Practice, China Workers Publishing House, 1994, p. 344.
[8] Guo Jie et al. Labor Law: China University of Political Science and Law Press, April 1998, p. 115.
[9] Peng Wanlin: Civil Law, China University of Political Science and Law Press, July 1996, p. 13.
[10]’ Dictionary of Law’: Institute of Law, Chinese Academy of Social Sciences, Law Press, December 2002, p. 847.
[11] Zhang Junhao: Civil Law, China University of Political Science and Law Press, March 1998, p. 753.
[12] Kou Zhixin: Civil Law, Shaanxi People’s Publishing House, 1998, p. 791-844.
[13] Same as [12].
[14] Huang yueqin: "new theory of labor law", China university of political science and law press, April 2003 edition, p. 86.
[15] Same as [11].
[16] Same as [1].
[17] Shi Shangkuan: On Debt Law, China University of Political Science and Law Press, 2000, p. 294.
[18] Kou Zhixin: "Civil Law", Shaanxi People’s Publishing House, 1998, p. 833.
[19] Huang yueqin: "new theory of labor law", China university of political science and law press, April 2003 edition, p. 33.
[20] Same as 1.
[21] Li Guoguang: Interpretation and Application of Contract Law (Volume II), Xinhua Publishing House, 1999, p. 1195.
[22] Li Guoguang: Interpretation and Application of Contract Law (Volume II), Xinhua Publishing House, 1999, pp. 1197-1198.
[23] with [1]
Author: People’s Court of Shicheng County, Jiangxi Province