The purpose of a contract is always to establish the agreement between parties and state their rights and duties in accordance with this agreement. In the business world, there are different types of contracts depending on the duration, the roles, etc.
Umbrella companies offer employment for contractors and freelancers as well as absolute compliance and support with administrative and legal tasks. In an umbrella scheme, there is a tripartite relationship between the umbrella, the client and the consultant. All these relations are stated in different contracts to guarantee an efficient development. The types of contract involved in are:
Sales contract with client
The sales contract is signed between the company that requires services (client) and ABC Portage. It is basically a contract for service that states an agreement to the performance of an express task. Contracts are important since they place legal obligations on contracting parties, such as any specific requirements for the service and the price to be paid. Thus, it becomes a written guarantee.
Contracts should specify the parties involved, the service to be performed and a standard of completion. With a project contract, the company transfers the contractual responsibility of the assignment.
Contractual agreement with employee
The contractual agreement defines the terms of the relationship between an employer and an employee. In the case of umbrellas, it confirms the partnership between the portage and the consultant. It means that, by signing the agreement, you become an employee of ABC Portage and access the benefits of social coverage.
A typical contractual agreement states the job title and duties along with the start date of employment, the duration of contract, whether it is part time or full time and tailored solutions. As our employee, you will have all the statutory rights any other employee has since ABC Portage is held responsible before French legal tax and administrative authorities.
At the other side of the coin, ABC Portage will assume management and administration, which means it follows up the payment of the employee, fiscal and indirect expenses.
Employment contract with employee
This document offers security for the employee status because it addresses all legal obligations related to legislation for workers in France.
There are different types of employment contracts, including:
- Short-term contract
- Long-term contract
The contract will specify the duration of the work order, the duties and expectations, as well as other information customized to specific requirements of the clients. The freelancer adhered to an umbrella company is often employed under a special form of employment contract where the relationship does not end when a certain short-term assignment finishes. For example, if a person works for a month, later has a break of a week and then receives another project, the employment contract remains through the pause and the new project received, meaning they are still an ABC Portage’s employee even if the task with the client ended.
The employment contract is a guarantee for you, as an umbrella consultant, that you have access to the French social coverage, retirement, pension and other benefits.