A civil-law (GPH) contract and an employment contract: the difference and what to look at
Signs of substitution, risks for the parties, and wording worth checking before you sign
A civil-law contract (GPH) and an employment contract solve different problems. Confusion in the text, or “disguising” an employment relationship as GPH, creates risks for both the contractor and the customer. Here is how they differ, and what to check in the wording.
Already have a GPH or services contract? Check it for risks:
The key difference
| Point | Employment | GPH |
|---|---|---|
| Subject matter | A job function, the process | A result of work / services |
| Subordination | Internal workplace rules | The contractor works independently |
| Pay | A salary on a schedule | For a result / stages against a certificate |
| Leave / sick pay | Guarantees under the Labor Code of the Russian Federation | Usually none (unless the contract provides them) |
Signs that a GPH contract “looks like” employment
- A fixed schedule, a workplace, and subordination to a manager
- Pay “twice a month” with no link to a result
- An open-ended character with no specific scope of work
- Penalties for “absences” and lateness
- A duty to do any work the customer directs
For the customer, wording like this raises the risk that the contract will be reclassified. For the contractor, it is the risk of having no employment guarantees while in fact “working as hired staff.”
What to check in a GPH contract
- Subject matter: a specific result, not “performing duties”
- Term: a start and end date, or stages
- Price and certificates: when payment is made, and what counts as delivery of the result
- Revisions: how many iterations are included in the price
- Liability: whether penalties are proportionate, and mutual
- Termination: how to leave the contract, and what happens to payment
- Rights in the result: who owns the exclusive rights
When each format fits better
- Employment — an ongoing function on staff, a schedule, and subordination
- GPH / services / work contract — a project, a scope, a result, and an independent contractor
- Self-employed — a separate scenario; see how to draft a contract with a self-employed person
Related topics: checking a work contract, a contract for a freelancer.
Check a GPH contract before you sign
DocumentCHEK helps find a vague subject matter, one-sided penalties, and disputed payment terms.