The Supreme Court of the Russian Federation has identified the differences between a service contract and an employment contract.

Under a service contract, the contractor:

• maintains the position of an independent economic entity;
• works at his or her own risk.

Under an employment contract, the employee:

• is obliged to perform work required to fulfill a particular employment role;
• is included in the company’s staff;
• complies with the established working regime;
• works under the control and guidance of the employer;
• does not bear risks connected with performance of the employee’s work.

In the case in question, the plaintiff filed a claim to the court for recognition of a service contract as an employment contract. The Supreme Court of the Russian Federation determined that the contract between the plaintiff and the company contained provisions that are typical for employment contracts (e.g. there was a specified workplace and an obligation to comply with internal labour regulations).

The Supreme Court of the Russian Federation pointed out in its Resolution (Resolution of the Supreme Court of the Russian Federation dated January 14, 2019 No. 5-KG18-259) that the crucial issue is to clarify whether there were, in practice, any features of employment relations between the parties, rather than how relations between the parties were formalised.