The state of performing incomplete or poor quality work for pay. For example, suppose a video editor is hired to produce five 10-minute videos. If the client receives four two-minute videos, the video editor may be non-compliant with regard to the contract. Non-compliance may be actionable.
Definition. An employee who works under contract for an employer. A contract employee is hired for a specific job at a specific rate of pay. A contract employee does not become a regular addition to the staff and is not considered a permanent employee.
The term âcontract of serviceâ is, however, referred to in the employment and tax legislation. A person who works under a contract of service is: 1  an âemployeeâ for payroll purposes, and. 2  an âemployeeâ for employment rights purposes, and. 3  a âworkerâ for other employment rights purposes.he term: â 1 contract of serviceâ relates to a person in employment (as in the case of a domestic servant who is described as being âin serviceâ). â 2 contract for servicesâ relates to a person who is self-employed and who provides services to clients.