A contract of agency obliges the performance of specific tasks in good faith, whereas a contract for the performance of specific work obliges the achievement of a specific, verifiable result. This distinction explains everything else: a contract of agency typically requires payment of social security contributions and a minimum hourly rate, while a contract for specific work typically does not require payment of contributions, but the contractor is liable for any defects resulting from their work. Both contracts are civil law contracts, not employment contracts.
To sum it up
- Item: order – performance of work or services (due diligence agreement); work – specific result (agreement on result).
- ZUS: An employment contract typically provides for contributions to a pension fund, disability insurance fund, accident insurance, and health insurance; when concluding a contract for the performance of a specific job, contributions are usually not required.
- Reward: A minimum hourly rate is set for completing tasks, but not for specific types of work.
- Responsibility: The contractor is responsible for improper care, and the person performing the work is responsible for defects in the result (warranty).
The difference between a contract of agency and a contract for the performance of specific work.
Agency agreement Regulated by Article 734 of the Civil Code, the person accepting an order undertakes to perform a specific legal action for the person who gave the order. In practice, contracts are most often concluded for the provision of services, to which—in accordance with Article 750 of the Civil Code—the provisions on orders apply. The contractor is obligated to act in good faith but does not guarantee a specific result. Typical examples include working in a store or café, distributing leaflets, providing care services, conducting classes, or providing services to clients.
Contract for the execution of custom work is regulated by Article 627 of the Civil Code: the person accepting the order undertakes to perform the specified work, and the person ordering the order undertakes to pay remuneration. The work must be a specific, individual and verifiable result – tangible (e.g., custom-made furniture, a painting) or intangible (e.g., graphic design, text translation, a computer program). If it is impossible to precisely define what exactly needs to be created and how to verify its perfection, a contract for custom work is inappropriate.
Simple test: if you pay for time and diligence ("You manage our social media profile for a month"), this is a commission. If you pay for finished product ("You will develop a logo in three versions"), this is a commission.
The contract for work, as a rule, provides for compulsory insurance : pension, disability, accident, and health insurance; health insurance is voluntary. An exception is students under 26, who are not covered by insurance premiums. Concurrence of insurance rights is also important, for example, if the contractor also has an employment contract.
Contributions to ZUS (Social Insurance Agency) – neither social nor medical – are paid under contracts for the performance of specific work. . An exception is when the work is performed for one's own employer: in this case, the income is considered income from an employment contract, and contributions must be paid. Starting in 2021, the party to the contract (the company or individual acting as the payer) is required to report each contract for specific work to ZUS (the Social Insurance Institution) using the form RUD within seven days of its conclusion.
In terms of taxation, both agreements are similar: income is taxed according to the applicable tax bracket, and the client receives an advance payment against income tax. The standard deduction is 20%, and for copyright transfers, it can reach 50% (with an annual limit). The difference applies to young people: the income tax exemption for those under 26 applies to income from agency agreements, but not from contracts for specific work.
Remuneration, liability and termination of the contract
For agency agreements (and agreements for the provision of services) the following applies: minimum hourly rate , established annually by the government, and the client must confirm the number of hours worked. For contracts for specific work, no minimum rate applies—the remuneration depends on the contract, often a lump sum payment upon completion of the work.
The contractor is responsible for lack of caution . The contractor is responsible for result : If the work is performed poorly, the customer can take advantage of the warranty (Article 638 of the Civil Code refers to the rules of sales), for example, by demanding corrections or a reduction in payment.
The terms of termination of the contract also vary. Either party may terminate the contract at any time. (Article 746 of the Civil Code), although termination without good cause may entail an obligation to pay damages. In the case of a contract for specific work, the client may terminate the contract before completion of the work, but must pay the agreed-upon remuneration less any savings the contractor has made (Article 644 of the Civil Code).
Comparison table: contract for work and contract for specific performance of works.
| Characteristic | Agency agreement | Contract for the performance of specific work |
|---|---|---|
| Legal basis | Article 734 and subsequent articles of the Civil Code (and Article 750 of the Civil Code) | Article 627 and subsequent articles of the Civil Code |
| Element | Activities, services – good faith actions | A concrete, verifiable result |
| Contributions to the Social Insurance Institute (ZUS) | As a rule, yes (exceptions, for example, for students under 26 years of age). | Usually no (exception: working for your own employer). |
| Subordinate to ZUS | Notification to the insurance company of the occurrence of an obligation. | The RUD form must be completed within 7 days. |
| Minimum hourly rate | Yes | NO |
| Responsibility | To conduct a comprehensive audit | In case of defects in work (warranty) |
| End | Termination of the contract at any time | The customer's refusal to perform work before its completion. |
| Benefits for young people under the PIT program | Includes | Does not include |
Which contract should I choose?
- Agency agreement Suitable for recurring activities and services provided over a period of time: one-time work, customer service, tutoring, cleaning, caregiving.
- Contract for the performance of specific work Suitable for one-off tasks with a specific result: design, text, translation, or custom-made products.
- The title of the contract does not determine its nature. The content and method of performance are important. If the "work" actually constitutes a recurring service, the Social Insurance Institution (ZUS) may consider the contract an assignment and collect outstanding contributions. If the work is performed according to the client's instructions, at the location and time specified by the client, this may actually constitute an employment relationship.
- For the contractor A contract typically entails a lower net income, but it also includes pension contributions and health insurance. Starting in 2026, contract periods are also included in the employee's length of service, which determines, among other things, vacation time and seniority benefits.
The rules governing contributions under civil-law contracts are subject to scheduled changes, and rates and limits change annually. Before signing a contract, it's recommended to check the current rules on the websites of the Social Insurance Institution (ZUS) and the Ministry of Finance, and if in doubt, consult an accountant or lawyer.
Frequently Asked Questions (FAQ)
What is more profitable: a contract of agency or a contract for the performance of a specific job?
A job-specific contract typically offers a higher net salary because it is exempt from social security contributions. However, a job-specific contract also includes pension benefits, disability, accident, and health insurance, as well as a minimum hourly wage. However, the choice should be based on the nature of the work, not just cost.
Are payments to ZUS (Social Insurance Agency) required under a contract for specific work?
As a rule, contributions to social security or health insurance are not required. An exception is work performed for one's own employer. However, the conclusion of the contract must be reported to the Social Insurance Institution (ZUS) using form RUD within seven days of its conclusion.
Does the student pay fees under the legal services agreement?
Students under 26 are not covered by the surety agreement, so contributions are not paid. After reaching 26, the surety agreement becomes mandatory for contribution payments.
Is the duration of the appointment contract counted as length of service?
From 2026 onward, yes. Periods of work performed under mandate contracts are included in length of service and are confirmed, in particular, by certificates from the Social Insurance Institution (ZUS). Contracts for the performance of specific work are not mentioned in these provisions.
Can a commission agreement be terminated without prior notice?
Yes. According to Article 746 of the Civil Code, either party may terminate the contract at any time. However, if they do so without good cause, they may be obligated to compensate the other party for damages. The parties may also agree on a notice period.
See also
- What is the difference between a representative appointment agreement and an employment contract?
- What is the difference between a deposit and a down payment?
- What is the difference between renting and leasing?
- What is the difference between renting and leasing?