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an employment contract is an employer-employee relationship where somebody hires somebody they control their work they control the place they perform the work how they perform the work with what tools or mechanisms a service agreement is much different thats typically an independent contractor agreement where the person does not control every aspect of the relationship there is a defined parameters for example air conditioning service where an outside company will come in and take care of certain issues with respect to the air conditioning but theyre not the employee they have other customers they have other locations they work at but theres a defined limit as to what theyre supposed to be do and then they leave it within the service providers discretion as to how to obtain those services or to make sure those services are done properly you