Distinguishing Entrepreneurship (Contracting) Contracts from Employment Contracts in the Iranian Legal System: Necessities and Standards

One of the outcomes of establishing an independent set of regulations to regulate labor relations compared to the provisions of the Civil Code (in the chapter on the hiring of persons) is the necessity of distinguishing contracts subject to labor law from other contracts related to human work, particularly contracting contracts (boycotts). Given the numerous similarities between these two types of contracts, on the one hand, and the fundamental differences in the legal system governing each, on the other, it is necessary to clarify the importance of this matter and to analyze the criteria for distinguishing these contracts in detail.
This study, relying on a descriptive and analytical approach, seeks to answer the following specific question: What are the criteria for distinguishing contracting contracts from employment contracts? According to the research findings, no single criterion can be presented for discrimination in this regard, while acknowledging that the criterion of "subordination" is the primary factor for distinguishing between these two types of contracts. Other relevant criteria—such as the nature of the operations subject to the contract, the method of payment of wages, the economic situation and level of specialization of the work performer, the duration of the work, and, in particular, contractual stipulations—cannot alone constitute a decisive basis for discrimination in this area. Therefore, examining the circumstances and conditions of each individual case, and comparing it to employment relationships subject to the Labor Law in terms of the availability of the legal elements to prove the relationship subject to the aforementioned law, can assist executors and judges in this context. The silence of the legislator and regulator, the absence of clear judicial precedents, and the weakness of legal studies in this field have all created the need to research this issue and find solutions for it, taking into account relevant legal principles and standards. Among the factors that distinguish an employment contract from a contracting contract are: the implementation of the operations subject to the contract is subject to an administrative system; the presence of the person (worker) in the workplace under the employer's regulatory obligations; the performance of similar work by persons with employment contracts or other types of government employment; the continuity of the implementation of the operations subject to the contract, even with repeated renewal or the conclusion of new contracts; the regular payment of monthly wages; the provision of materials and work tools by the employer; and the payment of additional payments such as overtime and work assignments.