Work Agreement — complete guide 2025

A work agreement (also called a service agreement or contract for work) is the fundamental contract type for anyone commissioning work or performing it for remuneration. Unlike an employment contract, no employment relationship is created — the contractor remains an independent professional (sole trader or company) responsible for their own taxes, social contributions and the quality of the result.

The subject of the contract is always a specific result (the work), not the act of working itself. The client pays for a finished website, completed accounting report, written marketing copy or a built extension — not for hours worked. This distinction has significant legal consequences in disputes over price, deadlines or ownership of deliverables.

In Slovakia, work agreements are most commonly concluded between businesses (B2B) under the Commercial Code, but can also be concluded by a non-business individual under the Civil Code. Each statute brings slightly different rules — which is why correctly identifying the legal regime before signing matters.

Work agreements between businesses are governed by § 536 – 565 of the Commercial Code (Act No. 513/1991 Coll.). The key provision, § 536(1), states that the contractor undertakes to carry out a specific work and the client undertakes to pay the agreed price. Without a defined subject matter and price (or method of determining it), no valid contract is formed.

For consumer contracts (B2C), § 631 – 643 of the Civil Code (Act No. 40/1964 Coll.) apply. Consumer law adds further protections — for instance the obligation to inform about price and deadline upfront.

Electronic signing of a work agreement is fully valid under eIDAS Regulation (No. 910/2014/EU) and Slovak Act No. 272/2016 Coll. on trust services. The contract can be signed with a simple electronic signature (e.g. OTP verification in zipzipdoc); the audit trail provides evidence of content and signing time.

Key legal provisions in the Commercial Code:

• § 537 — the contractor performs the work at their own risk
• § 548 — price is due on delivery of the work, unless otherwise agreed
• § 560 — warranty period for hidden defects
• § 563 — client's right to withdraw in case of serious delay

A work agreement is not a single template — several variants exist based on pricing model and the nature of the work:

1. Fixed price — The contractor commits to delivering a precisely defined scope for an agreed lump sum. Ideal for well-scoped projects (website, logo, final report). The contractor bears cost-overrun risk.

2. Time and materials (T&M) — Price is based on actual hours (or days) worked and materials consumed. Suitable for long-term or hard-to-define projects (software development, consulting). The client bears cost risk.

3. Combined model — A fixed price for the base scope, with an hourly rate for extensions. A compromise for most agency projects.

4. Subcontractor work agreement — A general contractor passes part of the order to a subcontractor. Responsibility to the client and confidentiality of commercial terms must be addressed.

5. Author's work agreement — The work is a creative output (software, design, text). Slovak Copyright Act No. 185/2015 Coll. applies alongside the Commercial Code, which affects IP transfer rules.

The law requires a minimum; practice recommends more. The table below divides clauses into mandatory (without which the contract may be invalid or indeterminate) and recommended (which protect your interests):

Creating a valid work agreement follows six steps. Each is important — skipping even one can lead to disputes or insufficient protection.

1. Define the scope of work — Describe precisely what the result should be: scope, deliverables, formats, number of revisions. The more precise the description, the less room for later misunderstandings. For software projects, attach a detailed specification as an appendix.
2. Set the pricing structure — Choose the model (fixed price, T&M or a combination), the deposit amount, payment milestones and due dates. Include a late-payment interest clause (0.05 % of the outstanding amount per day).
3. Address ownership of deliverables — Explicitly state when and under what conditions ownership of the work transfers to the client. For software and content, also address licensing rights before ownership transfer.
4. Set the acceptance procedure — Define the review period (e.g. 10 business days), acceptance and rejection conditions, and the claims process. Without this clause, the client can delay acceptance indefinitely.
5. Agree on confidentiality and non-compete — If you will have access to sensitive business information, include an NDA clause. A non-compete clause prevents the contractor from working for direct competitors during the engagement.
6. Sign electronically — Use a platform with a built-in audit trail (e.g. zipzipdoc). Both parties receive a signed PDF with a timestamp and identity-verification record — admissible evidence in any dispute.

Experience from thousands of work agreements reveals several recurring mistakes that lead to disputes or financial loss:

• Vague scope of work — A description like "build a website" without specifying the number of pages, functionality and responsiveness leaves room for conflict. Solution: attach a detailed specification as part of the contract.
• Missing acceptance procedure — Without a defined delivery process, the client can delay acceptance, blocking the final payment. Solution: define a review period (10 days) with a silent-approval provision (if the client does not respond within the period, the work is deemed accepted).
• Unclear IP clauses — If the contract does not state who owns the deliverable, the law resolves this in the client's favour only after full payment. Until then, the situation can be legally uncertain. Solution: explicit IP transfer conditional on full payment.
• Disproportionate penalties — A penalty of 1 % per day of the total price is disproportionate and a court may reduce it (§ 301 Commercial Code). Solution: 0.05 % per day, capped at 10–20 % of the price.
• Missing deadline — Without a specific delivery date, "reasonable time" applies, which is vague. Solution: a specific date or a milestone schedule.
• Verbal agreement on scope changes — Every scope change should be recorded in writing as an amendment. Solution: a "change order" clause in the original contract.