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I'm applying for an open vacancy and the HR is asking me:

What type of cooperation are you interested in: personal contract, business contract, full-time contract?

I spent some time searching on internet but it's not easy for me to grasp clearly the difference.

  • In what country? – George White Jun 18 at 17:18
  • You should ask your HR contact for clarification as their definitions of these terms will be specific to them. No definition you can find anywhere will necessarily apply to this specific situation. – Mowzer Jun 18 at 17:36
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What is the difference between personal contract, business contract and full-time contract?

There is no formal definition, but it most likely refers to whether you intend to be hired as independent contractor, as a corp-2-corp, or as employee in the company's payroll.

Each option has its tax, administrative, and legal implications. Some of these are:

  • whether your compensation will be from payroll vs. invoicing the company;
  • an employee might be statutorily entitled to benefits that outside contractors and companies are not;
  • servicing them in a capacity of contractor or company might make it easier for you to take side projects;
  • under some of these three alternatives the company might be more flexible when negotiating raises;
  • you might be hired on a project basis (that is, if you are not in their payroll);
  • in case of liabilities or when one of the parties commits a tort or breaches the contract, the "administrative remedies" could be different.

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