12.02.2025
CAN I BE AN EMPLOYEE AND AN EMPLOYER IN ONE COMPANY AT THE SAME TIME
Consideration of the possibility for a business owner to appoint himself to a certain position is often posed as a matter of practice. For example, imagine that the owner of a small consulting firm is considering hiring a consultant as part of their team. This would enable him to benefit from various social security benefits and rights that are linked to the employment contract.
This scenario is particularly important because it affects issues of social security and worker's rights. Can a business owner use this strategy to improve their financial and social situation while providing additional protection for themselves and their business?
The employment contract is a bilateral contract. It is concluded between parties, one of whom has the status of employer, and the other - worker or employee. The Labor Code defines who is an employer. Counter rights and obligations arise for each of the parties to the employment relationship.
In the field of labor relations, a strict distinction between employer and worker or employee is essential. These two roles must remain separate and cannot be merged into one person. This is necessary to ensure objective control over the performance of labor duties and the performance of labor functions.
Imagine if the same person is both an employer and an employee, how can objective control over his actions be ensured? Who will see to it that he fulfills his duties? The answer is clear - in such a case, there is no legal interest for the person to control himself in matters of labor discipline. After all this, if he finds a violation, he will have to impose disciplinary punishment on himself, after which he will have the right to challenge his own order in court.
At the same time, the worker or contract employee works under the control and instructions of the employer. In accordance with the specifics of the relationship when providing work for a certain remuneration, the employment contract cannot be concluded in this way.
The employer-employee distinction remains a fundamental principle of labor law necessary to ensure fairness and efficiency in employment relations.
However, the difference between the employment contract and the management and control contract should also be clarified here. The contract of management and control is a contract by which the commercial company entrusts the management of a limited liability company or a joint stock company to the manager - trustee. This type of contract is regulated not by the Labor Code, but by the Commercial Law. By virtue of this contract, the manager undertakes to organize and manage the activities of the company at his own risk and in accordance with the current legislation, the company contract, or statutes, as well as the decisions of the General Meeting of partners, etc., being responsible for company affairs and representing the company before third parties.
With this contract, the achievement of a specific result is assigned, i.e. speaking of a management and control contract, we mean a civil law contract that regulates the relationship between two equal civil law subjects, and not an employment contract in which the employee undertakes to provide his workforce to the employer.
Reference:
paragraph 1, item 1 of the additional provisions of the Labor Code
Art. 141, para. 7 of the Commercial Law
Art. 241, para. 6 of the Commercial Law
Art. 244, para. 7 of the Commercial Law
