What type of contract grants rights like redundancy pay and statutory protection?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

The type of contract that grants rights such as redundancy pay and statutory protection is the contract of service. A contract of service establishes an employer-employee relationship where the employee is entitled to various legal rights and protections under employment law. This includes rights related to redundancy, unfair dismissal, holidays, and other employment benefits.

In contrast, a contract for service typically refers to arrangements where an individual provides services to a client without being considered an employee. This works for independent contractors or freelancers, who do not receive the same rights as employees under the law. Zero hours contracts, while still categorized under a contract of service, have specific conditions regarding the availability of work, but they also grant some level of statutory rights. Freelance agreements, similarly, do not confer employee rights, as they are based on an independent contractor status, meaning that individuals under such contracts are also not entitled to employment protections like redundancy pay.

In summary, a contract of service clearly establishes the framework through which employees gain essential workplace rights, making it the correct answer for this question.

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