While a Consultancy Agreement is used to engage a consultant, an Employment contract is used to hire and engage an employee. Employees have certain employment rights which consultants (as self-employed individuals) do not have. For example, employees, unlike consultants, are entitled to statutory holiday and sick pay. As a result, it is crucial that you use the right document for your specific needs and circumstances. If you’re unsure about what document you should use, Ask a lawyer.