(a) a personal services contract is characterized by the employer-employee relationship it creates between the government and the contractor’s personnel. obtaining personal services by contract, rather than by direct hire, circumvents those laws unless congress has specifically authorized acquisition of the services by contract. (1) an employer-employee relationship under a service contract occurs when, as a result of (i) the contract’s terms or (ii) the manner of its administration during performance, contractor personnel are subject to the relatively continuous supervision and control of a government officer or employee.