INDEPENDENT CONTRACTORS AGREEMENT

Crafted by legal professionals in Australia, our documents are not only legally sound but also easily customisable to suit your specific requirements. With each purchase, receive a free legal drafting booklet to guide you through the editing process seamlessly.

employment contract with schedule

What is included

In this Contractor Agreement the client’s details and variables in the contract are contained in a schedule, making it a handy form for use in the field.  The Contractor Agreement is couched as an offer, accepted by the client providing further instructions or asking the contractor to perform work.

The Schedule allows the contractor to specify work done by hourly rate or fixed fee, and to define the scope of the retainer.

  • Acceptance of offer
  • Interpretation
  • Engagement
  • Term
  • Key employee
  • Remuneration
  • Billing
  • Interest on unpaid costs
  • Out of pocket expenses
  • Expenses & disbursements
  • Restrictive covenant
  • Confidentiality
  • Termination
  • Retention of documents
  • Disclaimer
  • Governing law.

 

This Independent Contractors Agreement + Schedule is 11 pages long and includes GST.

Comprehensive Coverage

Ensuring you have everything you need in one place.

Free With Every Purchase

Our legal drafting booklet to guide you through the necessary steps in editing your documents.

Easy Customisation

Each document is designed to be easily editable, allowing you to tailor the agreements to your specific needs without hassle.

Legally Sound

All our documents are crafted by legal professionals and adhere to Australian legal standards, giving you confidence in their validity.

Suitability

Australia

Preview Sample

 

INDEPENDENT CONTRACTORS AGREEMENT
What is an Independent Contractors Agreement

An Independent Contractor Agreement is a legal document that outlines the terms and conditions under which an independent contractor will provide services to a client or company. Unlike employees, independent contractors operate as self-employed individuals or businesses, and this agreement helps establish the nature of their working relationship, protecting both parties. Here are the key elements, benefits, and considerations of an Independent Contractor Agreement:

Key Elements of an Independent Contractor Agreement

  1. Parties Involved:
    • Identification of the client (the party receiving the services) and the independent contractor (the party providing the services), including their legal names, addresses, and contact information.
  2. Scope of Work:
    • Detailed description of the services to be provided by the contractor, including specific tasks, deliverables, and timelines.
  3. Payment Terms:
    • Breakdown of payment details, such as the fee structure (hourly, project-based, or retainer), payment schedule, due dates, and any additional costs (e.g., travel expenses, materials).
  4. Duration and Termination:
    • The term of the agreement, including start and end dates, and the conditions under which the agreement can be terminated by either party, including notice periods and any associated fees or penalties.
  5. Confidentiality:
    • Provisions to protect any confidential information shared during the engagement, ensuring sensitive data is not disclosed without permission.
  6. Intellectual Property:
    • Clauses addressing the ownership and rights to any intellectual property created during the engagement, ensuring clarity on who retains these rights.
  7. Independent Contractor Status:
    • Explicit statements confirming that the contractor is an independent entity and not an employee of the client, and outlining the implications of this status, such as tax responsibilities and lack of employee benefits.
  8. Liability and Indemnity:
    • Clauses limiting the contractor’s liability and indemnifying the contractor against certain claims, protecting both parties from potential legal issues.
  9. Dispute Resolution:
    • Mechanisms for resolving disputes, such as mediation or arbitration, and the governing law and jurisdiction.
  10. Insurance:
    • Requirements for the contractor to carry specific types of insurance (e.g., liability insurance, workers’ compensation) to cover any potential risks associated with the services provided.

 

What are the benefits

Benefits of an Independent Contractor Agreement

  1. Clarity and Transparency:

    • Defined Roles: Clearly outlines the scope of work and expectations, ensuring both the contractor and the client understand their responsibilities.
    • Payment Terms: Specifies payment details, preventing misunderstandings or disputes over fees.
  2. Legal Protection:

    • Binding Contract: Serves as a legally binding document that protects the interests of both parties in case of disputes.
    • Risk Management: Includes clauses that limit liability and manage risks associated with the engagement.
  3. Professionalism and Credibility:

    • Formalisation: Establishes a formal relationship, enhancing the professional standing of the contractor and the perceived value of their services.
    • Accountability: Holds the contractor accountable for delivering the agreed-upon services, ensuring consistent quality.
  4. Confidentiality and IP Protection:

    • Safeguards: Protects sensitive information and intellectual property through confidentiality and IP clauses, fostering a trusting environment.
  5. Flexibility:

    • Tailored Services: Allows for the customization of services to meet the specific needs of the client, which can be clearly outlined in the agreement.
    • Adaptability: Can be adjusted to reflect changes in the working relationship, such as extending the duration or modifying the scope of services.
  6. Tax Clarity:

    • Responsibilities: Clarifies tax responsibilities, ensuring that the contractor understands their obligations to pay self-employment taxes and that the client is not responsible for withholding taxes.

Considerations and Challenges

  1. Scope Definition:

    • Ensuring the scope of work is well-defined to prevent scope creep, where additional tasks are added without corresponding adjustments in fees or timelines.
  2. Compliance:

    • Ensuring the agreement complies with relevant labor laws and regulations to avoid potential liabilities.
  3. Relationship Dynamics:

    • Managing the relationship to ensure it remains within the boundaries of an independent contractor arrangement, avoiding behaviors or conditions that might imply an employer-employee relationship.

Example Scenario

A small business hires an independent web developer to create a new company website. The Independent Contractor Agreement specifies that the developer will provide 100 hours of work over a three-month period, focusing on website design, development, and testing. The developer’s fee is $50 per hour, payable at the end of each month. The agreement includes confidentiality clauses to protect the business’s proprietary information, IP clauses to define ownership of the website code, and a termination clause allowing either party to end the contract with 14 days’ notice.

Conclusion

An Independent Contractor Agreement is a valuable tool that brings clarity, professionalism, and legal protection to the working relationship between an independent contractor and a client. By clearly defining the terms of engagement, such agreements help ensure that both parties have aligned expectations and are committed to a productive and positive working experience. This agreement ultimately supports the successful delivery of services and the achievement of project goals.

About us

Established since 2015, Precedents Online leads the industry with a diverse collection of over 300 legal templates. Our legal documents, meticulously crafted by practicing Solicitors and renowned legal authors, provide you with the precise solutions you seek. Step into a world where legal paperwork is made easy .

Eric Kalde is the author of over 300 +  practice guides published through the leading Australian legal publishers Precedents Online.
Lawyers all over Australia rely on Eric Kalde’s precedents and practice guides in their legal practice.
Free Legal Drafting Handbook

Precedents Online, helping you draft like a pro! Receive a free handbook with any purchase of our customisable legal document templates.  Start drafting with confidence using our expertly crafted precedents with our bonus guidebook.

Choose Your Template