The key issues and risks associated with engaging independent contractors include:
- The definition of the contractor relationship (to avoid contractors making employee related claims)
- Insurance, indemnity and liability
- General covers and protections
The Business Kitz Independent Contractor Agreement Template for Australia has proven to be suitable for most Australian businesses. Each Business Kitz resource contains comprehensive guidance notes as well as helpful suggestions to assist you with populating the document.
- Welcome letter (optional) to greet the independent contractor
- Details Schedule (includes section to define organisation and subcontractor relationship, qualifications, licences, memberships or registrations etc)
- Contractor services
- Contractor fees and how these will be calculated (i.e. lump sum, per day, week, task)
- Commissions (if applicable)
- Standard of work
- Customer timelines
- Fees and expenses
- Statutory obligations and registrations
- Treatment of confidential information
- Use of confidential information
- Protection of the customer’s business
- Intellectual property protection
- Indemnity and liability
- Delivery upon termination
- General covers
Why does my business need an Independent Contractor Agreement Template?
An Independent Contractor Agreement should be used whenever you engage a third-party individual or business to provide services for your business rather than engaging an employee of your business to complete the task.
Businesses typically engage contractors to complete short-term work which often requires specialised expertise and/or specialised equipment that contractors have.
Independent Contractor Agreements are typically also used for:
- Construction workers.
- Writing and drafting copies for a business (i.e. freelancers).
- Photography and videography.
- Web development.
- Marketing campaigns
The line between an independent contractor and an employee can sometimes be blurry and considering the current employment law landscape, it is more important than ever to define this relationship.
Although implementing an Independent Contractor Agreement is not wholly determinative of whether an individual is considered to be an employee or a contractor, it can be used as evidence of the intentions of the parties to engage the individual as a contractor should a dispute arise.
Implementing an Independent Contractor Agreement also assists to clearly define the rights and responsibilities of your business and the rights and responsibilities of the independent contractor. This includes payment terms which often differ depending on the contractor who is being engaged.
It is also a useful tool to ensure that your business owns any intellectual property (IP) that is developed by a contractor for your business. As such, implementing an Independent Contractor Agreement with third-party technology specialists is a popular choice for businesses in order to better protect the business IP.
If you or your business is considering engaging an independent contractor, we suggest purchasing Business Kitz Independent Contractor Agreement for Australia to maintain clarity and direction throughout the period of engagement.
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