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Independent Contractor Agreement

Independent Contractor Agreement

Independent Contractor Agreement

Perth Commercial & Corporate Lawyers

Whether you are interested in offering your services as an independent contractor, or if you require a contractor to fulfill a specific task for you, an independent contractor agreement is an essential document that defines the working relationship between a contractor and a client.

West Perth Legal’s tailored service on independent contractor agreement

  • Professional independent contractor agreement: providing professionally drafted and tailored independent contractor agreements, or a template for you to use for similar jobs.
  • Legal review: reviewing and providing advice on an existing independent contractor agreement.
  • Legal negotiation: negotiating the terms of an independent contractor agreements on your behalf and in your best interest.

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Independent Contractor Agreement

What is an Independent Contractor Agreement?

An independent contractor agreement is an agreement documenting the terms and conditions when an independent contractor is hired for their expertise to complete a specific task. An independent contractor is not intended to be an employee. Examples are when an auditor is engaged to audit the financial accounts for a particular financial year; a web designer engaged to create a website; or a trades person engaged to build a piece of equipment.

Factors that indicate whether someone is an independent contractor includes:

  • The contractor has high level of control over how work is performed, such as hours of work and work location.
  • The contractor takes the financial responsibility and risk for work performed such that if the work is not performed properly the contractor may not be paid.
  • The contractor supplies the tools and equipment for the job.
  • The contractor can delegate or subcontract work to another party.
  • The contractor can decide how long the work may take to complete.
  • The contractor is usually engaged for a specified task. (From Fair Work Ombudsman)

Having an effective independent contractor agreement is especially important in ensuring the parties have a mutual understanding of the scope of work and nature of the relationship. From a hirer’s perspective, this will minimise any delays or over expenditure. From a contractor’s perspective, this will provide clarity around their responsibilities and certainty over payment terms.

We understand the importance of a well-drafted and comprehensive independent contractor agreement. Whether you are a contractor seeking to protect your rights or a business looking to engage independent professionals, our experienced Commercial Lawyers are here to assist. With our tailored independent contractor agreements, you can embark on your professional ventures with confidence and peace of mind.

Why Are Independent Contractor Agreements Important?

Tax Consequences

Having an independent contractor agreement in place signifies that the arrangement is not intended to be an employer/employee relationship. Although it is not the only determining factor, it can reduce the risk of the contractor being deemed an employee, which affects tax liabilities for both parties.

Scope of Services

A clearly defined scope of work ensures that the parties are clear on the tasks and responsibilities of the independent contractor. This reduces the risk of misunderstanding and dispute over deliverables and fees.

Payment Terms

Payment terms define the process for issuing work order, invoicing, rates, and payment schedules. This provides certainty to both parties for the process of issuing work to payment.

Intellectual Property Rights

Intellectual property rights clause specifies which party owns intellectual property rights from the work created during the contract period. Without specifying ownership, the ownership rights to intellectual property can become the source of a dispute. Moral rights of the contractor could also be addressed.

Liability for Acts and Omissions

The indemnity clause specifies the liability for losses caused due to the beach of the contract. This can include both direct loss and consequential loss. It is important to consider the breadth of the indemnity requirements given any requirements that are deemed to be unfair or harsh may be deemed unenforceable.

Termination & Dispute Resolution

When the job does not go as planned, or is not performed to the standard expected, the termination and dispute resolution clauses can be useful. They contain provisions for the right to early termination, what constitutes a breach of contract, consequences of termination, and dispute resolution mechanisms.

Frequently Asked Questions



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