Independent Contractor Agreement

$129.00 inc. GST

  • Grow your team or hire a specialist for a project
  • Suitable for all Australian states and territories
  • Peace of mind that your business is legally protected
  • Drafted in plain English by Australian lawyers
  • Complete our Independent Contractor Agreement template in under 10 minutes
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What is an Independent Contractor Agreement?

An Independent Contractor Agreement is a legal contract that allows a business to engage a contractor to provide services.

Independent Contractor Agreements are very common and can be used in almost any industry. They can be used when you outsource work to a contractor for on-demand services, expertise in a particular area, or to complete specific tasks for a project.

A well-written agreement will not only provide you with legal protection; it will also help manage your contractor’s expectations.

 

Who can use this template?

  • Business hiring a contractor
  • Independent Contractors
  • Freelancers
  • Consultants
  • Professionals
  • Specialists
  • All Australian states and territories

 

Do I need a contract?

Yes, definitely! A contract protects both you and your contractors.

Putting things in writing protects both parties and gives certainty.

Contracts are about more than wrapping your contractors up in red tape and telling them what they can’t do. Think of your contract as relationship insurance: it does all the hard, boring work of keeping the relationship on track so that you can focus on the fun part – the actual business.

 

Other names for an Independent Contractor Agreement

  • Contractor Agreement
  • Freelance Agreement
  • Consulting Agreement
  • Services Agreement

 

What does this Independent Contractor Agreement template include?

Our Independent Contractor Agreement template covers everything you need:

  • Contractual Relationship – makes it clear that the contractor is not an employee, agent or partner
  • Term – how long they will be engaged
  • Services – the services to be provided by the contractor
  • Scope – the scope of the services the contractor will provide
  • Equipment  – generally, contractors provide their own equipment
  • Payment – covers payment terms
  • Statutory Obligations, Licences and Registrations – to make sure contractors comply with their legal obligations
  • Compliance – to make sure contractors follow your policies and procedures
  • Restraint – to protect the interests of the client. In practice, this can be difficult to enforce.
  • Confidentiality – to keep confidential information private between the two parties
  • Intellectual Property – this covers the rights to intellectual property created
  • Guarantee and Warranties – guarantee as to due care and skill and any warranties provided by the contractor
  • Indemnity – an important legal clause
  • Dispute Resolution – process to manage a dispute if a problem arises
  • Termination – this explains how either party can terminate the agreement
  • General – includes standard contract clauses such as Assignment, Severance, Entire Agreement, Waiver and Governing Law
  • Job Sheet – table with a summary of the Job (services, scope, start date, key responsibilities etc.)

 

Can this Independent Contractor Agreement template be used by both contractors and businesses hiring them?

Yes, this template is suitable if you are a contractor or a business looking to hire a contractor. However,​ if you’re a contractor, you may prefer to use a Service Agreement as the terms have been drafted to be more favourable for the contractor (service provider).

 

Differences between an employee and a contractor

Whether you are an employee or a contractor depends on many different factors.

Independent contractors generally:

🔹 work for themselves and are their own boss

🔹 are free to accept or refuse work

🔹 control their own working times

🔹 provide their own tools and equipment

🔹 have no guarantee of future work

Employees generally:

🔸 work in someone else’s business

🔸 are subject to controls on how, where and when they do their work

🔸 are paid a wage

🔸 receive employee entitlements, such as sick and annual leave

🔸 have the expectation of ongoing work

 

Further Information

We recommend you visit the Fair Work Ombudsman website to read more. If you’re an employer, visit the ATO’s website to learn the tax and super obligations for both employees and contractors and read more about the differences between them.

 

What is sham contracting?

sham contracting arrangement is when an employer attempts to disguise an employment relationship as an independent contracting arrangement. This is usually done to avoid paying employee entitlements. Even if you make an innocent mistake, you can still be fined!

If you’re convicted of sham contracting, you could be hit with a fine of up to $12,600 as well as a back-payment of wages and entitlements.

Our Independent Contractor Agreement template makes it crystal clear that you have a true independent contractor arrangement.

 

Does the contractor get paid a fixed fee or an hourly/daily rate?

It’s up to you to negotiate fees with the contractor.

For a specific project, you might like to have the cost certainty of a fixed fee, but it’s very common for contractors to charge out at an hourly or daily rate.

Some factors that can influence the fees include the length of the project, the skills required to do the job and the scope or size of the project.

 

Is this Independent Contractor Agreement template legally binding?

Absolutely!

All of our templates are written by qualified Australian lawyers who hold an Australian legal practicing certificate.

We are affiliated with a commercial law firm based in Sydney.

More Details

Can we negotiate on the key terms of the Independent Contractor Agreement?

You bet!

Before you kick off your project, you should discuss the commercial terms and negotiate a position that both parties are happy with.

Don’t forget to ensure that the terms you have agreed to are reflected in the final contract that both parties sign.

What can I do if things don’t work out?

We have included a termination clause in the contract which explains the conditions and notice period required for either party to terminate the agreement. For example. if one party breaches the agreement and fails to remedy the breach within 14 days, the other party is within their rights to cancel the contract.

Our template allows for the business (principal) to terminate for non-performance or if the contractor fails to meet the key responsibilities listed in the agreement.

How do I stop a contractor from taking my clients or competing with my business?

We have included a restraint clause in our Independent Contractor Agreement template to prevent the Independent Contractor from taking clients or employees away from your business or competing with your business. Please note that this can be difficult to enforce in practice, and you should seek legal advice.

FAQ

All of our templates come in Word format (docx). We recommend that you use Microsoft Word on a desktop to fill in the template.

Yes, all of our templates have been drafted by qualified Australian lawyers who hold an Australian legal practicing certificate.

Yes, the template is suitable for all Australian states and territories.

What do I have to do after I download the template?

The template includes instructions on how to use it, as well as helpful comments along the way to guide you. Don’t just take our word for it, read what other customers have said about our products here.

Estimated time to complete the template in Microsoft Word is around 5-10 minutes. We have designed our templates to be very user-friendly.

How often are the templates updated?

We frequently update our template library and provide minor updates to wording and formatting in our documents.

If the law changes, we’ll email you with the changes and updates to add to your existing templates. You have lifetime access, so any updates are provided free of charge.

Refunds

We offer a 14 day moneyback guarantee on all purchases.

We want to make sure you are 100% happy!

We have worked hard to provide quality legal documents for Australian small businesses.

We’re confident you will LOVE our products – but we offer this extra guarantee so you don’t have to worry.

Our no-hassle, 14-day refund policy means that if you are not satisfied, for any reason, we’ll work with you to make sure you’re happy, even if that means a full refund.

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JZ
10 June 2021
Jane Z.
AU AU
I recommend this product
Easy Peasy

Purchased the Independent Contractor Agreement. What a breeze. So easy to complete with step by step instructions along the way.

A Easy Legal Templates Customer
SG
17 May 2021
Sonia G.
AU AU
I recommend this product
Quick & Easy

I recently purchased the independent contractor agreement. Being an accountant there are certain things that I look for in these types of agreements and it covered off on them all. The contract was expertly written and came with clear instructions on how to use the template. Thanks ELT!

KP
19 April 2021
Kelly P.
AU AU
I recommend this product
Easy to use & Great service

Thanks so much for your amazing service, I got what I needed after making a mistake with my order, and they were only too happy to assist me! So pleased I found you. Thanks again.

JR
17 March 2021
Jay R.
AU AU
I recommend this product
So Easy & So Affordable...

WOW I just loved using Easy Legal Templates. I got the document I needed straight away, filled it in and BOOM! Signed, Seal and Delivered! Done and dusted in minutes! So easy!

LE
19 January 2021
Laura E.
AU AU
I recommend this product
So easy to use - highly recommend

The process to download the template was easy and it was written in plain English. So easy to update and my contractor commented on how good it was! Thank you