Independent Contractor Agreement


★ Clearly define your relationship with a contractor

★ Avoid misunderstandings and disputes

★ 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

What is a Independent Contractor Agrement?

An Independent Contractor Agreement is a legal contract between a business and an independent contractor or consultant. It outlines the details of the work or project to be performed and the terms of the agreement.

It covers all of the important aspects of your relationship, including services, payment terms, confidentiality, termination and limitation of liability.

It helps to set the ground rules so that both parties can understand their obligations from the start.


Do I need a contract?

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

You should always have a contract signed before a new contractor starts working for you.

You need a proper written contract to enforce your rights and make sure your business is legally protected in case something goes wrong.

Our Independent Contractor Agreement template will help you avoid misunderstandings and disputes.


Are there any other names for an Independent Contractor Agreement?

Yes, you might have also heard this contract referred to as a Contractor Agreement or Consulting Agreement.

All of them are basically the same thing, just different names for the contract you use to hire a contractor.


What does this Independent Contractor Agreement template include?

Our Independent Contractor Agreement template covers everything you need:

★ Term

★ Services

★ Scope

★ Equipment

★ Payment

★ Restraint

★ Confidentiality

★ Intellectual Property

★ Guarantee and Warranties

★ Indemnity

★ Dispute Resolution

★ Termination


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


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


Still not sure about the difference?

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 back-payment of wages and entitlements.

This agreement makes it crystal clear that you have a true Independent Contractor arrangement.


How do I include all of the details for the job in the contract?

We have included a Job Sheet in the contract where you can write down all of the specific details of the services or project. This includes things like job description, start date, services to be provided and fees.

If you have any questions about how to fill this out, you’re welcome to Contact Us.


Does the contractor get paid a fixed fee, or an hourly 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.


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.


Can I terminate the agreement for non performance?

Yes you can.

Our template includes a detailed Termination clause which allows you to terminate for non performance or failing to meet key responsibilities listed in the agreement.

Who is this for?

★ A business (“principal”) engaging a contractor for specific services or a project

★ Independent Contractors

★ People who want proper legal protection

★ People who want to appear professional

★ People who want to avoid misunderstandings and clearly define the business relationship with a contractor

★ It is NOT suitable for an employee

Why You Need This

Clearly set out your terms for contractors

You will appear more professional and avoid misunderstandings if you have a professional legal contract.

You can also refer back to the contract if there are any disputes with contractors about deliverables, payment etc.

Avoid Risk

A contract will help you to avoid risk and limit your liability if something does go wrong.

Protect your business and assets

As the old saying goes, plan for the best and prepare for the worst.

You never know what will happen in the future, but it is vital that you have a contract in place to protect everything you have worked hard for.

How does it work?

Our process is designed to be as easy as possible – you could be up and running in as little as 5-10 minutes.

1.  Select the Independent Contractor Agreement template in the Shop and click Add To Cart.

2.  Proceed to Checkout and complete your purchase.

3.  You will receive an email with a download link immediately after have completed your purchase

4.  Open the document in MS Word and complete the highlighted fields with your personal information (name, ABN etc). Your document will be ready to go in minutes!


Can’t I just copy this contract from someone else?

Don’t do this.

1. This is copyright infringement and is against the law.

2. You might accidentally copy terms and conditions from another country – if you end up in court for some reason it might be on the other side of the world!

3. It won’t be customised to YOUR business. Not a good look for your customers if your info is wrong…


Can I customise the templates beyond editing the fields?

Our templates come in Word format, so yes you can if you want. Feel free to add your logo and change the font to reflect your brand.

We do not recommend you change the wording (apart from the fillable fields) as this can affect the legal protections contained in the document.


What if the law changes and my templates become outdated?

If the law changes, we’ll email you with the changes and updates to add to your existing templates. So please ensure you keep us updated if your email address changes.

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