Independent Contractor Agreement

Independent Contractor Template that protects your business

It’s 4.42 pm and you’ve found the perfect independent contractor for a project. You want to start tomorrow. But you’re stuck. You want everything clear and legal – and you don’t have a contract.

Grab our Independent Contractor Agreement. In less than ten minutes, you’ll have the contract in your hands. It’s written by lawyers, so there’s no stressing about the legalities. Simply fill in your details, get it signed and start your project.

With lifetime access, you’ll never worry about using a contractor or freelancer to help you hit your business goals.

What is an Independent Contractor Agreement?

An Independent Contractor Agreement is a legal contract between a small business, entrepreneur, or sole trader, and a contractor.

A contractor is not an employee. They’re their own boss. Contractors give you the flexibility to engage freelancers or specialists in your business to deliver one-off projects or services.

Using an independent contractor is perfect when you need a project done fast. Or you need someone with specific expertise and knowledge to get what you need. They’re ideal for short-term deliverables. And for when you just need to get stuff done.

You can move the needle in your business with an Independent Contractor template

• That gives you peace of mind your legals are covered
• Avoids any awkward conversations because the relationship is clear
• Shows you’re a professional who’s legit

Who can use this Independent Contractor Agreement?

• Businesses
• Entrepreneurs
• Sole traders
• Consultants
• Professionals
• Freelancers
• All Australian states and territories

Other names for an Independent Contractor Agreement

• Contractor Agreement
• Freelance Agreement
• Consulting Agreement

Do I need a contract?

Yep. No doubt about it. What will you do if something goes wrong?

A contract protects both you and your contractors.

It’s not about big legal words and getting the upper hand on your contractor. It’s relationship insurance. A legally binding contract does the boring legal leg work, manages expectations, and provides certainty. That way, you can focus on what you want to achieve in your business.

Make sure your contract does the hard work for you.

What does this Independent Contractor Agreement template include?

Our comprehensive 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 the contractor will provide
• Scope – the scope of the services the contractor will provide
• Equipment  – generally, contractors provide their own equipment
• Payment – clear 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 ensure the contractor doesn’t disclose confidential information
• Intellectual Property – who owns the rights to intellectual property
• Guarantee and Warranties – guarantee as to due care and skill and any warranties provided by the contractor
• Indemnity – an important legal clause
• Dispute Resolution – a process to follow if something goes wrong
• Termination – explains how either party can terminate the agreement
• General – standard contract clauses such as Assignment, Severance, Entire Agreement, Waiver and Governing Law
• Job Sheet – table with a summary of the Job or project (services, scope, start date and key responsibilities)

Differences between an employee and a contractor

There’s a lot at play which is why it’s important to have an agreement in place.

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

Want more information on employees vs contractors?

For more information visit the Fair Work Ombudsman. If you’re an employer, head to the ATO’s website to learn more about the tax and super obligations for employees and contractors and the differences between employees and contractors.

What is sham contracting?

Working on a nod and a handshake can end in disaster. Our Independent Contractor Agreement protects you from this headache.

Some dodgy employers create sham contracting arrangements. They’re trying 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 clear you and your contractor are not employer and employee. You can confidently engage a contractor and move forward with peace of mind.

Fixed fee or an hourly/daily rate?

It’s up to you to negotiate fees with your contractor. You can negotiate a fixed price for a specific project. Other projects may be a day or hourly rate. This is part of your commercial negotiation.

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.

Termination

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

It’s important to have a clear termination clause in your contract so that you aren’t stuck paying for a service that isn’t being delivered!