The Independent Contractor Agreement
The Independent Contractor Agreement
Getting the classification of your hires correct is one of the most important decisions you can make as a business owner.
The first step in protecting your work when you outsource is to have the proper contract in place, identifying the relationship of the parties.
Terms in this template are pulled directly from US case law, identifying the specific nuances the Internal Revenue Service (IRS) looks for in classifying contractors versus employees.
This template may be purchased by either an employer looking to hire an independent contractor, or by the contractor themselves.
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Who is entering into the agreement and the purpose of the agreement
Which package has been chosen and what is included in that package
What materials and access the contractor needs from the client to perform their duties, and by when
Statement on the method of service provision; that the contractor has control over their location and time at which they perform the work
Duration (dates) of the agreement
Statement on confidentiality
If a pre-work consultation is offered and what’s included in it
Fees of the independent contractors services as an hourly rate or package price
Methods of payment accepted and payment terms (initial payment, retainer/deposit, final payment, etc.)
What happens if the situation arises of a late payment
What happens when the contractor incurs expenses related to the clients work
Agreement on exclusivity, that the client will not hire any other service provider to provide the same service
Statement on the type of relationship of the parties, method of services, taxes and fringe benefits
Who owns the intellectual property and copyright rights after the contractors work is completed
The contractor retains creative license rights to perform the services with their specialized skill and talent
If the contractor may may be engaged in other business activities which does not place them in a conflict of interest with the client
How cancellations, terminations, and breaches of agreement would be handled
Requirement for the contractor to be reimbursed for time worked if the client terminates the agreement
What happens if the contractor is incapacitated and unable to perform the services
Standard legal clauses, including: Representations and warranties, limitation of liability, dispute resolution, compliance with law, waiver, assumption of risk, indemnification, merger, and force majeure
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This is an essential template for any business owner looking to hire a contractor to perform services for their business.
Alternatively, if you are looking to be a contractor for a business, you may also purchase and present this agreement to the business you intend to work with.
This agreement was drafted to protect both sides equally.
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