A contractor or consultant generally runs their own business and provide skills and services to others in exchange for a fee.
Contractors have control over the hours they work, how they deliver their service and whether they employ others. They meet their own tax, superannuation and insurance obligations, and do not get paid to take leave.
They are usually hired to do a specific job for a specific term and are paid for that job. True contractors will perform work for more than one employer.
The Australian Taxation Office offers an Employee / Contractor Decision Tool that you can use to help you decide.
Sometimes referred to as a Consultants agreement or a Contractors agreement these types of Service Agreements range from the very simple to the very complex.
The most basic agreement will include provisions that deal with;
These most basic provisions will provide a sound foundation for your business relationship and clarify the obligations and responsibilities of the parties.
The parties should each read the document thoroughly to ensure it reflects their requirements. Once it has been signed it becomes legal and binding on the parties.
RP Emery provide several professionally drafted service and consultancy agreements making the task just that little bit easier. These documents are quite flexible and easily adapted to most industries.
Independent Sole Trader and Contractors Agreement is suitable whenever you engage the services of a Sole Trader where that person is acting in the capacity of a Consultant or an Independent Contractor.
Incorporated Contractors Service Agreement is suitable whenever you engage the services of another Company where that Company is acting in the capacity of a Consultant or an Independent Contractor.
Consultancy Agreement – defines the terms and conditions under which you are providing your specialist services to a client.