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An independent contractor agreement is an important agreement for both someone hiring an independent contractor and the person who will be working as the contractor. The agreement should outline what the work entails and what kind of payments will be rendered for services.
Personal information from both parties will be needed, such as names, addresses, and contact information. It should also include detailed information about the services rendered and how the contractor will be paid for work. Other information can be included as needed, such as confidentiality clauses or length of employment.
The independent contractor agreement should be signed by both parties. The contract should be kept in both the employer's and the contractor's records for future reference. A witness may also be needed, or legal counsel can look over the agreement.
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Contents of an Independent Contractor Agreement
There are many perks to hiring an independent contractor. You get someone who is in and out - someone you don't have to worry about meshing with the company culture or issuing benefits for. However, be sure you have a good independent contractor agreement form going into the process. It can be hard to know how to handle this situation, especially as a new entrepreneur. Below, we've given you everything you need to know about drawing up an independent contractor agreement template. After all, being informed is a great deal safer than downloading some free independent contractor agreement form off the internet!
Lay Down Ground Rules
The contract must define the independent contractor as such, making it clear that he or she does not receive employee rights. There should be a clause stating that the contractor does not receive insurance, employee forms such as the W2 , or a permanent position at the company. This clause should also protect the "independence," of the contractor, forbidding the employer to meddle in the IC's work schedule or methods. The employer only has a say in the end result.
You should also include clauses stating the following -
- which resources are to be provided by the company, which the contractor must provide, and any specifications about standards
- the boundaries of the IC's agency - in other words, a statement preventing the contractor from representing the company the way an employee might.
Spell It Out
Define the work being commissioned , as well as the responsibilities of both contractor and employer. This section needs to be detailed . If necessary, you can throw it into a separate document, which you can append and refer to throughout as something like "The Work."
There should also be clauses defining the project's duration (specific start/end dates), conditions under which it may be terminated, and promised compensation.
Draw That Line in the Sand .
It is important that the agreement state exactly what belongs to the contractor and what is the sole property of the company. This is particularly vital in the case of "intellectual property," such as artwork or other creative content.
Cover Your Butt
Include a clause protecting confidential information, both during and following the agreement.
You should also throw in a liability clause that protects both parties from indictment, lest something crazy should occur. "Something crazy" could include bodily harm, loss of revenue, or interference by a third party, so this is crucial.
Make It Official
The agreement should conclude with dated signatures of all parties, as well as a mention of the agreement's legal jurisdiction.