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What’s in a Contractor Agreement?
If your business engages contractors, it’s a good idea to have a Contractor Agreement in place with each contractor you engage. This sets clear expectations about the scope and standard of services to be provided, fees and payment, confidentiality, IP ownership and termination processes.
A Contractor Agreement drafted to meet your business' requirements
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A Contractor Agreement is a legally binding contract between a business and an independent contractor, setting out the terms and conditions under which services will be provided. Unlike an employment contract, a Contractor Agreement clarifies that the individual or business providing the services is not an employee but rather an independent contractor. This distinction is important because it defines the nature of the relationship, responsibilities, and rights for both parties.
The agreement serves as a foundational document to formalise the arrangement, making sure both parties understand the scope of work, payment terms, and other expectations. By documenting these terms, the Contractor Agreement helps avoid misunderstandings and sets clear guidelines on how the business and contractor will interact and complete the work.
This agreement can cover a wide range of services, from consulting, design, and IT support to specialised, industry-specific tasks. It’s commonly used by businesses that need flexible support for projects or services that fall outside their day-to-day operations, allowing them to bring in specialised expertise without hiring full-time staff.
A Contractor Agreement also ensures that the relationship meets legal requirements. Misclassification of a contractor as an employee can lead to tax, insurance, and entitlement issues, so defining the contractor’s status in a formal agreement is essential. This document also helps both parties understand their legal rights, clarifying who is responsible for things like insurance, taxes, and intellectual property rights related to the work.
In summary, a Contractor Agreement provides structure and clarity to a business relationship with an independent contractor, offering legal protection, defining the scope of the engagement, and ensuring compliance with relevant employment laws.
A Contractor Agreement is essential for both businesses and contractors as it formalises the working relationship and provides clear expectations. Here’s why having a Contractor Agreement is beneficial:
Whether you’re a business or a contractor, a Contractor Agreement is crucial to ensure that the arrangement is legally sound, transparent, and tailored to the needs of both parties. It’s a proactive step that protects interests, fosters good communication, and helps avoid potential conflicts.
Using a free Contractor Agreement template might seem convenient and cost-effective, but there are risks associated with templates that don’t account for the unique needs of your business or project. Here’s why it’s often worth investing in a lawyer-drafted agreement:
While free templates may appear convenient, a lawyer-drafted Contractor Agreement provides the customisation, legal protection, and peace of mind needed to ensure a secure and compliant working relationship.
Our fixed-fee packages for Contractor Agreements start at $800 + GST. This includes a Contractor Agreement drafted to meet your specific needs, phone consultations with a Sprintlaw lawyer and a complimentary amendment to the final draft we provide to you.
As an online law firm, we eliminate the headaches of paying us by the hour and finding time to meet with a lawyer in person. We communicate via phone, email and cloud conferencing — whichever suits you! We know you’re busy, so we’re only a click away.
You’ll be guided through this process by our expert lawyers, who are Australian-qualified and were trained at leading law firms. They left the traditional corporate law sphere to help us make legal services better. Our lawyers specialise in technology, intellectual property, contract drafting, corporate and commercial law.
We’re an award-winning, totally online law firm. Forget the hassle of meeting a lawyer face-to-face. Our top-trained lawyers are ready to help wherever you are in Australia.
Our lawyers were recruited from Australia's top firms and use our custom-built technology to provide a better and more affordable legal service.
1 / Get a free quote
Our legally trained consultants will prepare a fixed-fee quote for you.
2 / Accept online
Accept your fixed-fee quote and e-sign our engagement letter.
3 / Speak with a lawyer
Our expert lawyers will talk you through your project via phone, video call or whatever suits!
That's it!
Receive your completed project, usually within 5 - 10 working days.
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