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This Independent Contractor Agreement template is intended to be used to clearly articulate and establish the terms and conditions of a contract between your company and an independent contractor.
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If you’re searching for an Independent Contractor Agreement template, chances are you're planning to hire your first independent contractor. Congratulations! We share your excitement in taking this first step!
There are multi fold advantages to using Independent Contractors such as short-term project specific expertise and cost savings as contractors are not provided with benefits such as medical and vacation leaves. However, be aware that tax regulators in most countries have strict assessment on the definition of independent contractors. It will cost your company money and, in some cases, damaged reputation if your independent contractor is reclassified as an employee by the taxman.
The first step is to put in place an Independent Contractor Agreement before services are provided. We strongly recommend using your own Agreement instead of one provided by the contractor. This is to ensure your company’s legal position is protected and that it’s a fair contract for both parties.
An Independent Contactor Agreement spells out clearly the status of the relationship (i.e. non-employee), services provided, fees, duration of contract, contract termination obligations for both parties and expected code of conduct, among others. The Agreement makes it very clear that this is strictly an independent contractor relationship (very important!) and is written in simple language that’s easily understood and interpreted. To reduce the work in preparing the Agreement, we have put together an Employment Offer Form. The offer form is an internal template that is provided to hiring managers and other stakeholders to fill out and submit to HR. The form contains pertinent information such as fees/compensation, list of services provided and contract start and end dates. All you need to do is transpose/copy the information in the Offer Form to the relevant placeholders in the Independent Contractor Agreement. Review the Contractor Agreement one final time and you’re done!
If you are using the Employment Offer Form to prepare the Indepedent Contractor Agreement, ensure all details required for preparation of the Contractor Agreement has been provided in the Offer Form. This is an important step as the Offer Form needs to be approved before preparing the Contractor Agreement.
Once the Indepedent Contractor Agreement has been modified:
Clearly articulating contract terms and conditions, and requesting confirmation that the contractor understands and signs off on them:
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Independent Contractor Agreement | | | Accompanying Instructions for HR |
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The template referenced on this page can be used on its own as a stand-alone tool, or in conjunction with other HR templates in the Contracts & Agreement Kit that includes the following documents: This form template ensures that all information about a candidate and position is collected and summarized, so that HR has the information they need to process an employment or independent contractor agreement. A contractual agreement template between the company and the employee that establishes the terms and conditions of employment. This agreement template is intended to be used to clearly articulate and establish the terms and conditions of a contract between your company and an independent contractor. A contractual agreement between an employee and your company allows you to bypass overtime rates by averaging the employee’s hours of work over a period of 1, 2, 3, or 4 weeks. This is a contract agreement that is signed by Staff, in the presence of a witness, to acknowledge that they've read, understood, and will adhere to the Staff Policies section in your Employee Handbook. An agreement used to obtain signed confirmation from front line and reception staff to acknowledge their understanding of company protocols and expected service levels. This document is a template spreadsheet that will help your company calculate the costs associated with terminating an employee, and to obtain authorization to terminate. Contracts & Agreement Templates in this Kit
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