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Freelance Contractor/Consultancy Agreement for use by Limited Companies and sole traders

Why do I need this document?

If you take on temporary staff, you will be giving them access to your business secrets, premises and customers and you need to ensure that you impose duties on them to protect this information and follow your business processes. This is because there is no implied duty of confidentiality owed by a self-employed consultant (as there would be for an employee). Equally, you do not want them to inadvertently become an employee ( as opposed to remaining self-employed) as this will create extra obligations on you from a tax and employment law point of view. ‘Employees’ have automatic rights against unfair dismissal and redundancy not to mention statutory maternity/paternity rights etc. whereas self-employed contractors do not.
For those businesses in the creative industry, it is vital to understand that if you sub-contract a creative project, the intellectual property rights (e.g. copyright) arising as a result of services provided will normally belong to the consultant and NOT to you. As you will usually want to take ownership of these rights, it is important to include specific assignment provisions in the consultancy agreement.

When do I use it?

The moment you take on temporary staff or want to subcontract work out.

What are the key terms?

This template has been drafted in the style of a letter to make it less formal and more approachable. The details of the task/project to be performed, salary and hours are all contained in a separate schedule at the end so that you have all variables in one place. Key other terms included are:

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