Independent contractor agreement policy template

This Independent Contractor Agreement policy can help you craft a mutually beneficial contract between your company and an independent contractor. The policy clearly outlines the expectations and responsibilities of both parties, reducing the potential for disputes and misunderstandings. Download our template by clicking on the right sidebar.

What is an Independent Contractor Agreement?

An Independent Contractor Agreement is a legal document that outlines the contractual obligations between a client and a contractor. It’s used when a client hires a contractor to perform a specific task or project. The agreement ensures that both parties understand their responsibilities, the scope of work, payment details, and other terms and conditions.

What should an Independent Contractor Agreement include?

An Independent Contractor Agreement should include the following sections:

• The Parties: Identifies the client and the contractor, including their legal names and addresses.
• Services: Describes the services the contractor will provide.
• Compensation: Details how and when the contractor will be paid.
• Assignment: States whether the parties can assign their rights and obligations under the agreement to another party.

Brief & Purpose

The purpose of an Independent Contractor Agreement is to clearly define the relationship between a client and a contractor, establish the scope of work, and protect both parties’ rights. It provides a legal framework that can help prevent misunderstandings and disputes.

Step by step instructions

The parties: Clearly identify the client and the contractor. Include their full legal names and addresses.

Services: Describe in detail the services the contractor will provide. Be as specific as possible to avoid any confusion.

Term: Define the start and end dates of the agreement. If the end date is dependent on the completion of the services, state this clearly.

Termination: Specify the conditions under which either party can terminate the agreement. This could be due to a breach of contract, or at the discretion of either party with a certain amount of notice.

Compensation: Detail the payment terms, including the amount, payment schedule, and method of payment. If the contractor will be paid hourly, per project, or on commission, state this clearly.

Other expenses: If the client will cover any additional costs, such as materials or travel expenses, list these in this section.

Indemnification: Include a clause stating that the contractor will compensate the client for any harm or loss related to the contractor’s work.

Insurance required: If the contractor is required to maintain certain insurance policies, list these requirements. The client may wish to review these policies before work begins.

Other business activity: If the contractor is allowed to engage in other business activities during the term of the agreement, state this. If the contractor is prohibited from soliciting the client’s employees or clients, include this restriction.

Assignment: Typically, neither party can assign their rights and obligations under the agreement to another party without written consent. If this is the case, state it in this section.

Relationship defined: Emphasize that the contractor is not an employee, agent, or partner of the client. The contractor is an independent contractor, responsible for their own taxes and benefits.

Other agreements: Affirm that the agreement is the complete and exclusive statement of the parties’ understanding, superseding all prior agreements and discussions.

Legal notice: Specify how legal notices will be delivered, typically in writing and either personally or by certified mail.

Governing law: Identify the state law that will govern the agreement. This is typically the state where the client is located or where the services will be performed.

Signatures: Both parties should sign and date the agreement to make it legally binding. Include a line for each party to print their name.

Independent contractor agreement template

I. THE PARTIES

This Independent Contractor Agreement (“Agreement”) made this ____________, 20__ is by and between:

Contractor: ________________ with a mailing address of ________________________ (“Contractor”), and

Client: ________________ with a mailing address of ________________________ (“Client”).

II. SERVICES
The Client shall pay, and the Client shall provide the following services: ________________________________________________________.

III. TERM
The services shall begin on ____________, 20__ and end: (check one)
☐ – When the services are complete.
☐ – On the date of ____________, 20__.
☐ – Other. ________________________________.

IV. TERMINATION
Either the Client or the Contractor:
☐ – Cannot terminate this Agreement unless either party breaks its terms.
☐ – Can terminate this Agreement, without cause, by giving the other Party ____ days’ notice and providing their obligations up until termination.

V. COMPENSATION
In exchange for the services provided by the Contractor, the Client agrees to pay the following: (check one)
☐ – $________ / Hour.
☐ – $________ for the services.
☐ – Commission in the amount of: ________________.
☐ – Other: ________________________________.

VI. OTHER EXPENSES
In addition to the Contractor’s compensation, the Client agrees to pay the Contractor for the following: (check all that apply)
☐ – Materials. The Contractor’s materials used for providing the services.
☐ – Travel Expenses. The Contractor’s travel expenses to and from the location of where the services are being provided in addition to any other needs the services require.
☐ – Insurance. Any insurance required by the Contractor that is needed specifically for the services provided.
☐ – Other: ________________________________.

VII. INDEMNIFICATION
The Contractor shall indemnify and hold the Client harmless from any loss or liability from performing the Services under this Agreement.

VIII. INSURANCE REQUIRED
The Contractor is required to have liability insurance and workers’ compensation insurance in accordance with industry standards and state law. The Client has the right to review such insurance policies prior to the commencement of the services.

IX. OTHER BUSINESS ACTIVITY
The Contractor may engage in other business activities provided, however, that Contractor shall not during the term of this Agreement solicit the Client’s employees, clients, accounts, or other related business endeavors of the Client.

X. ASSIGNMENT
Neither the Client nor the Contractor may assign this Agreement without the express written consent of the other party.

XI. RELATIONSHIP DEFINED
Nothing in this Agreement shall indicate the Contractor is a partner, agent, or employee of the Client. The Client employs the Contractor as an independent contractor, and the Contractor hereby accepts.

XII. OTHER AGREEMENTS
It is agreed between the parties that there are no other agreements or understandings between them relating to the subject matter of this Agreement. This Agreement supersedes all prior agreements, oral or written, between the parties and is intended as a complete and exclusive statement of the agreement between the parties. No change or modification of this Agreement shall be valid unless the same be in writing and signed by the parties.

XIII. LEGAL NOTICE
All notices or required or permitted to be given hereunder shall be in writing and may be delivered personally or by Certified Mail – Return Receipt Requested, postage prepaid, addressed those mentioned in Section I.

XIV. GOVERNING LAW
This Agreement shall be construed in accordance with and governed by the laws under the state of ________________.

SIGNATURES
Contractor’s Signature: _____________________________ Date: __________
Print Name: _____________________________

Client’s Signature: _____________________________ Date: __________
Print Name: _____________________________

Please note that this eforms template is a general structure and should be customized to fit the specific needs and legal requirements of your situation. Always consult with a legal professional when drafting legal agreements.

Disclaimer: This policy template is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor Workable will assume any legal liability that may arise from the use of this policy.