Consultancy Agreement

Consultancy Agreement for Technology Businesses

Why do you need a Consultancy Agreement?

Sometimes a business wants to hire an individual contractor for the purpose of a project or to solve a particular problem. But you don’t want to bind them into a full employment contract, right? Instead, you use a Consultancy Agreement.

A consultancy agreement is useful when hiring a contractor or consultant, as it formalises the relationship between those involved and avoids any IR35 issues!

What is a Consultancy Agreement?

IR35 and Off-Payroll rules kicked in in April 2021, meaning that employers will be responsible for spotting “disguised employees” (a self-employed individual whose relationship acts as a normal employee).

Therefore, this must be reflected in the wording of a Consultancy Agreement that defines the rules of the contractor’s engagement with a company.

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Consultancy Agreement

Contact us to draft a consultancy agreement that works for your business and requirements. 

 

Key facts

View the contents of a Consultancy Agreement

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Frequently Asked Questions

Lots of information needs to be included in a Consultancy Agreement. The top priority for both parties will be the terms of the engagement (the job), payment, termination, responsibilities and liabilities. View our table of contents or request our 'key facts' below to see the key sections to include.

Whilst it is not a legal requirement, we would strongly advise having an agreement in place. This assists in both providing certainty and transparency for both parties. 

A Consultancy Agreement will either end because a consultant has finished the “job” or delivered the deliverables they were contracted for, or it is terminated by a party. Usually, a party must a give notice period that will be defined in the agreement. The client will be able to terminate the agreement with immediate effect for cases where the consultant has materially breached the contract including fraud, misconduct, or causing the client to lose money.

 

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Used by
  • Managed Services Providers
  • ISV, Software, Apps and IP
  • System Integrators Professional Services Consultancy Partners
  • Hosting Partners
  • Licensing Partners

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