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What is a Consultancy Agreement?
A Consultancy Agreement is a contract by which a company engages a consultant to provide services as an independent contractor.
A person engaged under a Consultancy Agreement is not an employee and does not enjoy statutory rights as an employee.
It is paramount that the wording on the scope of services in the Consultancy Agreement is clear.
Key points included
- Scope of the services that the consultant will provide;
- Commencement date of the services;
- Whether there is a fixed term for providing the services or whether the services will continue until terminated;
- How much the consultant will be paid;
- When or how frequently the consultant will be paid;
- How long the notice period is for terminating the services; and
- Whether the consultant will be restricted from competing with your business and/or soliciting your employees or other service providers, and if so for how long.