Independent Contractors

The purpose of an independent contractor agreement is to clearly set out and protect the contracting relationship. It creates an instrument that can be referred to and relied upon by the parties if one fails to adhere to their obligations under the contract.

A strong agreement, amongst other terms, should clearly set out the following:

• Pay and expenses structure (such as invoicing methods, payment terms, whether travel expenses will be reimbursed etc);
• detailed description of services including term of the relationship and length of any projects;
• intellectual property (ownership and licensing); and
• termination clause setting out the circumstances in which both parties can terminate the agreement.

Contractor agreements should be updated as frequently as the nature of the contractor’s work/duties being performed change or whenever the structure/circumstances of pay/expenses and other key terms of the agreement change.

The parties should ensure any proposed changes to the agreement are mutually agreed upon and signed by both parties before any changes take effect.