Contract for services: self employed contractors
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- Guidance notes included
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About this document
For thousands of self employed people this document will be presented to a new client as “my contract”. For any business using self employed people it provides the essential starting point for the relationship.
Although the agreement clothes the transaction with all the characteristics of self employment, simply using one of these contracts will not necessarily avoid the relationship of employer and employed. Both the Inland Revenue and any industrial tribunal will be entitled to look behind the agreement at the reality of the contract. Some of the questions they might ask are:
- Is this the contractors only work or does he work for others too?
- Does the client control how the work is done?
- Are the hours fixed by the client or can the contractor choose when he works?
- Does the contractor work on the clients premises, using the client's equipment?
- To what extent is the contractor at risk as a self employed person?
- Is self employment normal for this kind of work?
This contract for services document is suitable for
- A self employed person, in any field, who does not do work which you would describe as “consultancy”. Instead, you may be a gardener, a horse trainer, a builder or a yacht repairer;
- A “client” requiring a contract to set out trading terms with a consultant or self employed person;
- A business using self employed people.
Application and features
- “Over-arching” agreements designed for ongoing use to cover a series of assignments
- Consultant to work from home or office
- Very flexible to suit the requirements of either or both parties
- Provides a complete framework
- Protects both sides
- Reduces the chances for employer obligations to arise
- Obligations of both parties
- Fees and expenses
- Duration and termination
- Matters after termination
- Intellectual property
- Appropriate legal provisions - warranties, exclusions, indemnities
This document was written by a solicitor for Net Lawman. It complies with current New Zealand law.
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