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Sole Trader Business Services Agreements - Contractor contract - Independent Contractors Agreement

In certain circumstances, businesses find it practical to contract work out to independent contractors rather than hire employees. 

This may the case for one-off projects that achieve a specific result or projects of a limited nature or duration that require persons with specialist skills and expertise. 

A Contractors Agreement is an important document that sets out the rights and obligations of the principal business and the contractor. 

By having a Contractors Agreement in place, the terms and conditions of the relationship can be negotiated and defined up front, spelling out the exact nature of the arrangement.  This will minimise uncertainty and potential disputes in the future. 

This document includes clauses to protect the principal’s business interests while at the same time allowing the Principal to maintain a healthy ongoing relationship with the contractor.

What is the difference between a Contractor and an Employee?

It is important to understand the fine line that can sometimes separate a contractor from actually being an employee.  If you are in doubt, we recommend that you familiarise yourself with the ATO’s ‘Employee or Contractor Decision Tool’ before making this decision.

Factors that point towards a person being an independent contractor are where an independent contractor:-

  • performs the work as an entrepreneur who owns and operates his or her own business;
  • works for the Principal as a representative of the contractors business - not as a representative of the Principal’s business;
  • advertises his or her services to the public;
  • holds his or her own insurances;
  • has the ability to determine the manner in which the work is completed;
  • has the ability to sub-contract the work out to others;
  • has his or her own tools and equipment to perform the work;
  • has the ability to accept or refuse work as it becomes available;
  • is generally paid on a results basis rather than on a time basis;
  • decides what hours to work to get the job done;
  • submits invoices for work completed or is paid at the end of the contract or project.

In contrast, employees perform their work under the direction and control of their employer, and generally on an ongoing basis with standard set work hours (with the exception of casuals).

Sole Trader Contractor Contract Template Download

contractor contract template download


RP Emery & Associates supply the following professionally drafted Contractors Agreements

Contractors Agreement (where the work is being contracted to a Sole Trader)

Contractors Agreement (where the work is being contracted to a Company)

Consultancy Agreement (ideal where the consultant/contractor will be drafting and presenting an Agreement to the principal)

All of our documents are available for immediate download.  Simply follow the link below to purchase the document you require. 

Plus, when you purchase one of RP Emery & Associates professionally drafted templates, you will have access to all later updates of the document.  And you can use the document again and again.  Simply edit the document, save and print!

Contractor Contract Template Download

contractor contract template download


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