Consultancy or Service Agreement
Need an extra pair of hands in your business, without taking on additional staff? Engaging the services of a consultant may be the answer. A consultant can plug the gap in the skills of your current employees, or act as an extra pair of hands during particularly busy periods. A consultancy agreement is a contract between your company and a consultant for the provision of services. Some consultants deliver their services via a Personal Service Company (PSC). Their PSC is a limited company and the consultant is usually the PSC’s sole employee and director. The important characteristic of a consultancy arrangement is that it does not create an employment relationship. In order to engage a consultant via a PSC, you may also need to prepare a “Status Determination Statement”, and your lawyer will discuss this with you. The consultancy agreement will clarify important issues such as:
- Scope of the consultant’s role and responsibilities
- Undertakings from the individual on behalf of the PSC
- Payment terms
- Duration of the engagement
- Treatment of your confidential information
- Expected deliverables or time commitment
What you will get from this service
A 60 minute consultation with your lawyer to align objectives. You’ll discuss:
- The role you want your consultant to carry out
- Payment terms
- The objectives you want to achieve with the agreement
- The ways in which a consultant could be deemed to be an employee for tax-purposes and the safeguards you need to have in place to avoid creating an employment relationship inadvertently.
- Whether or not you need to complete a Status Determination Statement
- Your specific questions about the agreement
- The key information your lawyer needs from you to begin drafting the agreement
What this service will enable you to do
You will have a formal, legally binding document that regulates the relationship between your business and the consultant. This provides you with:
- Flexibility to engage the contractor as and when you need them, without creating an employment relationship or hiring new staff.
- Clarity on each party’s roles, rights, responsibilities and obligations for the duration of the contract.
- Protection for your confidential information