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
With a consultancy agreement in place, both parties have a clear understanding of their business relationship from the outset.

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
You’ll receive a professionally drafted consultancy agreement to use between your company and a PSC.

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

What happens after I hire a lawyer?

1. Onboarding

You send your lawyer proof of ID and address and your lawyer checks for conflicts. You send any relevant documentation to your lawyer. Your lawyer send you a client engagement letter to sign and return.

2. Personal Consultation

Choose between a phone, online or face-to-face meeting with your lawyer

3. Draft documentation

Your lawyer sends you a draft version of the document for you to review

4. Revisions and approval

You review the draft, provide comments if necessary, and request revisions. Your lawyer will provide you with another iteration, incorporating your changes as far as possible. Once you’re happy with the document, you approve the final version.

5. Leave a review of your Experience

Leave a review for Legal Drop and your lawyer