Independent Contractor Agreements Can Help Many Businesses
The independent contractor agreement is meant to define the essential elements of
a contractor relationship, which should include clearly specifying the contract worker's responsibilities and duties. In case a worker is classified as "employee" and not an "independent contractor" the company will be liable for paying extra taxes, keeping records up to date, and meeting with the safety requirements. This type of indenpendent arrangement is a viable option that prevents such extra obligations by showing that the contractor relationship exists and is valid for the particular instance.It is essential that the independent contractor agreement specifies the relationship between the company and the contractor in great detail. This may also involve consulting the laws of the state in which these activites take place. There are a number of areas that need to be in every good agreement and these are:
* The duties, compensation and terms of the contract
* Statement regarding which reports are required
* What and how are out-of-pocket expenses to be dealt with
* Specifying that the status is of independent contractor and not of an employee
* Provisions pertaining to the termination of the relationship, which in this instance is of independent contractor and not of an employee
* Maintain confidentiality
* Specify inventions, improvements and innovations created by contractor while serving out the agreement
* Manage conflicts of interest
* Specify non-hiring provisions
* Specify right to injunction
* What would be the status of the contract if a merger takes place
* Successor and assigns
* Specify which laws to choose
* How to deal with arbitration
* Waivers, assignments, and notices
* How to amend contract provisions
* How the contract will be enforced
In addition, these agreements shall also name the parties to the agreement and put a period of time to the agreement. According to the agreement, as agreed to by both parties, the company will engage the services of the contractor as an independent contractor to perform services as outlined and that the contractor accepts such an engagement. In case the document is to be amended it will require the written signatures of both parties for it to be valid and take effect.
Once in effect, the agreement shall constitute the entire agreement and any or all prior agreements shall stand terminated and be cancelled and have no legal standing. After the independent contractor agreement has been signed by both parties and been witnessed it will become binding on both parties.
Such an important document will need expert advice from lawyers and experts when drafting, and thus entail a fair amount of cost, which can easily be offset if one purchases a pre-defined contract, which is readily available on the market. Saving money, time and effort, such a document will be ready to use and will contain all of the points that need to be covered by a professional document. There is no sense in reinventing the wheel when the wheel is already spinning and all it needs is simply entering the relevant information. It is also easy to tailor to suit individual needs.
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