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Employment contracts are essential when hiring employees, including consultants and independent contractors. These contracts require certain elements to protect your business and the employee, so it's important to get it right.
In this guide, we'll show you how to write a professional services employment agreement and where you can find a free template online to help get you started.
A professional services employment agreement is a contract tailored to independent consultants and contractors, as well as employees of companies in the professional services industries. It sets out the terms of employment and the obligations of the employee and employer.
You should use a professional services employment agreement whenever you hire a new independent contractor or consultant. This ensures that their role is clearly defined and your company is protected from liability under employment law.
A professional services agreement differs from a full-time employment agreement as it contains clauses tailored to the specific services provided. Hiring an independent consultant or contractor is typically for a fixed term or project and that is reflected in the contract, whereas a contract for a long-term full-time employee is ongoing.
A professional services agreement sets out the rights and responsibilities of the employer and the employee. It includes details such as the services to be provided, the length of the agreement, confidentiality and ownership of intellectual property.
The clauses contained a professional services employment agreement include:
It is important that an employment agreement for independent contractors and consultants does not include any clauses or language that suggest they are a long-term employee. The law treats independent professional services providers differently to permanent employees for the purposes of tax liability and employee benefits, so the contract must make the distinction.
A written professional services employment contract ensures that the contractor and the employer are clear on the services that will be provided and the terms of the agreement. It is also effective in distinguishing an independent consultant from a long-term employee. This way, the company does not become liable for tax, national insurance or employee benefits such as sick leave or holiday pay. It also protects the company and the contractor if there is a legal dispute over the services provided.
You do not necessarily need a lawyer to write an employment agreement. There are templates available online that you can customise for your specific company needs. However, it is advisable to have an employment lawyer review the agreement to make sure that it complies with employment law and is distinct from a full-time employee contract.
A professional services employment contract should be written in concise language that makes clear the terms of employment for the specific services to be provided. It should include detailed clauses that cover all areas of the employment, from the duration and remuneration to the treatment of intellectual property.
An employment agreement is a detailed contract spanning several pages, so it can be helpful to use a pre-written template that you can customise to your needs rather than writing the entire document from scratch. You can find free templates for a professional services employment agreement on the websites below.
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