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THIS INDEPENDENT CONTRACTOR AGREEMENT (the "Agreement") is dated this ________ day of ________________, ________.
IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the Client and the Contractor (individually the "Party" and collectively the "Parties" to this Agreement) agree as follows:
or to such other address as either Party may from time to time notify the other.
IN WITNESS WHEREOF the Parties have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.
Last Updated January 2, 2025
Companies may hire an independent contractor to do a job. The contractor isn’t an employee of the company but works independently. The contractor provides services to the client under an Independent Contractor Agreement.
You can use an Independent Contractor Agreement to hire any kind of contractor, including:
Independent contractors, also known as contractors or contract workers, are self-employed workers that a company or private individual hires. Usually, the client seeks out and contacts a contractor for a job. Some clients might go to an agency to find a suitable contractor. Others follow a similar hiring process as they would for an employee.
After the client chooses a contractor, they should discuss and agree upon the terms of the work, including:
Then, both parties should sign a contract outlining the agreement's details. This will avoid disputes later.
When someone works for a company, they can either be a contractor or an employee, but not both. Because a contractor and an employee are legally different, it’s important to understand them as two separate roles.
In India, the predominant types of employment are:
Depending on the kind of work, an independent contractor might create intellectual property while completing a job for a client. Intellectual property refers to the creations of the mind, such as innovations, artistic creations, designs, and more.
When an employee creates intellectual property for an employer, the property belongs to the employer. In contrast, when an independent contractor creates intellectual property, it depends on the terms of the contract.
However, there are ways to transfer ownership. You can choose to include a clause regarding intellectual property created by a contract worker while completing their work in your Independent Contractor Agreement.
Before creating an Independent Contractor Agreement, both the client and the contractor should discuss the following:
You can create a contract for a single job, a fixed duration of time, or indefinitely if the job is ongoing.
Provide details regarding the independent contractor’s services. Be clear and specific when describing tasks, and indicate any important dates. Make sure to provide the contractor’s name and address, as well as information about the client.
The contractor also has the option of charging the client a retainer fee to secure services. The retainer amount depends on the client's trustworthiness and financial stability, but a reasonable amount is usually 10-50% of the total contract.
Make sure to include the following, if applicable:
LawDepot’s Independent Contractor Agreement template is customised for India. Use our questionnaire to personalise your document to suit your needs.
Contractors are not entitled to any health benefits from their client. Otherwise, the relationship might be classed as employment with further tax and benefits consequences. For many companies, hiring contract workers is beneficial because they have fewer obligations towards those workers. However, even though a company isn’t obligated to provide health insurance for contractors, they can still provide some benefits if they choose, as long as, on balance, the terms of the contract do not amount to an employment relationship.
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