Independent Contractor Agreement (Extensive)

Description

Also known as a consultant or freelancer, an independent contractor is a business or individual that is typically self-employed and provides a product or service for a customer in exchange for monetary compensation. This contract will stipulate the services needing rendering, the time requirements around them, and the compensation expected in exchange.

This Independent Contractor Agreement is a written contract that spells out the terms of the working arrangement between a contractor and client, including:

  • A description of the services provided
  • Terms and length of the project or service
  • Payment details (including deposits, retainers, and other billing details)
  • Confidentiality, non-solicitation, and dispute resolution clauses.

This should not be used as a mechanism to avoid providing de facto employees with rights which they are deserved of under law. Because this mechanism has been abused within South Africa, regulatory authorities are very strict about protecting the employee. Here is a general differentiation:

Independent Contractor

  • May have more than one customer
  • Sends invoices to his or her customers
  • Uses their own tools or equipment
  • Has a personal investment in contracting business and may incur profit and loss as a result
  • Customers have little overview of the work or services being provided
  • Has signed an Independent Contractor Agreement
  • Works on a fixed-term basis
  • May hire employees or subcontractors to help complete services
  • Does not receive employment benefits from clients or customers

Employee

  • Employer controls how the employee's work is carried out, and when and where the employee works
  • Employer controls the employee's wages
  • May receive employment benefits, such as medical, pension, vacation, or sick pay
  • Has signed an Employment Contract
  • May undergo employment reviews
  • Receives in-house training
  • Employer creates his or her job description

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Independent Contractor Agreement (Extensive)

Independent Contractor Agreement (Extensive) Doc
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