If you are engaging an independent contractor or you are an independent contractor yourself, your relationship should be formalised into an agreement.

Remember, contracts become crucial not when the relationship is going well but when it breaks down.

Here is a line of questions to ask yourself:

1. Does the contract reflect an independent contractor relationship, or does it appear to be an employee/employer
   relationship? Be careful of sham contracting!
2. Does the contract protect my intellectual proprietary rights?
3. What does the contract say about jurisdiction in the event of a dispute?
4. What are my payment terms?
5. If I don’t get paid, can I charge interest? What about my legal fees or mercantile fees if I have to proceed with debt
   recovery against the other party?
6. Is there a personal guarantee?

These questions give you an idea of what to look for.

Below is a case study of a scenario of what can happen if you don’t have an independent contractor’s agreement in place and a dispute arises:

“Company A engaged an independent contractor (the Contractor) to conduct videography and photography services to promote Company A. There was no independent contractor’s agreement in place. The terms of the agreement were agreed to orally and over emails and text messages.  Much to the surprise of the Contractor, Company A used their own photographer on the shoot to take additional footage using the lighting, setup, and design of the Contractor. Further, employees of the Company posted videos and photographs of the Contractors’ equipment, configuration, and products on their social media accounts. Unfortunately for the Contractor, because there was no agreement in place, they had no recourse to protect their intellectual proprietary rights, they could not compel the Company to discard the footage taken or its employees from removing the footage from social media, and the Contractor lost out on payment for additional footage they otherwise may have been entitled to.”

Without an independent contractor agreement, there may be ambiguity or uncertainty regarding the nature of the working relationship, the scope of work, payment terms, and other vital details. This could lead to disputes or legal issues down the line. It is complicated to argue a binding legal obligation when it is not agreed to in writing, not impossible, but difficult and time consuming.

In addition, Queensland has specific laws and regulations that apply to independent contractors, such as the Fair Work Act, Superannuation Guarantee (Administration) Act, and the Workers’ Compensation and Rehabilitation Act. An independent contractor agreement can help ensure that businesses are compliant with these laws and regulations.

Overall, while not a legal requirement, having an independent contractor agreement in Queensland is highly recommended for businesses engaging the services of independent contractors as it provides clarity on the working relationship, protects the business from liability, helps protect the business’s intellectual property, ensures compliance with laws and regulations, and provides a framework for dispute resolution.  The same benefits are extended to the Contractor in protecting the Contractor’s interests.

Here at Van Rooyen Law, we offer the service of checking the terms of your agreements, saving you time, and then advising you whether your existing agreements provide the proper protection for your business needs.

If you do not have existing agreement, it is better to be late in getting them than to not have them at all. So call us for a fixed fee proposal, and we will do all the work for you.