Independent Contractor Agreement Template Template

INDEPENDENT CONTRACTOR AGREEMENT This Agreement is made on [Start Date] between: PRINCIPAL: [Principal Name (the engager)] (ABN [Principal ABN]) ("the Principal") CONTRACTOR: [Contractor Name] (ABN [Contractor ABN]) ("the Contractor") 1. NATURE OF RELATIONSHIP The parties confirm that the Contractor is engaged as an independent contractor and not as an employee of the Principal. The Contractor: (a) controls how and when work is done, subject to reasonable scope and deadline requirements; (b) provides their own tools and materials except where expressly agreed; (c) bears the commercial risk of the work and may make a profit or loss on each engagement; (d) is responsible for their own income tax, GST, and superannuation arrangements; (e) may delegate or subcontract the work, subject to Principal approval where reasonable. 2. SCOPE OF WORK The Contractor will provide the following services: [Scope of Work]. 3. FEES AND INVOICING The Principal shall pay the Contractor [Fees] for the services. The Contractor shall issue tax invoices in accordance with the GST Act and the Principal shall pay each invoice within 14 days of receipt unless otherwise agreed. 4. SUPERANNUATION The Contractor is responsible for their own superannuation. The parties acknowledge that under section 12(3) of the Superannuation Guarantee (Administration) Act 1992, certain contracts that are wholly or principally for the labour of an individual may attract employer superannuation contributions. Where this provision applies, the Principal shall pay the relevant superannuation guarantee amount in addition to the fees in clause 3. 5. INTELLECTUAL PROPERTY All intellectual property created by the Contractor in performing the services is assigned to the Principal on payment of the relevant fee, unless otherwise agreed in writing. 6. CONFIDENTIALITY The Contractor shall keep confidential all non-public information of the Principal and its customers, both during and for two years after the term. 7. TERM AND TERMINATION The agreement runs for [Term] unless terminated earlier. Either party may terminate by giving 14 days' written notice. The Principal may terminate immediately for material breach. 8. INSURANCE The Contractor warrants they hold appropriate public liability and professional indemnity insurance for the services. Evidence may be requested. 9. NO EMPLOYMENT BENEFITS The Contractor is not entitled to leave, notice of termination beyond clause 7, redundancy, or any other employee entitlements under the Fair Work Act 2009 or the National Employment Standards. 10. SHAM CONTRACTING The parties acknowledge that the Fair Work Act 2009 prohibits sham contracting (s357-359). The Principal warrants that the relationship is genuinely a contractor relationship and not employment dressed up as a contract. SIGNED by [Principal Name (the engager)]: ____________________________________ Date: ________________ SIGNED by [Contractor Name]: ____________________________________ Date: ________________ Note: From 26 August 2024, sections 15AA-15AB of the Fair Work Act apply a new test for distinguishing employees from contractors based on the real substance, practical reality and true nature of the relationship. A worker may be re-characterised as an employee even where the contract says otherwise. Consider whether your worker is genuinely independent before relying on this template.