template

Consultancy Agreement - Company appointing an individual consultant (not using a personal service company)

by
C
Chris Young
Oct, 10 2023

When to use this template

The Consultancy Agreement is a legal document that outlines the contractual relationship between a company and an individual consultant, who is not engaged through a personal service company, according to the laws of the United Kingdom. This template serves as a comprehensive agreement that defines the terms, rights, and obligations between both parties throughout the consultancy engagement.

The agreement covers various essential aspects, including the scope of work, deliverables, and project timelines. It outlines the consultant's responsibilities, ensuring they provide their professional expertise, experience, and skills to assist the company in achieving specific objectives. The agreement also details the payment terms, such as the agreed upon consultancy fees, expenses, and reimbursement policies.

Additionally, this template typically addresses the consultant's obligations regarding confidentiality and non-disclosure of any proprietary or sensitive information they may gain access to during the engagement. It may include provisions safeguarding the company's intellectual property rights and ensuring that the consultant does not engage in any conflicting activities or compete with the company's business interests.

The Consultancy Agreement also covers important legal aspects that regulate the relationship between both parties. It typically includes clauses regarding termination and the circumstances under which either party can end the agreement. The document may also address dispute resolution mechanisms, indemnification, liability limitations, and any other necessary legal provisions to protect the interests of both the company and the consultant.

In summary, this legal template for a Consultancy Agreement provides a solid foundation for establishing a clear and mutually beneficial working relationship between a company and an individual consultant under the jurisdiction of UK law. By utilizing this template, both parties can define their expectations, protect their rights, and ensure compliance with applicable legal requirements throughout the consultancy engagement.

Key issues covered in this template

  • Consultant/contractor fees
  • IP ownership assigned to company
  • Payment period and method
  • Data protection
  • Term and termination
  • Consultant using a personal service company (PSC)

What to watch out for

  • Companies defined as medium and large sized, as well as public authorities need to comply with IR35 to ensure the consultant should not be treated as an employee. For more information, see: https://www.gov.uk/guidance/understanding-off-payroll-working-ir35.

  • By default, contractors own the IP of their work under UK law. However, this contract assigns the IP of their work to the company hiring them.

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Used by

Author

C

Chris Young

@chris75410632
Genie AI

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Consultancy
26%
Technology
21%
Other
6%
Legal Services
5%
Finance
5%
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4%
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4%
Education
3%
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3%
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3%
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3%
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3%
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2%
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Additional information

Business categories

Business activities

Relevant sectors

Technology

Relevant company sizes

4 - 19

Governing law

England and Wales

Language

English UK

Gender neutral

Yes