This Hourly Independent Contractor Agreement is designed for use in Canadian jurisdictions where a company wishes to engage an independent contractor on an hourly fee basis. The document is specifically structured to establish and maintain a clear independent contractor relationship, distinct from employment, in compliance with Canadian federal and provincial laws. It is particularly suitable for situations where services are provided on an ongoing but flexible basis, with payment calculated by time spent rather than fixed deliverables. The agreement includes comprehensive provisions covering service scope, payment terms, contractor obligations, intellectual property rights, and confidentiality, while incorporating necessary protections for both parties. This document should be used when engaging individual professionals or their corporations for services where the work hours may vary and where maintaining clear independent contractor status is crucial for tax and employment law purposes.
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1. Parties: Identifies the contracting company and the independent contractor, including their full legal names and addresses
2. Background: Establishes the context of the agreement and the parties' intention to enter into an independent contractor relationship
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Services: Detailed description of the services to be provided by the contractor
5. Term and Termination: Specifies the duration of the agreement and conditions for termination by either party
6. Compensation and Payment Terms: Details the hourly rate, payment schedule, and invoice requirements
7. Independent Contractor Status: Explicitly establishes the nature of the relationship and distinguishes it from employment
8. Contractor's Obligations: Outlines the contractor's responsibilities, including quality of work and professional conduct
9. Company's Obligations: Specifies the company's responsibilities in supporting the contractor's work
10. Intellectual Property Rights: Addresses ownership and rights to work product created during the engagement
11. Confidentiality: Protects confidential information shared during the course of the engagement
12. Representations and Warranties: States the parties' assertions about their capacity and authority to enter the agreement
13. Insurance and Liability: Specifies required insurance coverage and allocation of risks
14. General Provisions: Standard contract clauses including governing law, amendment process, and severability
1. Non-Competition: Restricts the contractor from competing with the company - include only if necessary and ensure compliance with Canadian competition law
2. Non-Solicitation: Prevents the contractor from soliciting company employees or clients - include when contractor has significant client contact
3. Equipment and Resources: Specifies who provides necessary equipment and resources - include when there are specific equipment requirements
4. Expenses: Details which expenses are reimbursable and the process for approval - include when expense reimbursement is part of the arrangement
5. Performance Metrics: Establishes specific performance standards and evaluation criteria - include for longer-term or complex engagements
6. Subcontracting: Addresses whether and how the contractor may engage subcontractors - include when subcontracting might be relevant
7. Data Protection: Additional provisions for handling personal or sensitive data - include when contractor will handle such data
8. Force Majeure: Addresses unforeseeable circumstances preventing performance - include for longer-term contracts
9. Dispute Resolution: Specifies alternative dispute resolution procedures - include for high-value or complex engagements
1. Schedule A - Services Description: Detailed scope of services, deliverables, and any specific requirements or standards
2. Schedule B - Rate Schedule: Detailed breakdown of hourly rates, including any variations based on type of work or time of service
3. Schedule C - Invoice Template: Standard format for invoices including required information and submission procedures
4. Schedule D - Service Levels: Specific performance metrics, response times, and quality standards if applicable
5. Appendix 1 - Insurance Requirements: Detailed specification of required insurance coverage and limits
6. Appendix 2 - Confidentiality Agreement: Detailed confidentiality provisions if more extensive than main agreement
7. Appendix 3 - Policies and Procedures: Relevant company policies that apply to contractors
Relevant legal definitions
Clauses
Relevant Industries
Technology
Consulting
Professional Services
Healthcare
Education
Creative Industries
Construction
Engineering
Financial Services
Marketing and Advertising
Media and Entertainment
Software Development
Project Management
Business Services
Research and Development
Relevant Teams
Human Resources
Legal
Procurement
Finance
Operations
Project Management Office
Information Technology
Research & Development
Marketing
Business Development
Engineering
Product Development
Relevant Roles
Consultant
Software Developer
Project Manager
Graphic Designer
Business Analyst
Marketing Specialist
Content Writer
IT Specialist
Financial Advisor
Training Specialist
Research Analyst
Technical Writer
UX Designer
Data Scientist
Digital Marketing Specialist
Engineering Consultant
HR Consultant
Management Consultant
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