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What is a Consultancy Agreement?

A Consultancy Agreement sets out the terms when an independent expert provides professional services to a Swiss company. It differs from an employment contract by establishing a business-to-business relationship where the consultant maintains their independence while delivering specific expertise or project work.

Under Swiss Code of Obligations requirements, these agreements typically outline the scope of services, payment terms, confidentiality obligations, and intellectual property rights. The document helps both parties avoid misclassification risks and clearly defines their professional relationship, timelines, and deliverables - essential protections in Switzerland's service-based economy.

When should you use a Consultancy Agreement?

Use a Consultancy Agreement when bringing in external expertise for specialized projects or temporary business needs in Switzerland. This contract becomes essential for engaging independent professionals who provide services like IT consulting, management advice, or technical expertise while maintaining their autonomy from your organization.

The agreement proves particularly valuable when working with high-value consultants or handling sensitive company information. Swiss law requires clear documentation of business relationships to avoid employment misclassification risks. Having this agreement in place protects intellectual property rights, establishes confidentiality terms, and creates certainty around project scope and payment structures.

What are the different types of Consultancy Agreement?

Who should typically use a Consultancy Agreement?

  • Business Clients: Swiss companies seeking specialized expertise, from startups to large corporations who need external professional services
  • Independent Consultants: Self-employed professionals offering expertise in areas like IT, management, or finance while maintaining their independent status
  • Legal Counsel: In-house or external lawyers who draft and review Consultancy Agreements to ensure compliance with Swiss regulations
  • Project Managers: Oversee the practical implementation of consulting arrangements and ensure deliverables match agreement terms
  • HR Departments: Help distinguish consulting relationships from employment contracts and maintain proper documentation

How do you write a Consultancy Agreement?

  • Basic Details: Gather full legal names, addresses, and company details of both consultant and client
  • Service Scope: Define exact services, deliverables, timelines, and performance metrics
  • Financial Terms: Determine fees, payment schedule, expenses, and Swiss VAT implications
  • Project Timeline: Specify start date, milestones, completion dates, and any renewal options
  • Legal Requirements: Check Swiss Code of Obligations compliance and independent contractor status criteria
  • Intellectual Property: Clarify ownership of work products and any pre-existing IP rights
  • Confidentiality: Identify sensitive information requiring protection and duration of obligations

What should be included in a Consultancy Agreement?

  • Party Details: Full legal names, addresses, and registration numbers of consultant and client
  • Service Description: Detailed scope of work, deliverables, and performance standards
  • Compensation Terms: Fee structure, payment schedule, and expense policies under Swiss law
  • Duration Clause: Contract period, termination conditions, and notice requirements
  • Independence Statement: Clear distinction from employment relationship per Swiss Code of Obligations
  • Confidentiality Terms: Protection of business secrets and data privacy compliance
  • IP Rights: Ownership and transfer of work products and intellectual property
  • Liability Provisions: Risk allocation and insurance requirements under Swiss law

What's the difference between a Consultancy Agreement and a Contractor Agreement?

A Consultancy Agreement differs significantly from a Contractor Agreement in several key aspects under Swiss law. While both involve independent service providers, their scope, application, and legal implications require careful consideration to choose the right document.

  • Expertise Level: Consultants typically provide specialized professional advice or strategic guidance, while contractors often perform specific operational or technical tasks
  • Project Scope: Consultancy work usually involves analysis, recommendations, and knowledge transfer; contractor work focuses on delivering concrete, predefined deliverables
  • Payment Structure: Consultants often charge premium hourly or project-based fees for expertise, while contractors typically work with fixed-price or time-and-materials arrangements
  • Legal Classification: Under Swiss law, consultants maintain greater independence in their work methods and timing, while contractors may face more direct oversight and integration into client operations
  • Liability Framework: Consultants usually carry professional liability insurance and face different risk exposure than contractors, who often need performance bonds or construction-specific coverage

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