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Consulting Agreement for the United Kingdom

Consulting Agreement Template for England and Wales

A Consulting Agreement governed by English and Welsh law is a legally binding contract that establishes the terms and conditions under which a consultant provides professional services to a client. The agreement details the scope of services, compensation, intellectual property rights, confidentiality obligations, and termination provisions. It ensures compliance with UK legislation including IR35, data protection laws, and employment regulations while protecting both parties' interests through clear definition of rights, obligations, and liabilities.

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Consulting Agreement

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What is a Consulting Agreement?

This Consulting Agreement is designed for use when engaging consultants in England and Wales, whether for short-term projects or ongoing professional services. The agreement comprehensively addresses key aspects of the consulting relationship, including service scope, deliverables, payment terms, and intellectual property rights. It incorporates relevant UK legislative requirements, particularly regarding IR35 status, data protection, and professional liability. This document is essential for establishing clear expectations and protecting both parties' interests in professional consulting arrangements.

What sections should be included in a Consulting Agreement?

1. Parties: Identifies and defines the contracting parties - the consultant and the client

2. Background: Sets out context and purpose of the consulting agreement

3. Definitions: Defines key terms used throughout the agreement including Services, Deliverables, Intellectual Property Rights

4. Services: Detailed description of consulting services to be provided and service standards

5. Fees and Payment: Compensation terms, payment schedule, expenses, and invoicing procedures

6. Term and Termination: Duration of agreement, renewal terms, and circumstances for termination

7. Confidentiality: Protection of confidential information, trade secrets, and business information

8. Intellectual Property: Ownership and licensing of pre-existing and newly created intellectual property

9. Liability and Indemnity: Limitations of liability, indemnification obligations, and insurance requirements

10. General Provisions: Standard boilerplate clauses including notices, assignment, entire agreement, and governing law

What sections are optional to include in a Consulting Agreement?

1. Non-Compete: Restrictions on competitive activities during and after the agreement term

2. Insurance: Specific insurance requirements and coverage levels

3. Data Protection: GDPR compliance and data processing obligations

4. Force Majeure: Provisions for handling unforeseen circumstances and events beyond parties' control

5. Change Control: Procedures for managing changes to services or agreement terms

What schedules should be included in a Consulting Agreement?

1. Schedule 1 - Services Description: Detailed specification of consulting services, deliverables, and timelines

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Service Levels: Performance metrics, quality standards, and reporting requirements

4. Schedule 4 - Key Personnel: Details of key individuals responsible for service delivery

5. Schedule 5 - Policies and Procedures: Relevant client policies and procedures the consultant must comply with

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions






















Clauses
































Industries

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract and affects the inclusion/exclusion of third-party rights clauses

Companies Act 2006: Primary source of UK company law, relevant for verifying company status and authority to enter into consulting agreements

Supply of Goods and Services Act 1982: Sets out implied terms for contracts involving the supply of services, including quality and reasonable care standards

Unfair Contract Terms Act 1977: Regulates clauses that exclude or limit liability, ensuring terms are reasonable and enforceable

Limitation Act 1980: Sets time limits for bringing legal claims, affecting limitation of liability clauses

IR35 Legislation: Tax legislation determining employment status for tax purposes in contractor relationships

Employment Rights Act 1996: Key employment legislation to consider when ensuring consultant status doesn't create unintended employment relationships

Agency Workers Regulations 2010: Regulations governing rights of temporary workers, relevant for distinguishing consultant status

UK GDPR: Data protection legislation governing the processing of personal data in the UK post-Brexit

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Copyright, Designs and Patents Act 1988: Governs intellectual property rights and their assignment or licensing in consulting relationships

Trade Marks Act 1994: Relevant for protecting and handling trademark rights in consulting arrangements

Trade Secrets Regulations 2018: Protects confidential business information and trade secrets, essential for confidentiality clauses

Bribery Act 2010: Anti-corruption legislation affecting compliance clauses and ethical conduct requirements

Competition Act 1998: Ensures consulting agreements don't contain anti-competitive provisions

Enterprise Act 2002: Complements Competition Act in regulating business practices and market conduct

Civil Procedure Rules: Governs court procedures, relevant for dispute resolution clauses

Arbitration Act 1996: Framework for arbitration as an alternative dispute resolution method

Income Tax Act 2007: Tax legislation affecting payment terms and tax-related obligations

Value Added Tax Act 1994: Governs VAT obligations and requirements in consulting arrangements

Money Laundering Regulations 2017: Anti-money laundering requirements affecting payment terms and compliance obligations

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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