The External Consultant Agreement is essential for businesses operating in England and Wales that engage independent professionals for specific projects or ongoing advisory services. This document establishes clear boundaries between employment and consultancy, addressing IR35 considerations while protecting both parties' interests through detailed terms covering services, compensation, intellectual property, confidentiality, and compliance requirements. It's particularly crucial in today's growing gig economy and increasing reliance on specialist external expertise.
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1. Parties: Identification of contracting parties, including full legal names and addresses
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of consulting services to be provided
5. Term and Termination: Duration of agreement and termination provisions
6. Fees and Payment Terms: Compensation, invoicing, and payment details
7. Consultant Status: Clear statement of independent contractor status
8. Confidentiality: Protection of confidential information
9. Intellectual Property: Ownership and rights to work product
10. Data Protection: GDPR and data protection compliance
1. Non-Compete: Restrictions on competitive activities - include when protecting business interests from competition
2. Non-Solicitation: Restrictions on soliciting clients/employees - include when protecting client relationships and workforce
3. Insurance: Required insurance coverage - include when consultant needs specific insurance coverage
4. Equipment and Resources: Provision of tools and resources - include when specific equipment/resources are provided
5. Performance Metrics: KPIs and performance standards - include when specific performance measures are required
1. Schedule 1 - Services Description: Detailed scope of services and deliverables
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees and payment structure
3. Schedule 3 - Service Levels: Performance standards and metrics if applicable
4. Appendix A - Data Processing Agreement: Detailed data protection obligations if handling personal data
5. Appendix B - Required Insurance: Insurance requirements and minimum coverage levels
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