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Independent Contractor Engagement Letter Template for Singapore

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Key Requirements PROMPT example:

Independent Contractor Engagement Letter

"I need an Independent Contractor Engagement Letter under Singapore law for a software developer who will work on our mobile app project for 6 months starting January 2025, with specific IP provisions for code ownership and strict confidentiality requirements."

What is a Independent Contractor Engagement Letter?

The Independent Contractor Engagement Letter is essential for businesses in Singapore seeking to formally engage professional services without creating an employer-employee relationship. This document is crucial for compliance with Singapore's regulatory framework, particularly in distinguishing contractor status from employment relationships. It typically includes comprehensive details about service scope, payment terms, intellectual property rights, and confidentiality obligations, while ensuring alignment with Singapore's Income Tax Act and other relevant legislation.

What sections should be included in a Independent Contractor Engagement Letter?

1. Engagement Details: Outlines the nature of engagement, scope of services, and duration of the contract

2. Compensation Terms: Details of fee structure, payment schedule, and expense reimbursement policies

3. Independent Contractor Status: Clear statement establishing independent contractor relationship and distinction from employment

4. Confidentiality Obligations: Terms regarding protection and non-disclosure of confidential information

5. Termination Provisions: Conditions and procedures for terminating the engagement

What sections are optional to include in a Independent Contractor Engagement Letter?

1. Intellectual Property Rights: Section covering ownership of created works and IP assignments, included when contractor will create intellectual property

2. Non-Compete Provisions: Competitive restrictions and limitations, included when protecting business interests is crucial

3. Insurance Requirements: Details of required insurance coverage, included when services involve specific risks

4. Data Protection Compliance: PDPA compliance requirements, included when contractor will handle personal data

5. Equipment and Resources: Details about provision and use of equipment, included when specific tools or resources are required

What schedules should be included in a Independent Contractor Engagement Letter?

1. Schedule A - Scope of Services: Detailed description of services, deliverables, and performance standards

2. Schedule B - Fee Schedule: Comprehensive breakdown of fees, payment terms, and expense policies

3. Schedule C - Project Timeline: Detailed timeline with key milestones and deadlines for project-based engagements

4. Schedule D - Compliance Requirements: Specific regulatory or industry compliance requirements applicable to the services

Authors

Alex Denne

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

Relevant legal definitions

























Clauses






























Industries

Employment Act (Cap. 91): Key legislation to reference for establishing clear differentiation between contractor and employee status. While contractors are not covered, the terms must clearly distinguish the relationship from employment to prevent misclassification.

Income Tax Act: Governs tax obligations including withholding tax for services and GST registration requirements (if contractor's annual turnover exceeds SGD 1 million).

Central Provident Fund (CPF) Act: Relevant for explicitly stating non-applicability of CPF contributions due to contractor status rather than employee status.

Personal Data Protection Act 2012 (PDPA): Covers data protection obligations and confidentiality requirements, particularly important if contractor will handle personal data.

Work Injury Compensation Act: Needs to be referenced to clarify non-applicability to independent contractors and address insurance requirements.

Contract Law (Common Law principles): Fundamental legal framework governing contract formation, including essential elements like scope of services, payment terms, duration, termination, and IP rights.

Competition Act: Relevant for non-compete clauses and restrictive covenants, ensuring compliance with competition laws.

Skills Development Levy Act: To be referenced for clarifying non-applicability as this applies to employees only.

Workplace Safety and Health Act: Addresses safety obligations and requirements relevant to the services being provided.

Copyright Act: Governs ownership of created works and intellectual property assignments in the contractor relationship.

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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