This Simple Independent Contractor Agreement is designed for use in South Africa when engaging individual contractors or their personal service companies for specific projects or services. It provides a legally compliant framework that clearly establishes a non-employment relationship while protecting both parties' interests. The agreement includes essential terms covering service scope, payment, intellectual property, and confidentiality, while ensuring compliance with South African legislation including the Labour Relations Act, Income Tax Act, and POPIA. It's particularly suitable for professional services, consulting arrangements, and project-based work where the contractor maintains independence in service delivery. The document helps minimize the risk of contractor misclassification while providing sufficient flexibility to accommodate various service arrangements.
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1. Parties: Identification of the client and the independent contractor, including full legal names, registration numbers (if applicable), and physical addresses
2. Background: Brief context of the agreement and the parties' intention to enter into an independent contractor relationship
3. Definitions: Key terms used throughout the agreement, including 'Services', 'Deliverables', 'Intellectual Property', etc.
4. Appointment and Scope: Formal appointment of the contractor and detailed description of services to be provided
5. Nature of Relationship: Clear statement that this is an independent contractor relationship, not employment
6. Duration: Term of the agreement, including start date and whether fixed-term or indefinite
7. Remuneration: Payment terms, rates, invoicing procedures, and payment schedules
8. Contractor Obligations: Key responsibilities, performance standards, and delivery requirements
9. Client Obligations: Client's responsibilities, including provision of information and resources
10. Intellectual Property: Ownership and rights regarding created works and pre-existing IP
11. Confidentiality: Protection of confidential information and trade secrets
12. Termination: Grounds for termination, notice periods, and consequences of termination
13. General Provisions: Standard legal clauses including notices, governing law, etc.
1. Non-Compete: Restrictions on competing activities - include when contractor will have access to sensitive competitive information
2. Insurance: Insurance requirements - include when services involve higher risk activities or significant liability exposure
3. Data Protection: POPIA compliance obligations - include when personal information will be processed
4. Equipment and Resources: Provisions regarding tools and equipment - include when specific equipment or resources are required
5. Subcontracting: Rights and restrictions regarding subcontracting - include when subcontracting might be necessary
6. Performance Metrics: Specific KPIs and performance standards - include for complex or long-term projects
7. Change Control: Process for changing scope or terms - include for complex or long-term projects
1. Schedule 1 - Scope of Services: Detailed description of services, deliverables, and specifications
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule 3 - Service Levels: Performance standards, metrics, and quality requirements
4. Appendix A - Contact Details: Key contact persons and their details for both parties
5. Appendix B - Required Qualifications: List of required certifications, qualifications, or credentials
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