Why do you need to sign an Independent Contractor Agreement?

An Independent Contractor Agreement is a very important part of any contract agreement. It’s a written agreement that clearly defines the roles and responsibilities of your professional relationship. So, whether you are an independent contractor or you plan to use one, there is a need to have an independent contractor agreement signed.

Some reasons to sign independent contractor agreement include:

Worker Clarification: An independent contractor agreement helps to clarify contractor role in your organisation. As an employer, incorrectly classifying an employee may have significant tax implications for your business. Therefore, if you a worker is an independent contractor, clearly defines them as such in your agreement.

Deadlines: Since deadlines cause serious problems between employers and independent contractors, employers can use the independent contractor agreement to state the expected deadline for production and the penalties for failing to deliver on time.

Responsibilities: Signing an independent contractor agreement simply means both parties have agreed on the exact nature of the work to be completed. You can use it to define materials to be used, expenses, workspace, development, delivery and any other details of the work.

Payment: The independent contractor agreement can also carry the payment method and amount for the work to be completed.

Therefore, it can be said that signing an independent contractor agreement for contractors in Australia is a must for any employee as it helps to keep things organized. This agreement also helps to differentiate the roles of the contractor and that of your workers.