An independent contractor agreement is neeeded when specialised services are provided which cannot be performed by a regular employee of the company. Unlike an employee, an independent contractor does not work regularly for an employer, but works as and when required. Therefore, the independent contractor agreement affirms that the client (a person or company that is paid by another company to work on a particular task or project for a particular fee) and the contractor are not in an employer-employee relationship.
An independent contractor agreement usually contains information about the duration and place of the engagement and the payment. Non-competition (or restraint of trade) and confidentiality (or non-disclosure) clauses are also important parts of these documents. The law stipulates that the rights intellectual property created by an independent contractor will belong to the contractor, unless there is a contract or agreement that says otherwise.
KEY VOCABULARY
to affirm
client
confidentiality
contractor
duration
employer
engagement
independent contractor agreement
intellectual property
non-competition
non-disclosure
performed
regular employee
restraint of trade
