What Legal Documents do I need to Hire an Independent Contractor?

Table of Contents

Share at:

Hiring an independent contractors is an affordable way for startups to bring people into their business with specialised skills and expertise. Without proper legal agreements in place, questions can arise about the nature of the relationship between you and the contractors that your business has hired.

When hiring a contractor it is important to know the legal services you will need to ensure that your business is protected. With LawPath you have access to all the legal documents such as an independent contractor agreement and a non-disclosure agreement, that protect your business when hiring independent contractors.

With LawPath’s quick quotes service you can also engage an experienced employment lawyer to clarify the relationships of both your employees and contractors.

Contractor Agreement

As a startup or small business, you may be engaging with companies or individuals to carry out work, rather than extending your limited resources to take on more employees. A contractor agreement, also known as an independent contractor agreement, is a document that your business must have when hiring independent contractors.

The agreement clearly sets out the nature of the services to be performed, the obligations between the parties and provides protection for your intellectual property and confidential information. An independent contractor agreement should also include:

  • Insurance;
  • Termination;
  • Payment and expenses; and any
  • Relevant warranties and indemnities.

This agreement also clarifies that your business is engaging the services of an independent contractor and not an employee, as misclassification can result in a long and costly litigation process.

Non-disclosure Agreement

When you are starting out, protecting your business’s confidential information can be the difference between success and a stolen idea. A non-disclosure agreement is a document that allows your business to safeguard any confidential information, with the parties agreeing to not disclose any information covered by the agreement. Non-disclosure agreements can be one-way and mutual.

Using an NDA ensures that any confidential information you have provided to an independent contractor will not be used by them outside of the workplace or shared with other people and businesses. Before sharing any confidential information, the document must be in writing and signed by all parties.

For more information on non-disclosure agreements check out our guide on the 5 things you should know about NDAs.

Get a free legal document when you sign up to Lawpath

Sign up for one of our legal plans or get started for free today.

Hire an Employment Lawyer

When hiring independent contractors, it is important to engage with an employment lawyer to help you navigate through the intricacies of employment law. Working relationships with independent contractors can be particularly complex requiring legal guidance. An experienced employment lawyer can assist with a range of tasks including reviewing your contractor agreements and non-disclosure agreements, as well as provide legal advice about these relationships.

Final Thoughts

If you are looking to hire contractors for your business, your contractor agreement and non-disclosure agreement must be up-to-date. It also recommended that you get in touch with a lawyer through Lawpath’s quick quote service to have these documents reviewed.

Get on demand legal advice for one low monthly fee.

Sign up to our Legal Advice Plan and access professional legal advice whenever you need it.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

How To Write an Expression of Interest When Filing Tender

New businesses may feel intimidated by the tender process. In this article, you will learn what an expression of interest for tenders is and how to write one.

How to Start Your Own Bookstore

Eager to open your own bookstore but not sure where to start? Here we've set out some steps on how to start your very own bookstore.

How To Start An Automotive Repair Business: Steps to Get You Up and Running

Are you a mechanic who is thinking of branching out and starting your own business? Find out how you can start your own here!

How to Start an Air Conditioning Installation Business: 5 Steps for Success

Interested in starting an air conditioning installation business? Read on for 5 helpful tips to get you started.

How to Start a Window Cleaning Business: The Steps for Success

Want to start your own window cleaning business? Read this article to find out how to break into the industry.

How to Start a Welding Business: 6 Steps to Strengthen Your Idea

Do you want to start a welding business but don't know where to start? Keep reading to kickstart your new welding business.