Consultancy Agreement Law

Parties should be aware that advisory agreements cannot be used to conceal another type of relationship. The Supreme Court clarified that written contractual clauses that do not reflect the actual agreement between the parties cannot be taken into account in determining the status of the employment. Although the terms of advisory agreements are important in determining the volume of consulting firms, it will not be possible to insert terms (for example. B substitution clauses) that do not accurately reflect the functioning of relationships in practice in an attempt to deny the status of employment. The agreement may contain a statement excluding the advisor from employment status. Although the provisions of the advisory agreements do not determine the status of the employment, it is useful to demonstrate on the face of it the intentions of the parties. The structure of the service company presents a potential disadvantage for the client company, which has no direct contractual relationship with the individual. A direct link may be important for the application of important conditions of advisory contracts, such as confidentiality and intellectual property provisions. A response letter is a possible solution to this problem.

The use of service companies has increased because it has a number of benefits for those who work under the agreement: they can limit their liability and, if properly structured, receive more tax-efficient counselling fees (for example. B as dividend). The compensation provisions in the consulting contracts may include all losses incurred by the client as a result of: It is customary that the advice agreements provide that the advisor must pay his own tax and the NIC (and, if necessary, VAT) on the consulting fee. When you assign individuals or other businesses to provide a service, you may need a consulting agreement. Advice agreements are common when a company appoints an independent person to do a project, activity, service or task for you. Consultants are not considered employees and have far fewer rights than they can assert against your company. If we can be helpful in developing agreements or for employee/advisor status, please contact us by clicking on the button below. We will ensure that the agreement covers everything necessary to ensure that you are safe, such as the definition of the contractor`s employment status. B the termination of the agreement, the definition of the services to be provided and the protection of your company if the advisor wishes to appoint a substitute for the work. Our lawyers have extensive experience advising on use consulting contracts where the consultant is active both locally and internationally, including complex projects. The relationship between the client and the advisor is simply contractual.

It is less subject to legal provisions than employment contracts, which provides greater flexibility for consulting contracts. There are a number of key clauses contained in most advisory agreements, as well as clauses that will benefit either party. Unlike staff, consultants are generally not tacitly bound to confidentiality. It is therefore important to include explicit confidentiality provisions in advisory agreements. Clients should consider whether to include in their consulting contracts a clause that provides consultants with adequate insurance. 5.3 Each party accepts that, in the absence of the other party`s explicit written agreement, it does not use the other party`s confidential information for any purpose or transmit it to third parties.