The External Consultant Agreement is essential for Australian businesses engaging independent contractors for specialized services or project-based work. This document is designed to comply with Australian federal and state legislation, including the Independent Contractors Act 2006, Fair Work Act 2009, and relevant tax laws. It should be used when engaging consultants who provide professional services while maintaining their independence from the client organization. The agreement covers crucial elements such as service scope, fees, intellectual property rights, confidentiality, insurance requirements, and termination provisions, while carefully establishing a genuine contractor relationship to avoid misclassification risks under Australian law.
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1. Parties: Identifies the contracting parties - the business/client and the consultant (whether individual or entity)
2. Background: Outlines the context of the agreement, including the client's needs and consultant's expertise
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Term: Specifies the engagement terms, commencement date, and duration
5. Services: Details the consulting services to be provided
6. Consultant's Obligations: Lists key responsibilities and performance standards expected from the consultant
7. Client's Obligations: Outlines the client's responsibilities and commitments
8. Fees and Payment: Details consultation fees, payment terms, expenses, and invoicing requirements
9. GST: Addresses GST requirements and obligations
10. Independent Contractor Relationship: Clearly establishes the nature of the relationship as independent contracting, not employment
11. Intellectual Property: Covers ownership and rights to intellectual property created during the engagement
12. Confidentiality: Protects confidential information and trade secrets
13. Insurance and Liability: Specifies required insurance coverage and liability limitations
14. Termination: Details circumstances and processes for ending the agreement
15. General Provisions: Includes standard legal clauses such as governing law, notices, and dispute resolution
1. Non-Compete: Restricts consultant from competing activities - include when protecting market position is crucial
2. Non-Solicitation: Prevents poaching of clients/employees - relevant for consultants with significant client contact
3. Performance Metrics: Defines specific KPIs and performance standards - use when quantifiable outcomes are required
4. Equipment and Resources: Specifies tools and resources provided by either party - include when significant resources are involved
5. Data Protection: Additional privacy and data handling obligations - include when handling sensitive or personal data
6. Change Control: Process for managing changes to services or requirements - useful for long-term or complex engagements
7. Force Majeure: Addresses unforeseen circumstances - particularly relevant post-COVID
8. Subcontracting: Rules regarding use of subcontractors - include when subcontracting might be needed
9. Work Health and Safety: Specific WHS obligations - include when consultant works on-site
10. Moral Rights: Additional IP rights provisions - relevant for creative or content-creation services
1. Schedule 1 - Services Description: Detailed scope of services, deliverables, and specifications
2. Schedule 2 - Fees and Payment Terms: Comprehensive breakdown of fees, rates, and payment conditions
3. Schedule 3 - Key Personnel: Details of main consultant contacts and any approved subcontractors
4. Schedule 4 - Service Levels: Specific performance standards and metrics if applicable
5. Schedule 5 - Insurance Requirements: Detailed insurance obligations and minimum coverage requirements
6. Appendix A - Project Timeline: Milestone dates and project schedule if applicable
7. Appendix B - Approved Expenses: List of pre-approved expenses and reimbursement procedures
8. Appendix C - Client Policies: Relevant client policies the consultant must comply with
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