The Independent Contractor Professional Services Agreement is essential for businesses in India engaging external professionals for specific services while maintaining a clear distinction from employment relationships. This document is particularly relevant in today's growing gig economy and project-based work environment, where companies frequently engage independent professionals for specialized services. The agreement complies with Indian contract law, tax regulations, and intellectual property legislation, providing a comprehensive framework for professional engagements. It includes crucial elements such as scope of work, payment terms, confidentiality provisions, and intellectual property rights transfer, while incorporating necessary safeguards to maintain the independent contractor status under Indian law. This agreement is commonly used for engaging consultants, freelancers, and professional service providers across various industries, ensuring both parties' rights and obligations are clearly defined and protected.
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1. Parties: Identification of the contracting parties - the company/client and the independent contractor
2. Background: Context of the agreement and brief description of the parties' intention to enter into an independent contractor relationship
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of the professional services to be provided by the contractor
5. Term and Termination: Duration of the agreement and conditions for termination by either party
6. Compensation and Payment Terms: Fee structure, payment schedule, expenses, and taxation requirements including GST and TDS
7. Independent Contractor Status: Clear statement of independent contractor relationship and disclaimer of employment relationship
8. Intellectual Property Rights: Ownership and transfer of intellectual property created during the service provision
9. Confidentiality: Protection of confidential information and trade secrets
10. Representations and Warranties: Contractor's confirmations regarding qualifications, permits, and ability to perform services
11. Indemnification: Mutual or one-way indemnification obligations
12. Limitation of Liability: Caps on liability and exclusions of certain types of damages
13. General Provisions: Standard clauses including notices, entire agreement, amendments, governing law, and jurisdiction
1. Non-Compete: Restrictions on contractor's ability to work with competitors (include only if specifically required and ensure compliance with Indian competition laws)
2. Non-Solicitation: Restrictions on soliciting clients or employees (if relevant to the services)
3. Insurance: Requirements for professional liability or other insurance coverage (if needed for high-risk services)
4. Data Protection: Specific obligations regarding personal data handling (if services involve data processing)
5. Force Majeure: Provisions for unforeseen circumstances preventing performance (particularly relevant post-COVID)
6. Compliance with Laws: Specific regulatory compliance requirements (if services are in regulated industries)
7. Equipment and Resources: Provisions regarding tools and resources for service delivery (if specific equipment is required)
8. Performance Metrics: Specific KPIs or service levels (if measurable performance standards are required)
1. Schedule A - Scope of Services: Detailed description of services, deliverables, and timelines
2. Schedule B - Fee Schedule: Detailed breakdown of fees, payment milestones, and expense categories
3. Schedule C - Service Levels: Performance standards and metrics (if applicable)
4. Schedule D - Approved Subcontractors: List of pre-approved subcontractors (if subcontracting is permitted)
5. Appendix 1 - Confidentiality Agreement: Detailed confidentiality terms and requirements
6. Appendix 2 - Compliance Requirements: Specific regulatory or industry compliance requirements
7. Appendix 3 - Required Insurance Coverage: Details of insurance types and coverage amounts required
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