The Contractor Engagement Letter serves as a crucial document in Singapore's business environment, establishing clear parameters for independent contractor relationships. This document is essential when businesses need to engage external expertise without creating an employer-employee relationship. The letter typically includes detailed service specifications, payment terms, confidentiality requirements, and intellectual property rights, while ensuring compliance with Singapore's regulatory framework. The Contractor Engagement Letter is particularly valuable for protecting both parties' interests and avoiding potential misclassification issues under Singapore employment law.
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1. Letterhead and Date: Company details and date of engagement
2. Contractor Details: Full name, address, and business registration (if applicable)
3. Engagement Purpose: Clear description of services to be provided
4. Term: Duration of engagement and start date
5. Compensation: Payment terms, rates, and invoicing process
6. Independent Contractor Status: Clear statement of contractor relationship and distinction from employment
7. Confidentiality: Basic confidentiality obligations and handling of sensitive information
8. Termination: Notice periods and conditions for termination of the engagement
1. Equipment and Resources: Details of any equipment or resources provided by the company to the contractor
2. Insurance Requirements: Specific insurance coverage requirements for high-risk or regulated services
3. Non-Compete: Competition restrictions and limitations for sensitive or competitive services
4. Background Checks: Required verifications and checks for sensitive or regulated work
1. Schedule A - Scope of Services: Detailed description of services and deliverables to be provided by the contractor
2. Schedule B - Payment Terms: Detailed payment structure, milestones, and rates including invoicing procedures
3. Schedule C - Company Policies: Relevant company policies that the contractor must comply with during the engagement
4. Schedule D - Key Personnel: Details of specific individuals required for service delivery and their qualifications
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