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Consultancy Agreement


A Consultancy Agreement is a contract for services between an independent contractor (a self-employed individual) and the client for the provision of consultancy services.

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This Consultancy Agreement is designed to be used where a consultant provides consultancy services to a client and is drafted on the basis that the consultant is genuinely self-employed and is not an employee or a worker of the client.

 A consultancy arrangement may be an attractive option for both client and consultant, in part because of the tax advantages. However, please note that the fact that an arrangement is structured and documented as a contract for services and not a contract of employment is not conclusive evidence of the relationship between the parties; HMRC and the employment tribunal will look at the substance of the relationship, rather than the legal form or any labels that the parties have given to the relationship.  

This Consultancy Agreement template records the arrangement between the consultant and the client by setting out the framework under which the consultant will provide the services and defining the rights and obligations of the parties.

This Consultancy Agreement includes specific assignment provisions in relation to intellectual property rights where it is agreed that the client will take ownership of the intellectual property created by the consultant during the course of his/her engagement. Generally, in consultancy agreements because the implied duties owed by an employee to an employer do not apply in the case of consultants, intellectual property rights arising as a result of services provided under a consultancy agreement will normally belong to the consultant. On the other hand, the intellectual property in material created by an employee during the course of his/her employment belongs by law to the employer. However, this Consultancy Agreement contains clauses stating that all intellectual property created by the consultant during the course of his/her work for the client belongs to the client.

This Consultancy Agreement template is fully comprehensive, it provides a complete framework and reduces the chances for employment-related liabilities to arise. It is flexible to suit the requirements of both parties in that it gives the option to determine if the consultancy services are delivered at the client's premises or from the consultant's own offices and the period of engagement can be either fixed or ongoing. This Agreement is also balanced in that it is designed to protect the interests of both parties. This Consultancy Agreement template is suitable for use where the consultant and the client are either companies or individuals and contains clauses allowing the parties to decide whether a substitute can be appointed for the consultant.

 Please note that when issuing a consultancy agreement to a former employee, the client should try to make the terms as different as possible to the terms of the previous employment contract, as if the nature of the work is similar to that previously carried out on an employment basis, the consultancy arrangement may be deemed to be a continuation of the employment relationship.

The Consultancy Agreement contains the following clauses:

  1. Definitions and Interpretation
  2. Appointment
  3. Duties
  4. Fees and Invoicing
  5. Expenses
  6. Other Activities
  7. Confidential Information
  8. Data Protection
  9. Intellectual Property
  10. Insurance
  11. Termination
  12. Obligations on Termination
  13. Relationship
  14. Notices
  15. Force Majeure
  16. Entire Agreement
  17. Survivorship
  18. Variation
  19. Third Party Rights
  20. Waiver
  21. Severance
  22. Governing Law and Jurisdiction


This Consultancy Agreement is in Microsoft Word format, written in plain English, easy to use and edit.

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