WHAT IS A CONSULTANCY AGREEMENT?

A consultancy agreement is a legally binding written contract between a company that allows it to obtain the expert consultant services of a person or individual.

WHEN DO YOU NEED A CONSULTANCY AGREEMENT?

A written consultancy agreement should be entered into each time accompany employs the services of a consultant.

The consultant agreement sets the terms and conditions by which both parties are bound and provides protection and reassurance to both the company and the consultant.

WHAT SHOULD BE INCLUDED IN A CONSULTANCY AGREEMENT?

A consultancy agreement should contain the following:

• Specific time frames for the completion of the work.

• Time and manner of compensation.

• Requirements that the consultant provide his or her own indemnity insurance for his or her profession.

• The duration of the consultancy.

• Termination and or dismissal of the consultant.

• Restrictive covenants, non-disclosure and non-compete clauses.

• Instructions on how the consultant’s out of pocket expenses should be handled i.e. whether he or she must obtain prior approval for these expenses and if there is a limit as to the amount and frequency of the expenses.