Contractor Agreement (Individual)
The Contractor Agreement (Individual) allows you to hire a contractor that is an individual (ie. not a company).
Last updated October 23, 2025
Suitable for Australia
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What is an independent contractor agreement?
What is an independent contractor agreement?
An independent contractor agreement is a legal contract used when hiring a self-employed individual, not a company, to perform specific work or services for your business.
It sets out the scope of work, payment terms, intellectual property ownership and termination conditions. Unlike an employment agreement, it treats the contractor as running their own business, not as part of yours.
How does a contractor agreement protect my business's intellectual property?
How does a contractor agreement protect my business's intellectual property?
A contractor agreement can include a clause assigning any intellectual property the contractor creates during the engagement to your business.
This helps prevent disputes over copyright and ownership of work produced while the contract is active, since without this clause, contractors generally retain ownership of what they create by default. Make sure the assignment clause is specific about what work it covers.
Do I need a written agreement to hire an independent contractor?
Do I need a written agreement to hire an independent contractor?
Yes, a written contractor agreement is strongly recommended even though it's not always a strict legal requirement.
Without one, you're relying on verbal understanding for payment terms, IP ownership and scope of work, which is far harder to enforce if a dispute arises. A written agreement also helps demonstrate the relationship is genuinely a contracting arrangement, not disguised employment.
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Frequently asked questions
What limitations should I be aware of when hiring a contractor?
keyboard_arrow_upIs a contractor agreement valid across all Australian states and territories?
keyboard_arrow_upCan independent contractors apply to the Fair Work Commission if they think their contract is unfair?
keyboard_arrow_upWhat are the main risks of using an individual contractor?
keyboard_arrow_upWhat is sham contracting, and how does a contractor agreement help avoid it?
keyboard_arrow_upCan I include non-compete or non-solicitation clauses in a contractor agreement?
keyboard_arrow_upHow can a contractor agreement help avoid legal disputes?
keyboard_arrow_upWhat's the difference between a contractor agreement and an employment agreement?
keyboard_arrow_upWhat steps should be taken after signing a contractor agreement?
keyboard_arrow_upHow long does it take to create a contractor agreement?
keyboard_arrow_upHow much does it cost to get a contractor agreement, template versus a lawyer?
keyboard_arrow_upView Sample Contractor Agreement (Individual)
The Legal Risk Score of a Contractor Agreement (Individual) Template is Low
Our legal team have marked this document as low risk considering:
- The agreement places the responsibility of maintaining confidentiality solely on the contractor, which could pose a risk if sensitive information is inadvertently disclosed without proper safeguards from the company's side.
- The contractor is required to handle all legal compliance and associated costs, which might expose them to unforeseen expenses and liabilities if regulatory requirements change or are interpreted differently.
- The document stipulates that the contractor must perform the services personally unless otherwise agreed in writing, limiting the contractor's flexibility to manage their workload and potentially affecting their ability to take on other projects.
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