Contractor Agreement (Company)
A Contractor Agreement (Company) allows you to engage a contractor that is a company.
Last updated February 24, 2025
Suitable for Australia
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What is a contractor agreement (company)?
What is a contractor agreement (company)?
A contractor agreement (company) is a legal contract used when engaging a company, rather than an individual, to provide services to your business as an independent contractor.
It covers scope of services, payment, IP ownership, confidentiality and indemnities. Because the contracting party is a company, not a person, it sits outside the employment relationship entirely, with different rules to an individual contractor agreement.
Is a contractor agreement (company) legally binding?
Is a contractor agreement (company) legally binding?
Yes, once an authorised representative of each company signs it with a genuine intention to be bound.
Check who's actually authorised to sign on behalf of the contracting company, since a signature from someone without that authority can leave the agreement's enforceability in question. Once properly signed, its terms, including IP assignment and indemnities, are enforceable the same way as any other commercial contract.
What's the difference between hiring a company contractor and an individual contractor?
What's the difference between hiring a company contractor and an individual contractor?
A company contractor agreement engages a business entity, which handles its own staff, tax and legal compliance, and carries no risk of employee misclassification since a company can't be an employee.
An individual contractor agreement engages a person directly, where misclassification and sham contracting risks genuinely apply. If the contractor operates through their own company, use the company version, not the individual one.
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Frequently asked questions
Can I use this agreement if I want to hire an individual contractor?
keyboard_arrow_upWhat protections does a contractor agreement (company) provide for my business?
keyboard_arrow_upDoes a contractor agreement (company) ensure my business owns any work or IP created?
keyboard_arrow_upDo unfair contract terms laws apply to a contractor agreement (company)?
keyboard_arrow_upWhat are the main risks for the contractor under this agreement?
keyboard_arrow_upWhat's the most common mistake businesses make when engaging a company contractor?
keyboard_arrow_upAre there related documents I might also need?
keyboard_arrow_upHow long should a contractor agreement (company) last?
keyboard_arrow_upHow do you write a contractor agreement for a company?
keyboard_arrow_upWhat steps should I take after both parties sign a contractor agreement (company)?
keyboard_arrow_upHow quickly can I complete and use a contractor agreement (company)?
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keyboard_arrow_upView Sample Contractor Agreement (Company)
The Legal Risk Score of a Contractor Agreement (Company) Template is Low
Our legal team have marked this document as low risk considering:
- The document allows the Contractor to use the Company's facilities and property at their own risk, potentially exposing the Contractor to liability for any damages that occur during use, unless caused by the Company’s actions.
- The Contractor is responsible for the complete financial and legal burden of their employees, including salaries, benefits, and compliance with employment laws, which could be financially and administratively challenging.
- The Contractor must ensure all created intellectual property during the service period is disclosed and automatically becomes the Company’s property, limiting the Contractor's rights to any innovations or developments they might create.
Meet Our Users
Articles about Contractor Agreement (Company)
3 Steps After Completing Your Contractor Agreement
Hiring a contractor for your business? Find out what to do after completing your contractor agreement (individual) in this article.
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Do you use the same contractor on an ongoing basis? Want to know how long they can work for your company? Read here to find out everything you need to know.
Avoid Sham Contracts as an Independent Contractor
Sham contracts are a way that employers deny their workers the rights and obligations they're owed. In this article, we break down how you can avoid these.
Why Do You Need Contracts for Freelance Services?
Freelancers need contracts to ensure their business is successful. Our article breaks down what can go wrong without a contract, and why you need one.
3 Legal Traps When Using Contractors
Different legal issues can arise when hiring contractors. Find out in this guide what they are and how you can avoid them.
An Introduction to Subcontractor Agreements
Have you heard about subcontractor agreements? Find out how contractors pool their skills in together with subcontractor agreements.
Sub-Contractor Agreements: What You Need To Know
Like any contract, a sub-contractor agreement can be complicated. Here are some pointers on what to look out for before you sign anything.
What is an Interim Contract?
Do you plan to work on an interim basis or hire temporary employees? Read this guide to find out what an interim contract is.
What Are My Tax Obligations as a Contractor?
Working as a contractor provides you with the flexibility to run your own business. Find out what your tax obligations as a contractor are.
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