| The independent contractor agreement is meant to | | | | merger takes place |
| define the essential elements of a contractor | | | | * Successor and assigns |
| relationship, which should include clearly specifying the | | | | * Specify which laws to choose |
| contract worker's responsibilities and duties. In case a | | | | * How to deal with arbitration |
| worker is classified as "employee" and not an | | | | * Waivers, assignments, and notices |
| "independent contractor" the company will be liable for | | | | * How to amend contract provisions |
| paying extra taxes, keeping records up to date, and | | | | * How the contract will be enforced |
| meeting with the safety requirements. This type of | | | | In addition, these agreements shall also name the |
| independent arrangement is a viable option that | | | | parties to the agreement and put a period of time to |
| prevents such extra obligations by showing that the | | | | the agreement. According to the agreement, as |
| contractor relationship exists and is valid for the | | | | agreed to by both parties, the company will engage |
| particular instance. | | | | the services of the contractor as an independent |
| It is essential that the independent contractor | | | | contractor to perform services as outlined and that the |
| agreement specifies the relationship between the | | | | contractor accepts such an engagement. In case the |
| company and the contractor in great detail. This may | | | | document is to be amended it will require the written |
| also involve consulting the laws of the state in which | | | | signatures of both parties for it to be valid and take |
| these activities take place. There are a number of | | | | effect. |
| areas that need to be in every good agreement and | | | | Once in effect, the agreement shall constitute the |
| these are: | | | | entire agreement and any or all prior agreements shall |
| * The duties, compensation and terms of the contract | | | | stand terminated and be cancelled and have no legal |
| * Statement regarding which reports are required | | | | standing. After the independent contractor agreement |
| * What and how are out-of-pocket expenses to be | | | | has been signed by both parties and been witnessed it |
| dealt with | | | | will become binding on both parties. |
| * Specifying that the status is of independent | | | | Such an important document will need expert advice |
| contractor and not of an employee | | | | from lawyers and experts when drafting, and thus |
| * Provisions pertaining to the termination of the | | | | entail a fair amount of cost, which can easily be offset |
| relationship, which in this instance is of independent | | | | if one purchases a pre-defined contract, which is |
| contractor and not of an employee | | | | readily available on the market. Saving money, time |
| * Maintain confidentiality | | | | and effort, such a document will be ready to use and |
| * Specify inventions, improvements and innovations | | | | will contain all of the points that need to be covered by |
| created by contractor while serving out the agreement | | | | a professional document. There is no sense in |
| * Manage conflicts of interest | | | | reinventing the wheel when the wheel is already |
| * Specify non-hiring provisions | | | | spinning and all it needs is simply entering the relevant |
| * Specify right to injunction | | | | information. It is also easy to tailor to suit individual |
| * What would be the status of the contract if a | | | | needs. |