How do I draw up a consultancy contract?

Every consultancy assignment is governed by a contract, which will either be drawn up by you, your agency or your client.
Who draws up the contract?

If you are working through an agency, the contract will normally be drawn up for you by them. If you are working directly for your client and your client has drawn up the contract, you should read the contract carefully and consider whether to have it reviewed by an employment law specialist, to ensure that the terms are not detrimental. If you are working directly for your client and your client has not drawn up the contract, you would be advised to draw up your own contract setting out your terms and conditions.

What goes into the contract?

In considering the wording of your contract, you should keep in mind certain key regulations:

  • IR35. Be clear about whether or not the assignment comes under IR35, and if you are outside of IR35 be careful that the wording of the contract and your working practices do not in any way imply otherwise.
  • Agency Workers Regulations. Assume liability for your own employee rights as both employer and employee of your company, and make it clear that your client is not liable for any of these issues.
  • Employment Agency Regulations. Opt out of these regulations and attach the opt-out agreement to your contract.

View a model contract here.

Amy FowlerHow do I draw up a consultancy contract?