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Service or Consultants Agreements and Resources in Australia

What is a Service Agreement?

A Service Agreement is a document that formally establishes the relationship between the person or organisation providing the service and the organisation engaging the services of the service provider.

NB: On this page, we may use the term “consultant” interchangeably with that of the “service provider”.

Service agreements may use different names to describe the type of service provided, but ultimately, they serve the same purpose. Some contracts are drafted in favour of the service provider and others from the point of view of the hirer.

Learn: Working as, or hiring, a consultant: what you need to know.

Types of Service Contracts?

There are many different types of service contracts. You can have:

  • management services agreements;
  • marketing service agreements;
  • professional service agreements;
  • technical services agreements; and
  • consultancy services agreements.

How to write or draft a service agreement contract or agreement for services?

The easiest way to write a service agreement is to use a template customised to your situation. A template will provide all the essential clauses for the service being rendered. You can consider each clause, add information as needed and tailor the document to your situation. That's how lawyers do it!

How to terminate a service agreement?

Your service agreement will usually outline the process for termination so all you need to do is follow the guidelines in that document.

For example, the following clauses outline how this might done:-

"Either party may terminate this agreement after giving the other party 30 days notice in writing without being required to give any reason. On Termination of this agreement, unless otherwise agreed in writing:
A             the client must:

  1. pay the outstanding balance of all properly submitted invoices delivered prior to the notice, and
  2. pay the service provider for all services reasonably undertaken and any reimbursable expenses, including those shown in the Schedule E3,
  3. expenses reasonably incurred by the service Provider since the delivery of the notice,

B     the Service Provider must, on receipt of payment, issue to the client a copy of The Design as it exists up to the date of termination."

Consultants or Consultancy Services Agreement Template

Consultants AgreementThis Consulting Service Agreement Template defines the terms and conditions under which you are providing your specialist services to a client. Drafted in favour of the consultant providing the services, this document will afford you strong legal protection should a misunderstanding arise.

A consultants agreement formally establishes the relationship between you and your client. It removes any ambiguity regarding the nature and status of the consultancy relationship. Both parties know that the relationship exists and the consulting agreement makes it formal and legal.

 

Sole Trader Consultancy (contractor) Agreement Template

Sole Trader Agreement TemplateDrafted in favour of the employer hiring the services of a consultant who is a sole trader.

When engaging a contractor it is vital to have a clear understanding of the precise nature of the services to be provided so that each party understands what is expected of them. This reduces misunderstandings and potential areas for conflict.

A contract provides the framework for the relationship, defining clear boundaries and ensuring that each party understands:-

  • what is expected of them and
  • what they are entitled to.

This professionally drafted agreement spells out the exact nature of the arrangement, defining the rights and obligations of the parties. It includes strict restraint, confidentiality and intellectual property provisions to bind the contractor while still providing the foundation for a healthy ongoing relationship.

Incorporated Contractor (consultancy) Agreement Template

Incorporated Contractor AgreementDrafted in favour of the employer hiring the services of a consultant who trades as a incorporated company.

When engaging a contractor it is vital to have a clear understanding of the precise nature of the services to be provided so that each party understands what is expected of them. This reduces misunderstandings and potential areas for conflict.

A contract provides the framework for the relationship, defining clear boundaries and ensuring that each party understands:-

  • what is expected of them and
  • what they are entitled to.

This professionally drafted agreement spells out the exact nature of the arrangement, defining the rights and obligations of the parties. It includes strict restraint, confidentiality and intellectual property provisions to bind the corporate entity and its employees while still providing the foundation for a healthy ongoing relationship.

BEWARE: Sham Contracting

Hiring an employee under the guise of a contractor, is illegal. 

A contractor relationship may be preferred by some employers, due to the perceived benefits to the employer, such as:-

  • the contractor is not subject to an award;
  • there is no annual or other leave payable;
  • tax benefits.

However, it is vital that the contractor is a bona fide contractor under Australian law.  Passing an employee off as a contractor can land an employer in serious trouble, as seen in the case against Jooine Pty Ltd and Mr. Lee.

Learn: Employee or Contractor - How to decide?

Management Services Agreement Template

Management Services Agreement TemplateA management services agreement sets out the relationship between an organisation and an independent contractor appointed to perform the managerial functions of a business, in exchange for a management fee.

This simple strategy has a number of advantages. It

  1. allows the business to separate day to day business activities from the administrative or management activities.
  2. allows the business  to quarantine some of the risks  away from the business owners that may arise in  day-to-day operations, and in doing so doing becomes a practical risk management tool.
  3. may benefit the business to have specialist staff employed by a separate company.

Web Marketing Consultants Service Agreement Template

Web Consultancy Agreement TemplateUse this agreement when you need to hire a specialist independent web marketing consultant or contractor.

This Web Marketing Consultants Agreement Template has been professionally drafted to spell out the exact nature of the arrangement, defining the rights and obligations of the parties.

It includes strict restraint, confidentiality and intellectual property provisions to bind the corporate entity and its employees while still providing the foundation for a healthy ongoing relationship.

Recruitment Agency Agreement template

Recruitment Services AgreementThis Recruitment Agency Agreement is ideal for use by recruitment or employment agencies or where you are in the position of recruiting staff for another firm or business.

The Recruitment Agency Agreement sets out the boundaries and terms of the relationship between you and your client.

It clearly sets out matters such as commission, advertising, promotion of positions and suitability of candidates plus more to help ensure your relationship with your client remains harmonious one.

Learn: About Recruitment Agency Agreements

Referral Agreement Template

Referral Services Agreement TemplateWhether you are providing leads by referring clients to a favoured business or you rely on introductions from others, a referral fee agreement will define how much is paid for the lead and under what circumstances.

Learn: How to draft an effective Referral Services Agreement

Learn: Handling Referrer Arrangements

Other Resources

Don't assume your referral partner knows the step to the dance

Referral Partner DanceThere’s no doubt that using referrals to grow your business can significantly boost your brand and income. By creating and maintaining strong referral networks, you’ll gain an invaluable source of advertising that just keeps on giving! Due caution needs to be taken, though, and you should never assume that your referral partner knows the ‘steps to the dance’ and has the same quality performance standards as you do.