How To Terminate An Independent Contractor Agreement

Never engage a contractor without a clearly defined written agreement defining the performance of both parties. Add language that streamlines the termination process, including an indication of the conditions that each party can invoke for a “well-founded” unilateral termination. Companies can lay off staff, but no one can “fire” an independent contractor, at least not when it comes to separating a person from employment. Contractors are not employees and are therefore not subject to applicable labour law. However, contractors work under a defined employment contract, i.e. if the contractor`s work is inferior or does not comply with its agreed work product, the contractor may terminate the employment agreement. Most independent contractors rely on their professional reputation and will make reasonable adjustments. Remember that you do not have the right to dictate how a contractor does their job, but only that they do it. Check the terms of the employment contract to identify the procedure for terminating the contractor`s services. Although all contracts are different, most important contracts usually require a correct and timely termination, which will be delivered to an official address.

If you do not properly terminate the contract, you can take legal action. In case of particularly complex problems or situations that are emotionally tense, contact a business lawyer for specific advice. Tip: Remember that an independent contractor is not an employee and is usually not a paid position. If there is a written agreement, one of the first things I ask the client is whether there is a written agreement between the independent contractor and the company. If so, I ask the client to send it to me for legal verification. I carefully evaluate it ed anyone`s “termination” provisions. It is important to describe precisely what the contractor will do. If required by the State or the contract, termination without notice by an independent contractor may not be permitted without certain measures in good faith. Where appropriate, you must give the contractor appropriate opportunities to remedy any deficiencies – and therefore maintain the contractor`s contract. Some employment agreements include (or expressly exclude) options such as a binding arbitration procedure to resolve disputes before either party is able to impose early termination of the contract. Your agreement should explicitly state how and when the independent contractor will be paid. However, if you are used to working with collaborators, think about the adequacy of your expectations when transferring them to independent contractors.

Behavioral controls, for example. B the tools to be used, the order in which the work is to be done or even who is to perform the work, are not applicable in a contractual relationship. Never treat a contractor`s fire lightly. Some sectors, such as construction, allow contractors to file pledges of ownership (“contractor`s pledges”) while a court sorts through the details. These claims can involve the sale of real estate, resulting in significant losses for you. Most independent subcontracting agreements have a confidentiality provision. The key to good privacy is to ensure that both parties know exactly what is covered, so that there are no surprises or accidental disclosures. . .


Comments are closed.