When to use an independent contractor agreement

Hiring a freelancer or specialist for a project is one of the most common moves for a growing SME. A clear contractor agreement protects both sides and sets expectations before anyone starts work.

Use a written agreement whenever someone is delivering work outside a traditional employment relationship: designers, developers, bookkeepers, marketers, trades, and consultants included. A handshake or email thread is easy to misremember when timelines slip or invoices are disputed.

At minimum, cover scope of work, deliverables, fees and payment timing, who owns the IP, confidentiality, and how either party can end the engagement. If the contractor will access client data or systems, add practical security and privacy expectations.

Be careful with control and exclusivity language. Overly employment-like terms can create risk if the arrangement looks like employment in substance. Keep the relationship commercial: the contractor runs their own business, invoices you, and controls how the work is done within the agreed brief.

If the project is high value, long running, or involves sensitive information, a short legal review of your template, or a custom draft, is worth it. Templates are a strong starting point; they are not a substitute for judgement on unusual deals.