An Independent Contractor Agreement (IC agreement) is a contract between an individual and the company that will be employing them. An IC agreement determines what rights, obligations, and duties each party has in their relationship to one another. The agreement also establishes whether the worker is an employee or independent contractor for tax purposes.

While an IC Agreement does not require legal representation to draft its terms, it is always wise to work with an employment lawyer to make sure you're complying with local labor laws given there are a high volume of employment disputes. Having a well drafted IC agreement will also set your relationship up for success, since the terms of employment will be clearly defined between the company and the contractor.

Key Elements of an Independent Contractor Agreement

1. Identification of the Parties  

The agreement begins by identifying the owner, contractor, and contact information.

2. Scope of Work and Deliverables

The scope of work and deliverables section of the independent contractor agreement outlines the specific tasks and responsibilities of the independent contractor.It should include a detailed description of the work to be done, the timeline for completion, and any milestones that need to be met.It should also include a provision for changes to the scope ofwork and deliverables and how they will be handled.

3. Payment and Compensation

The payment and compensation section of the independent contractor agreement outlines the payment terms, including the amount, frequency, and payment method. It should also include any expenses that will be reimbursed, such as travel expenses or materials. It is essential to clearly define the payment terms and ensure they are fair and reasonable.

Payment should also include the following:

      1. Cancellation fees

      2. Deposits

      3. Discounts

4. Confidentiality and Non-Disclosure

The confidentiality and non-disclosure section of the independent contractor agreement outlines the confidentiality obligations of the independent contractor. It should also state that the contractor must keep all confidential information confidential and not disclose it to third parties. 

5. Intellectual Property Rights

The intellectual property rights outline the ownership of any intellectual property created during the work.
It should state that the business owns all rights, titles, and interests in any intellectual property created.
While also Including a provision that requires the contractor to assign intellectual property rights to the business.

6. Termination and Cancellation

The termination and cancellation section outlines the circumstances under which the agreement can be terminated.
A provision that allows either party to terminate the agreement for any reason upon written notice should be included.
This section should also include a provision that requires the contractor to complete any outstanding work upon termination.