The Independent Contractor Offer Letter is used when a company wishes to engage an individual or business entity for professional services without creating an employment relationship. This document is essential in the Canadian business context where proper classification of workers is crucial for tax, labor law, and liability purposes. The letter serves as an initial offer and foundational document that outlines the proposed business relationship, including scope of services, compensation, term of engagement, and key obligations of both parties. It's designed to comply with Canadian federal and provincial regulations while protecting both parties' interests. The document is particularly important given the increasing prevalence of contract work and the need to clearly distinguish independent contractors from employees under Canadian law.
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1. Company Header and Date: Company letterhead, current date, and contractor's contact information
2. Greeting: Professional salutation to the contractor
3. Introduction: Opening paragraph expressing interest in engaging the contractor's services
4. Engagement Terms: Nature of services to be provided and contractor relationship confirmation
5. Project Scope: Detailed description of the work or services to be performed
6. Duration: Term of engagement, including start date and end date if applicable
7. Compensation: Fee structure, payment terms, and invoicing requirements
8. Independent Contractor Status: Clear statement of independent contractor relationship and tax responsibilities
9. Intellectual Property: Ownership of work product and related intellectual property rights
10. Confidentiality: Basic confidentiality obligations
11. Termination: Conditions and process for ending the engagement
12. Acceptance: Signature blocks and acceptance terms
1. Equipment and Resources: Include when contractor needs to use specific equipment or resources, either their own or company-provided
2. Insurance Requirements: Include when specific insurance coverage is required from the contractor
3. Travel and Expenses: Include when the role involves travel or reimbursable expenses
4. Performance Metrics: Include when specific performance standards or metrics need to be met
5. Non-Solicitation: Include when protecting against solicitation of employees or clients is necessary
6. Non-Competition: Include when reasonable competition restrictions are necessary, considering enforceability limitations
7. Compliance Requirements: Include when specific regulatory or industry compliance requirements apply
8. Subcontracting: Include when addressing whether subcontracting is permitted or prohibited
1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and timelines
2. Schedule B - Fee Schedule: Detailed compensation structure, including rates, payment milestones, and any bonus arrangements
3. Schedule C - Company Policies: Relevant company policies that apply to contractors
4. Appendix 1 - Required Insurance Coverage: Specific insurance types and coverage amounts required
5. Appendix 2 - Confidentiality Agreement: Detailed confidentiality terms if more comprehensive than main letter
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