Sole Trader Contractor Agreement for the United Kingdom

Sole Trader Contractor Agreement Template for England and Wales

A legally binding agreement governed by the laws of England and Wales, establishing the terms and conditions between a business entity and an independent sole trader contractor. The agreement covers essential aspects including service scope, payment terms, intellectual property rights, confidentiality, and liability provisions while ensuring compliance with relevant UK legislation including IR35 considerations.

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What is a Sole Trader Contractor Agreement?

The Sole Trader Contractor Agreement is designed for situations where a business wishes to engage an independent contractor operating as a sole trader in England and Wales. This document is essential for establishing a clear contractor-client relationship, distinguishing it from employment, and ensuring compliance with UK tax and employment legislation, particularly IR35. It protects both parties by clearly defining services, payment terms, intellectual property rights, and liability while maintaining the contractor's self-employed status.

What sections should be included in a Sole Trader Contractor Agreement?

1. Parties: Identifies the contracting parties and their details

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Services: Describes the services to be provided by the contractor

5. Payment Terms: Details fees, payment schedule, and invoicing requirements

6. Term and Termination: Specifies duration and termination provisions

7. Confidentiality: Protects confidential information

8. Intellectual Property: Addresses ownership and use of IP

What sections are optional to include in a Sole Trader Contractor Agreement?

1. Insurance: Insurance requirements and liability coverage - include when specific insurance requirements are needed

2. Non-Compete: Restrictions on competing activities - include when protecting business interests from competition

3. Equipment Provision: Details about provided equipment or tools - include when equipment is provided by either party

4. Performance Metrics: Specific performance standards - include when measurable outcomes are required

What schedules should be included in a Sole Trader Contractor Agreement?

1. Schedule of Services: Detailed description of services to be provided

2. Rate Card: Detailed breakdown of fees and charges

3. Project Timeline: Specific milestones and deadlines if applicable

4. Insurance Requirements: Detailed insurance specifications if required

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Industries

Employment Rights Act 1996: Key legislation to ensure proper distinction between contractor and employee status, and to avoid creating an unintended employment relationship

IR35 Legislation: Off-Payroll Working Rules that govern tax status classification and address tax and National Insurance implications for contractors

Equality Act 2010: Legislation to prevent discrimination and ensure compliance with equality requirements in the contractual relationship

Health and Safety at Work Act 1974: Addresses safety responsibilities and clarifies liability for workplace safety in contractor relationships

Data Protection Act 2018 and UK GDPR: Governs the handling of personal data and outlines data protection responsibilities between contracting parties

Supply of Goods and Services Act 1982: Sets out service quality standards and basic contractual obligations for service provision

Unfair Contract Terms Act 1977: Ensures contract terms are fair and reasonable, and helps avoid unenforceable clauses in the agreement

Late Payment of Commercial Debts (Interest) Act 1998: Governs payment terms and establishes consequences for late payments in commercial contracts

Companies Act 2006: Provides framework for general contractual capacity and business relationship structures

Bribery Act 2010: Ensures anti-corruption compliance and establishes standards for ethical business conduct in contractual relationships

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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