0333 014 4568

Business Contracts - Consultancy Agreement

Keeping control of third party contractors

In a flexible employment market, many individuals prefer to offer consultancy services rather than be employed full-time. If you want to use a consultant you’ll need to set out the terms of their service and consolidate the relationship.

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What’s the difference between a consultancy agreement and an Employment Contract?


A consultancy agreement is more flexible than an employment contract in so far as the consultant is obliged to provide the services but is not required to work set hours in a set location, and will typically be considered as self-employed. The relationship between the parties is essentially that of a business contracting with another business.


In an employment contract, however, the level of supervision, control and obligation to the employer is more evident, as well as the employer being placed under a number of obligations derived from the UK’s wide variety of employment legislation.


What to look out for in a consultancy agreement


When entering into a consultancy agreement, we advise our clients to consider the following:

  • The nature of the work being carried out and the associated risks
  • Remuneration and invoicing
  • Warranties
  • Indemnities
  • Confidentiality
  • Suspension
  • Termination


The content of consultancy agreements can vary widely depending on industry sector, and so there is not a universally applicable form of agreement. We would always advise that the consultant and the business in question ensure that the terms of the consultancy agreement adequately reflect the circumstances pertaining to the relationship between the parties. We will be pleased to help with drafting or advising on consultancy agreements to ensure that your needs are met.

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