A service agreement is a contract of service between a contractor or a self–employed person and a company or individual. It details what the contractor‘s duties will be including time and place, and salary.
What should a service agreement include?
A service agreement should detail what it is for, what rights and obligations the contractor will have from commencement, the company‘s rights and obligations, the duration of the agreement, how the wages and expenses are organised.
What clauses should a service agreement cover?
The service agreement should usually contain clauses that cover
- commencement of the agreement
- breach of contract
- trade secrets and obligations
- intellectual property agreement
- heath and safety at work
Why is service agreement important?
- The contractor sets out clearly what they will do
- The arrangement is formal and can be subject to scrutiny
- It can minimise expensive and time–consuming litigation
- It may include clauses that limit the company‘s liability