A service agreement can be used to both engage a contractor or, if you are a contractor, you can use this agreement to be engaged to do work for a business or individual.
A service agreement may be used for a single job, a recurring job or the continual provision of a service. The type of service that is provided for in the contract is limitless. You can use a service agreement to engage contractors to do a range of services for you from cleaning, gardening, IT computer support, office assistance to providing services temporarily for your business at busy times such as end of year audit, filing and preparation of your financial reports or if an employee is absent on for a long period and needs to be temporarily replaced.
A service agreement should contain an understanding between the parties of the expectation of the services, level of service, outcomes and milestones related to the service to be provided. In addition, there should be a clear understanding of the relationship between contractor and person engaging the service. It is important that this relationship is not considered to be one of employment but rather remain that of a contractor or service provider and having a service agreement in place will ensure that this is clear. Otherwise, there are numerous legal requirements that are triggered including superannuation and holiday pay requirements.
It is also important to ensure you have an agreement in place for things such as ensuring your contractor or service provider is under a duty of confidentiality to keep things private such as client lists, your financial affairs and your business processes which may be secret. In addition, you should ensure that you own any work you engage them to do, for example, if you have engaged someone to do artwork, advertising, software development or marketing of a product or website for you, you need to ensure through your service agreement, that you obtain ownership in the intellectual property in this work after they complete it.
Using a service agreement ensures you and your business are protected and is a professional method to hire a service provider to assist you. In the event you have an issue and do not want to continue the relationship or work with the service provider, by having a service agreement in place it ensures you have an agreed method for termination and any dispute that may arise as a result. In addition, the use of such an agreement minimizes misunderstandings and clarifies both your relationship and expectations. This will ensure a better working relationship as well as minimizing any business or service risk.
Want to know more? Click here for Free information on Service Agreement. Australian legal agreements and forms from http://www.legal123.com.au/.
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