Independent contractor agreement template for England and Wales
A independent contractor agreement drafted under the law of England and Wales. Below: what it is usually called here, what the legislation says, and the governing-law clause this draft prints.
What is a independent contractor agreement called in England and Wales?
In England and Wales this is usually called a contractor agreement (often a consultancy agreement or contract for services).
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What changes under the law of England and Wales?
In the UK this is usually called a consultancy agreement or contractor agreement rather than an 'independent contractor agreement'. Tax status (including the off-payroll rules) depends on how the work is really done, not on the label; we do not cover tax status here.
In England and Wales, an electronic signature is admissible in evidence on any question about the authenticity or integrity of a communication or data.
Statutory interest on late payment of commercial debts is set by order under the Late Payment of Commercial Debts (Interest) Act 1998; gov.uk states the rate as 8% plus the Bank of England base rate.
An action on a simple contract cannot be brought after six years from when the cause of action accrued; an action on a specialty (such as a deed) has twelve years.
This agreement and any dispute arising out of or in connection with it are governed by the law of England and Wales. The courts of England and Wales have exclusive jurisdiction.
In Plain English: if there is a dispute, the law of England and Wales decides what the contract means, and the named courts hear it. It does not say this is the right choice for you; that depends on where the parties are and what they agree.
The other clauses, in Plain English
Legal wording · example
1Status
The Contractor is an independent contractor. Nothing in this agreement creates an employment relationship, partnership or agency.
In Plain English
The contractor runs their own business; this is not a job. The label helps, but how the work really happens matters more.
Legal wording · example
2Work product
The Contractor assigns to the Company all intellectual property rights in the Work Product on creation, in consideration of the Fees.
In Plain English
What the contractor makes for you belongs to you once it is created and paid for under the agreement.
Can a contractor agreement be signed electronically in England?
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Usually, yes. An electronic signature is admissible in evidence (Electronic Communications Act 2000 s.7), and the Law Commission's 2019 report says it is capable of executing a document where the signer intends to authenticate it. A contractor agreement is commonly a simple contract, not a deed, so no witness is needed.
Can I charge interest if the invoice is paid late?
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Between businesses, statutory interest is available under the Late Payment of Commercial Debts (Interest) Act 1998. gov.uk states the rate as 8% plus the Bank of England base rate. A contract can also set its own rate.
What is a contractor agreement called in the UK?
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Commonly a consultancy agreement, contractor agreement or contract for services. 'Independent contractor agreement' is the usual US name.