The Commission Agreement For Independent Contractor is essential when businesses in England and Wales wish to engage individuals on a commission basis while maintaining their independent contractor status. This agreement is particularly important in light of IR35 regulations and the need to clearly distinguish between employment and contractor relationships. It typically includes detailed commission calculations, performance metrics, payment schedules, and compliance requirements. The document helps protect both parties' interests while ensuring clarity in their business relationship and compliance with relevant UK legislation.
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1. Parties: Identifies and defines the contracting parties - the principal and the independent contractor
2. Background: Sets out the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Establishes the contractor's appointment and defines the services to be provided
5. Commission Structure: Details the commission rates, calculation methods, and payment terms
6. Independent Contractor Status: Clearly establishes the relationship as independent contractor, not employment
7. Term and Termination: Specifies duration and termination provisions
8. Obligations of the Parties: Lists key responsibilities of both parties
9. Confidentiality: Protects confidential information and trade secrets
10. Governing Law: Specifies applicable law and jurisdiction
1. Non-Compete: Restricts contractor from competing activities - used when protecting business interests is crucial
2. Insurance: Specifies required insurance coverage - used when services involve significant risks
3. Intellectual Property: Addresses ownership of created works - used when contractor creates IP during service
4. Data Protection: GDPR compliance provisions - used when personal data processing is involved
5. Force Majeure: Provisions for unforeseen circumstances - used when long-term commitment exists
1. Schedule 1 - Services Description: Detailed description of services to be provided
2. Schedule 2 - Commission Rates: Detailed breakdown of commission structure and calculations
3. Schedule 3 - KPIs: Performance indicators and targets
4. Schedule 4 - Territories: Geographical areas covered by the agreement
5. Appendix A - Reporting Requirements: Templates and procedures for activity reporting
6. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements
Relevant legal definitions
Clauses
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