Independent Contractor Separation Agreement

Independent Contractor Separation Agreement Template for England and Wales

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Key Requirements PROMPT example:

"I need an Independent Contractor Separation Agreement for a software developer contractor who has been working through their limited company for 18 months and will be finishing on March 15, 2025; we need to include strong IP protection clauses and handle the transition of ongoing projects."

Document background

The Independent Contractor Separation Agreement is essential when ending a contractor relationship in England and Wales. It should be used when both parties wish to formally document the termination of services, establish clear terms for separation, and protect their respective interests. The agreement typically includes provisions for final payments, confidentiality, intellectual property rights, and the return of company property. It helps prevent future disputes and ensures compliance with UK contractor legislation, particularly IR35 regulations. This document is distinct from employment termination agreements and specifically addresses the unique aspects of contractor relationships.

Suggested Sections

1. Parties: Identification of the contracting parties including full legal names and addresses

2. Background: Context of the contractor relationship and reason for separation

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date when the contractor relationship ends and its effects

5. Final Payment Terms: Details of final payments, payment schedule, and any outstanding invoices

6. Return of Property: Requirements and timeline for returning company property

7. Confidentiality Obligations: Ongoing confidentiality requirements and handling of sensitive information

8. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement

Optional Sections

1. Non-Compete Provisions: Restrictions on future business activities and competition, typically used when protecting legitimate business interests

2. Intellectual Property Assignment: Transfer of IP rights created during engagement, included when IP was created during the contract period

3. Mutual Release: Mutual waiver of claims between parties, used when both parties want to prevent future claims

4. Cooperation Clause: Agreement to assist with transition and knowledge transfer, included when handover of work is required

5. Tax Indemnity: Provisions regarding tax liabilities and indemnifications, particularly relevant for IR35 considerations

Suggested Schedules

1. Schedule 1 - Outstanding Payments: Detailed breakdown of final payments due including any retained amounts or milestone payments

2. Schedule 2 - Company Property: Comprehensive list of company property to be returned including equipment, documents, and access credentials

3. Schedule 3 - Ongoing Projects: List of projects requiring handover and their current status

4. Schedule 4 - Intellectual Property Register: Detailed list of IP created during engagement and its ownership status

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Technology
Professional Services
Creative Industries
Construction
Healthcare

Relevant Teams

Legal
Human Resources
Finance
Operations
Procurement

Relevant Roles

IT Consultant
Project Manager
Business Analyst
Creative Director
Management Consultant

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Let's create your Independent Contractor Separation Agreement

Authors

Alex Denne

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