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No Employment Contract Template for England and Wales

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Key Requirements PROMPT example:

No Employment Contract

"I need a No Employment Contract for a software developer who will provide remote development services for our fintech project starting March 2025, with specific clauses about code ownership and data protection."

Document background
The No Employment Contract serves as a fundamental document for establishing clear contractor relationships under English and Welsh law. It is essential for businesses engaging independent professionals or companies for specific services while ensuring compliance with IR35 and other relevant legislation. This agreement sets out key terms including service scope, payment structures, and explicitly confirms the contractor's independent status. It's particularly relevant in today's gig economy and increasingly flexible workforce arrangements, where clear definition of non-employment relationships is crucial for both legal and tax purposes.
Suggested Sections

1. Parties: Identifies contracting parties and their legal status

2. Background: Sets out context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Payment Terms: Fees, invoicing, and payment arrangements

6. Term and Termination: Duration and termination provisions

7. Independent Contractor Status: Clear statement of non-employment relationship

8. Confidentiality: Obligations regarding confidential information

9. Liability and Indemnity: Risk allocation between parties

10. General Provisions: Standard boilerplate clauses including governing law

Optional Sections

1. Intellectual Property Rights: Used when services involve creation of IP or creative work

2. Equipment and Materials: Specifies who provides work tools and resources

3. Non-Compete: Restrictions on competitive activities during and after the agreement

4. Insurance: Required insurance coverage for contractor

5. Health and Safety: Compliance with health and safety regulations when work is performed on site

Suggested Schedules

1. Schedule 1 - Services Description: Detailed scope of services and deliverables

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees and payment structure

3. Schedule 3 - Service Levels: Performance metrics and quality standards

4. Schedule 4 - Data Processing Agreement: GDPR compliance terms for personal data processing

Authors

Alex Denne

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

Relevant legal definitions


















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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Employment Rights Act 1996: Primary legislation to establish clear distinction from employment status and ensure the contract properly reflects non-employment relationship

National Minimum Wage Act 1998: Understanding exemptions for genuine contractors while ensuring compliance if relationship could be deemed employment

Working Time Regulations 1998: Relevant for establishing contractor's autonomy over working hours and patterns

Equality Act 2010: Anti-discrimination legislation that may still apply in contractor relationships

Supply of Goods and Services Act 1982: Governs the provision of services and implied terms in service contracts

Companies Act 2006: Relevant when dealing with contractors operating through limited companies

Income Tax (Earnings and Pensions) Act 2003: Contains provisions relevant to tax status and IR35 considerations

IR35 Legislation: Off-payroll working rules determining tax status of contractors

Social Security Contributions and Benefits Act 1992: Relevant for determining NI contributions status of contractors

UK General Data Protection Regulation: Data protection requirements affecting handling of contractor's personal data

Data Protection Act 2018: UK's implementation of data protection requirements including additional provisions

Contract Law Principles: Common law principles covering offer, acceptance, consideration, and intention to create legal relations

Health and Safety at Work Act 1974: Health and safety obligations that may apply to contractors working on premises

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts and limits on liability exclusions

Competition Act 1998: Relevant when including restrictive covenants or non-compete clauses in contractor agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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