Independent Contractor Agreement

Independent contractor Agreement refers to the agreement entered into by and between two parties wherein one party will render services to the other, not as an employee but as an independent contractor. The services to be rendered by the independent contractor to the other party are actually those kinds of services that are considered as not usually necessary or indispensable to the business operations of the entity or establishment getting its services.

In an independent contractor agreement, the independent contractor is being paid for the services rendered as a third person. There is no employer-employee relationship to speak of between the independent contractor and the business entity since the independent contractor’s services are not usually required in the continuous operation of the business entity hiring its services. The law considers the relationship between the parties as a contracting out arrangement or outsourcing services in contrast to the usual employment arrangement between an employer and an employee.

The most common example of an independent contractor agreement is an agreement to provide janitorial services to a business entity or an agreement to render security services to a business establishment. Under their respective independent contractor agreement, the persons to be deployed by the janitorial or security agency will not be considered the employees of the business entity or establishment requiring their services. Instead, these persons will be considered the employees of the janitorial or security agency.

Hence, the business establishment or entity will not be held liable to the persons deployed to render services as an employer but as an independent contractor. As an independent contractor, the business establishment or entity will only be subsidiary liable to these persons, in case the employer cannot pay or is insolvent to pay the claims of the employees.

Now, are you having a hard time deciding on whether or not to engage the services of an independent contractor? Is the financial condition of your business calls for the execution of an independent contractor agreement instead of hiring employees? To be able to determine the viability of getting an independent contractor in your business establishment, we encourage you to get the legal services of the lawyers in this website. Just call our toll-free hotline and we are always ready to help you 24/7 regarding any of your business establishment concerns.