Independent Contractor Agreement Template

An Independent Contractor Agreement is a legally binding contract between a contractor (self-employed) and a client (company or a person). A detailed description of service, payments, and deadlines are some of the main topics that are covered by this type of contract. Independent contractor agreements are usually created by the hiring party.

With our free independent contractor agreement template, you can quickly draft a well-written and legally binding contract that’s easily adjustable for different types of jobs and projects. Add the necessary data and share it with the freelancers to review and sign.

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Independent Contractor Agreement

LifeStance Health Group, Inc.

contract

Independent Contractor Agreement

This Independent Contractor Agreement (this “Agreement”), made and entered into as of (the “Effective Date”), between (“Company”) and (“Contractor”) contains the terms and conditions on which Contractor will provide certain Services (as hereinafter defined) to Company. In consideration of the promises and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows:

Services.

The specific engagement scope, services, and fees are set forth in Exhibit A attached hereto and hereby made a part of this Agreement (“Services”). Time is of the essence in this Agreement. Contractor agrees to devote as much business time as is necessary to properly perform any services hereunder.

Ownership.

All original written material and deliverables produced by Contractor as part of the Services or during the course of Contractor’s performance hereunder shall be the property of Company with all rights to use, reproduce, display, distribute, modify and make derivative works in any form and may be utilized outside of this Agreement by Contractor only with Company’s prior written approval. All work product produced, unless otherwise noted by Contractor in writing, is original and Contractor irrevocably assigns, grants and sells all right, title and interest to such work product, along with all rights to copyright, register for trademark, use, publish and republish in all forms of media, to Company and its assigns.

Term and Termination.

This Agreement will commence on the Effective Date and unless terminated as otherwise provided herein, shall continue until the set forth in Exhibit A. Notwithstanding the foregoing, Contractor may terminate this Agreement at any time, for any or no reason, without penalty, upon written notice to Company. In addition, Company may, in addition to its other rights, terminate this Agreement upon notice if Contractor violates any of Contractor’s obligations under this Agreement or any other agreement between Contractor and the Company or any of its affiliates; provided, however, that any such termination shall require the consent of both of the of the Company and the of the Company. In the event of termination, Company is obligated to pay only for actual Services rendered by Contractor prior to the effective date of termination.

Fees.

Contractor shall be paid for the Services as set forth in Exhibit A. Contractor shall invoice Company as set forth on Exhibit A.

Independent Contractor Relationship.

Contractor and Company expressly agree that, in providing services to Company under this Agreement, Contractor will be an independent contractor and will not be an employee or agent of Company or any of its affiliates. Contractor agrees that Contractor will have no right to make any commitments on behalf of Company or any of its affiliates without the express written consent of an authorized officer of Company. Contractor further agrees that Contractor will provide services hereunder independently and will not receive training or direction from Company or any of its affiliates, other than as to the goals to be achieved through the provision of such services. Contractor is free to accept engagements from others during the term of this Agreement, as long as those engagements do not interfere with Contractor providing services under this Agreement or otherwise violate any of Contractor’s obligations hereunder or under any other agreement between Contractor and Company or any of its affiliates. Contractor warrants that it has and will comply with all regarding business permits, insurance, tax registrations, certificates and licenses that may be required to carry out the services. Contractor is not eligible for, and shall not actively participate in, any employee pension, health, or other benefit plan of Company. Contractor will not earn paid time off or other similar benefits.

Performance of Obligations.

Contractor shall at all times perform Contractor’s obligations hereunder in such a manner as to not cause Company to be in material violation of any .

Confidential Information.

Except as otherwise provided in this Agreement or with the prior written consent of Company, Confidential Information shall remain strictly confidential and secret. It shall not be disclosed to third parties, or utilized, directly or indirectly, by Contractor for his/her own business purposes or for any other purpose. “Confidential Information” includes all Company information provided to Contractor or to which Contractor may have access (including information gathered in connection with the Services), including without limitation, business and financial information of any kind, patient information of any kind, vendor lists, pricing information, business strategies and methods, business projections/forecasts and documents, marketing studies, profits, costs, pricing, advertising copy, business plans and records, trade secrets, technical and non-technical data, business statistics and computer code, whether written or oral, tangible or intangible, whether or not such Confidential Information is designated as being confidential, as well as any deliverables and any other material prepared under this Agreement by Contractor.

Notwithstanding the foregoing, “Confidential Information” shall not include information that

is generally known by or available to the public or which becomes known or available by means other than a breach hereof;

is legally known to Contractor prior to the time Contractor receives such information from Company; or

is legally disclosed to Contractor by an independent third party without restriction on disclosure. Contractor is permitted to deliver a copy of any such information to any person pursuant to an order issued by a court of competent jurisdiction or administrative agency or otherwise as required by applicable law, provided that Company has been given reasonable notice thereof and the opportunity to prevent the disclosure of such information. Contractor acknowledges and agrees that breach of this Section may cause irreparable harm to Company for which recovery of money damages may be inadequate, and Company may be entitled to seek timely injunctive relief to protect its rights under this Section, in addition to any and all other remedies available at law or in equity.

Indemnity.

Contractor agrees to protect, defend, hold harmless and indemnify Company, its directors, officers, employees, affiliates and their respective representatives from and against any and all claims, demands, actions, liabilities, damages, losses, fines, penalties, costs and expenses including reasonable attorneys' fees (collectively the "Claims"), of any kind whatsoever including, without limitation, those relating to actual or alleged death of or injury to persons and damage to property, actually or allegedly, directly or indirectly, arising or resulting from or connected with:

a breach of this Agreement by Contractor;

the Services and/or the omission or commission of any act, lawful or unlawful, by Contractor or his/her agents or employees (including without limitation while proceeding to or from the site of any Services) whether or not such act is within the scope of the agency or employment of such agents or employees;

insurance or tax requirements imposed on Company based upon Contractor's services rendered;

any Claim that any Services, work product or deliverable provided by Contractor infringes upon any patent, trademark, trade secret, copyright or similar proprietary right.

Insurance.

Contractor will procure and maintain during the period of this Agreement and so long as any indemnity survives, such insurance as is reasonably and customary for similarly situated independent contractors.

Assignment.

In the event of any sale or transfer of the assets or stock of Company, Company shall have the right to assign this Agreement and/or its rights hereunder to an acquirer and no consent to assign this Agreement shall be necessary for such assignment to be effective. The sale to any acquirer shall not be conditioned upon the acquirer’s acceptance of or continuation of this Agreement. Contractor may not assign this Agreement, nor subcontract any of Contractor’s obligations hereunder, without the prior written consent of Company.

Miscellaneous.

Entire Agreement. This Agreement and the attached Exhibit shall constitute the entire agreement between the parties and supersede all previous communications and representations whether oral or written, between the parties or any officer or representative of the parties.

Amendments. No amendments or other variation to this Agreement shall be effective unless in writing and signed by an authorized person on behalf of each party.

Governing Law. This Agreement shall in all respects be governed by and construed in accordance with the laws of , except as to its conflicts of laws provisions. The parties hereby consent to the exercise of exclusive jurisdiction by the for any claim hereunder.

Severability. If any provision of this Agreement is determined to be unenforceable or invalid, the remaining provisions of this Agreement shall remain in full force and effect.

Notices. Any notices required under this Agreement shall be in writing. Notices shall be delivered in person or sent by overnight courier or by mail addressed to the addresses as set forth below. Notice shall be effective upon delivery if delivered in person or sent by overnight courier or two days after being mailed, postage prepaid, by certified mail, return receipt requested.

If to Company:


If to Contractor:


No Waiver. The waiver by either party of any breach of this Agreement, or any warranty herein contained, shall not be construed as a waiver of any subsequent breach. Such party's failure to exercise any rights hereunder shall not operate as a waiver of such right.

Survival. Sections 2., 5., 7., 8., 10. and 11. of this Agreement shall survive the termination or expiration of this Agreement for any reason.


Pending


Pending

Exhibit A

Start Date:
End Date:

Services

Fees

per , payable in accordance with the Company’s ordinary accounts payable practices.

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Disclaimer: The original creator, the author of this template, and fynk GmbH are not responsible for any damages or liabilities that may result from using this template. This template should not be considered a substitute for legal advice, and consulting with a legal professional is recommended before use. fynk GmbH, the original creator, and the author do not provide legal advice and will not be held accountable for any legal consequences arising from its use.

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Background Information

Independent Contractor Agreement explained in simple terms

Learn everything there is about Independent Contractor Agreement. What they are, when to use them for and what they should contain.

What Is an Independent Contractor Agreement?

An independent contractor agreement is a legally binding document about a working relationship between a company or individual (the client) and a self-employed worker (the contractor). The main topics that this agreement covers are the scope of work, payment terms, deadlines, and expectations. The contractors are also called “freelancers.”

Unlike the standard employment contracts, in this type of agreement, the freelancer is acting independently. That means they typically have the freedom to work on their own schedule and use preferred tools or methods to do the job. Another thing that sets a contractor apart from an employee is the tax responsibilities, which in this type of agreement, will fall on freelancers.

What Is the Purpose of an Independent Contractor Agreement?

Independent creator agreements have a few important purposes:

1. Clearly defines (limits) the working relationship

There’s almost always a line at the beginning of an independent contractor contract that clearly explains that this relationship is NOT considered an employment contract. Here’s an example:

“This Agreement does not constitute, and will not be construed as constituting, an employment relationship between the Company and Contractor.”

2. Contains clear and detailed description of services

Since most freelancers’ responsibilities are project-based, the description and scope of services and scope of work are often written with a lot of care. This helps both parties to have a better understanding of what is expected to be done by the contractor.

Another important purpose of an independent contractor is to set a financial and legal safety net for both parties. For the freelancer, the agreement emphasizes that he/she acts independently, which affects taxes and legal obligations. For the company, the work is completed as expected, and won’t be held liable for things like employee benefits or taxes.

Which Party Creates The Independent Contractor Agreement?

Typically, the hiring party (employer or business) drafts the independent contractor agreement. This is because the business usually sets the terms of the work, such as the scope, deadlines, and compensation. However, the contractor can negotiate the terms before agreeing to and signing the contract to ensure fairness and clarity.

What Should Be Included in an Independent Contractor Agreement?

  • Scope of work and deliverables: Make sure the agreement is clear about how exactly the final work should look like, or if there are any milestones or deadlines.
  • Compensation and payment terms: This should explain how much the freelancer is getting paid, when they’ll be paid, and how—whether that’s per hour or project.
  • Reimbursement of expenses policies: If the client’s going to cover any of the freelancer’s expenses (like travel or materials), this part should cover what’s eligible and how to submit for reimbursement.
  • Employment benefits and liability exclusion: The freelancer needs to clarify that he/she is not getting any employee benefits (like health insurance), and the company is not responsible for their taxes and legal liabilities.
  • Termination clause: This will outline how either side can end the agreement, how much notice is needed, and what happens if it ends early.
  • Dispute resolution: If there’s a disagreement, this section explains how you’ll resolve it—whether through mediation, arbitration, or going to court.
  • Waivers: If one party doesn’t enforce a part of the agreement right away, it doesn’t mean they’re giving up their right to do so later.
  • Liability insurance: Although a rare case in independent agreements, sometimes, the freelancers might need to have insurance in case something goes wrong during the project, and this part will specify that.
  • Intellectual property ownership: It will specify who owns the work created during the project, so there’s no confusion about using it later.
  • Confidentiality clause: If the company is dealing with sensitive information, this part makes sure it stays private and can’t be shared without permission.
  • Non-compete agreement: If there’s a non-compete clause, it will prevent the freelancers from working with the client’s competitors for a certain period after the project is done.

How to Negotiate Independent Contractor Agreement?

Negotiating with a freelancer is all about keeping fair and realistic. Here are 8 negotiation tips to reach an effective agreement:

  1. Instead of agreeing to a lump sum at the end of the project, propose breaking the payment into phases tied to deliverables.
  2. Keep the scope of work and timelines simple but comprehensive. Avoid overly complex descriptions of tasks—use bullet points and specific deadlines to create an agreement that’s easy to understand and follow.
  3. Offer incentives for early completion or penalties for delays. Contractors often appreciate the opportunity to earn more for finishing ahead of schedule.
  4. Frame discussions around “win-win” situations. Instead of pushing for a one-sided deal, try to find ways that both parties benefit. For example, if the contractor agrees to a slightly lower rate, you could offer additional flexibility in project deadlines or non-monetary perks (e.g., more creative freedom or access to new projects).
  5. Include provisions for renegotiating terms if circumstances change. Life happens. Situations evolve. Including a clause that allows for renegotiation if key factors change (e.g., project scope, deadlines, or performance expectations) can make both parties feel more comfortable committing to the agreement.
  6. Be prepared to walk away if terms aren’t right. Sometimes the best way to negotiate is by showing you are willing to walk away from the deal. This can prompt the other party to be more flexible and consider your terms seriously. Just be sure to maintain professionalism and leave the door open for future discussions.
  7. Mention the potential for future collaboration. If you’re impressed with a contractor’s work, bringing up the possibility of ongoing or future projects can help motivate them to negotiate more favorable terms. This sets a long-term working relationship in motion.
  8. Negotiate a fallback solution if issues arise. If a key deliverable is delayed, include a backup plan for adjustments or extensions. Knowing that there’s a way out (e.g., shifting deadlines or re-scaling the scope) makes both parties feel more confident in committing to the deal.

How to Terminate an Independent Contractor Agreement?

You’ll have a safe termination if you already took care of a good exit plan. Here’s a how-to properly terminate the agreement:

1. Review the Termination Clause in the Contract

Before taking any steps, thoroughly read the termination clause in the contract. Most contracts (including the template we offer) include specific conditions under which either party can terminate the agreement. Here are some of the common types of termination

Pay special attention to required notice periods, penalties, or conditions for termination.

2. Follow the Notice Period and Procedures

If the contract specifies a notice period (e.g., 30 days), you must provide the contractor with this notice before termination. Failing to give proper notice can lead to legal issues, including claims for breach of contract.

3. Provide Written Notice of Termination

Draft a formal, written notice of termination that outlines the reason(s) for ending the contract. It should include the effective termination date, any outstanding payments owed, and instructions on returning any company property or confidential materials.

📌 Remember: If you’re terminating for cause (e.g., failure to meet deadlines, breach of confidentiality), document the issues and refer to specific clauses in the contract.

4. Discuss Outstanding Payments and Deliverables

If the freelancer has completed part of the work, make sure to pay for completed deliverables in accordance with the contract.

❗Important: If the freelancer is handling ongoing projects, arrange for a smooth handoff or transition, if possible.

5. Document Everything

Keep a record of all communications and actions related to the termination, including emails, written notices, and payments made.

Laws Governing Independent Contractor Agreements

EU

While EU law does not have a unified, specific legal definition for independent contractors, member states generally distinguish between employees and self-employed workers based on factors like control over work, autonomy, and economic dependence. The EU Directive on the Posting of Workers sets standards for cross-border work arrangements, while some countries, such as France, have detailed laws addressing self-employment, including protections for gig workers.

Independent contractors in the EU are typically responsible for their taxes, but some protections, like access to social security benefits or pension schemes, may vary depending on the country. The EU’s Digital Services Act also addresses gig economy workers and attempts to balance worker protection with the flexibility of independent contracting. Misclassification or violations of these rules can lead to penalties and legal actions, especially as European countries increase scrutiny of gig economy work arrangements.

US

In the United States, independent contractor agreements are primarily governed by federal, state, and local laws. The Internal Revenue Service (IRS) is an indispensable part of these contracts. The IRS uses criteria such as the level of control the employer has over the worker, the worker’s independence, and the nature of the work relationship to determine whether a worker qualifies as an independent contractor.

Get a Free Independent Contractor Template

Start easily, securely, and quickly by filling out our free independent contractor agreement template. All you need to create a legally binding agreement is already included in our template. Just populate the placeholders with the client and freelancer’s information. You can also electronically sign it off from anywhere, using any device. Give it a try now!

FAQs

Are Non-Compete Agreements Enforceable Against Independent Contractors?
Yes, non-compete agreements can be enforceable against independent contractors, but their enforceability depends on factors like jurisdiction, reasonableness, and the specific terms of the agreement.
Do Non-Disclosure Agreements Apply to Independent Contractors?
Yes, non-disclosure agreements (NDAs) can apply to independent contractors, and they are often used to protect sensitive information. When independent contractors have access to confidential business information, an NDA helps ensure that they do not disclose or misuse that information during or after their contract.
How Often Must an Independent Contractor Agreement Be Renewed?
An Independent Contractor Agreement must be renewed based on the terms outlined in the contract. Periodic reviews, typically every 6 to 12 months, are common to assess the ongoing nature of the relationship and to adjust terms as needed, such as changes in scope or payment.

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Clause Library: learn more about the clauses in this template

Learn more about the clauses appearing in this template and find other clauses that are used in real contracts.

Contract duration

The contract duration clause specifies the length of time for which the agreement remains in effect, outlining the start and end dates of the contractual obligations. It may also include provisions regarding renewal or termination options before the specified end date.

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Scope of services

The "Scope of Services" clause outlines the specific duties, responsibilities, and deliverables that a party is obligated to perform under a contract. It defines the parameters of the work to be completed, ensuring both parties have a clear understanding of what is expected and reducing the potential for disputes.

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Taxes and duties

The "Taxes and Duties" clause specifies that each party is responsible for its own taxes and duties associated with the execution and performance of the contract. It may also outline the obligations for withholding taxes and state any requirements for the provision of tax-related documents.

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Intellectual property ownership

The intellectual property ownership clause outlines the rights and responsibilities regarding the ownership and control of intellectual property (IP) created or used within the scope of a contract. Typically, it specifies whether the IP rights are retained by the creator, transferred to another party, or shared between parties involved, thereby preventing potential disputes over IP rights.

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Termination

A termination clause outlines the conditions under which a contract may be legally ended by either party. It typically specifies acceptable grounds for termination, necessary notice periods, and any associated penalties or procedures to be followed.

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Severability

A severability clause ensures that if any provision of a contract is found to be unenforceable or invalid, the remaining provisions will still remain in full effect. This clause helps preserve the overall integrity of the agreement by allowing the enforceable sections to stand independently of any invalidated sections.

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Governing law and jurisdiction

The "Governing Law and Jurisdiction" clause specifies which region's legal framework will be applied in interpreting and enforcing the terms of a contract and designates the location where any legal disputes will be resolved. This clause is crucial for determining procedural and substantive legal matters, ensuring both parties are aware of the legal standards and courts that will have authority in case of conflicts.

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No third party beneficiaries

The "No Third Party Beneficiaries" clause stipulates that the contract is intended solely for the benefit of the parties involved, and no external parties have any rights or claims under the agreement. This clause ensures that only the signatories have enforceable interests and precludes any unintended beneficiaries from asserting rights derived from the contract.

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