This Security Sub-Contractor Agreement is designed for use by an individual
providing security services as a sole trader on a self-employed
sub-contractor basis for a main contractor and has been designed to be
sufficiently broad to cover a range of types of security work.
This document provides a framework covering all of the essential legal
matters required for a sub-contract of this kind. The exact nature of the
services to be provided should be detailed in full in the schedule at the
end of the document.
Particular attention is paid in this document to the all-important SIA
licensing requirements. Security sub-contractors must be appropriately
licenced, as must any other parties they may wish to substitute in the
performance of their services.
A key element addressed in this sub-contract is insurance. Two options are
contained within this provision and must be chosen with care. Under the
first, the main contractor’s insurance covers the provision of the services
by the sub-contractor. Under the second, the sub-contractor is required to
obtain his own insurance. An optional schedule is also provided for the
attachment of relevant insurance documents.
Further key provisions in this document address confidentiality,
non-competition and non-solicitation. The appointment of the sub-contractor
is non-exclusive. The work order is at his discretion.
This document has been updated with a simplified data protection clause which refers to a separate privacy policy (or similar). Full details of personal data use should be provided in that document.
This document includes a data protection clause but if the Sub-Contractor
will be carrying out any data processing for the main contractor, you might
wish to add the standard data processing clause which you can find
here
.
Other important provisions in this form of agreement relate to the
individual’s status as a sole trader working as a self employed independent
sub-contractor.
Subject to the requirements dictated by the nature of the services, the
sub-contractor retains a degree of independence in decision-making and may
(subject to the above-mentioned SIA requirements) provide substitute
workers. The sub-contractor is also responsible for his own tax and
national insurance payments.
The drafting of this document aims to reduce the risk that the individual
might be deemed a de-facto employee of the main contractor rather than a
sole trader who is a self-employed sub-contractor. However, whether in law
he is self-employed rather than an employee will depend on all of the
circumstances (not just on the terms of this document).
If the sub-contractor is deemed to be an employee, he will be subject to
different levels of tax and National Insurance Contributions. Furthermore,
the payment of income tax and National Insurance will be the responsibility
of the main contractor that hired the sub-contractor.
Further guidance on tax and employment status of individuals who act as
sub-contractors can be found in the
Guidance Note
relating to Self-employment and IR35, but we nevertheless recommend that
you take professional legal and tax advice before using this form of
document.
This form is written from the perspective of a company as the main
contractor. The contractor does not have to be a company and any references
to this can be changed without altering the meaning or purpose of the
document.
Optional phrases / clauses are enclosed in square brackets. These should be
read carefully and selected so as to be compatible with one another. Unused
options should be removed from the document.
This Security Sub-Contractor Agreement contains the following clauses:
1. Definitions and Interpretation
2. Engagement of Sub-Contractor, and obligations of the parties
3. SIA Licensing
4. Indemnity and Insurance
5. Provision of Equipment
6. Status of the Sub-Contractor
7. Payment
8. Non-Competition and Non-Solicitation
9. Confidentiality
10. Data Protection
11. Term and Termination
12. Force Majeure
13. Entire Agreement
14. Assignment and Subcontracting
15. Relationship of the parties
16. Third party rights
17. Notices
18. Severance
19. No waiver
20. Law and Jurisdiction
and the following Schedules:
1. The Services and the Term
2. SIA Licensing
3. [Insurance]
4. [Privacy Notice]
This document is in open format. Either enter the requisite details in the
highlighted fields or adjust the wording to suit your purposes.
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