Sub-Contractor Agreement Template

Fixed Term Sub-Contractor Agreement

TR.SCONT.01

This Fixed Term Sub-Contractor Agreement is designed for use by a main contractor wishing to take on independent trades-people working for a fixed term on a self-employed basis, for example where only a single task is required, or where the main contractor itself is operating on a time limit.

In this template, the appointment of the sub-contractor is non-exclusive. The work order is at his discretion. He is free to engage the services of others at his own expense. Faulty work must be put right at his expense. Equipment must be provided by him. Payment is to be made on completion of work.

The drafting of this agreement aims to reduce the risk that the individual sub-contractor might be deemed a de-facto employee of the main contractor rather than a sole trader working on a self-employed basis as a sub-contractor, but 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 sub-contract agreement).

If the individual subcontractor 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 in this group but we nevertheless recommend that you take professional legal and tax advice before using this form of document.

This form of agreement 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.

This Fixed Term Sub-Contractor Agreement contains the following clauses:
1. Engagement of the Sub-Contractor
2. Indemnity
3. Provision of Equipment and Protective Clothing
4. Status of the Sub-Contractor
5. Consideration
6. Non Competition and Non Solicitation
7. Termination
8. Miscellaneous
9. Governing Law and Jurisdiction

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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