Parties should be aware that advisory agreements cannot be used to conceal another type of relationship. The Supreme Court clarified that written contractual clauses that do not reflect the actual agreement between the parties cannot be taken into account in determining the status of the employment. Although the terms of advisory agreements are important in determining the volume of consulting firms, it will not be possible to insert terms (for example. B substitution clauses) that do not accurately reflect the functioning of relationships in practice in an attempt to deny the status of employment. The agreement should provide that the advisor maintains appropriate insurance. This may include: The contract may include the advisor`s compensation for losses incurred by the client as a result of the advisor`s actions or omissions during the provision of services. An advisor could attempt to water down any compensation, so that any liability is carried out only on a normal contractual basis and not on a higher compensation basis. An advisor may also include a clause with limits on any responsibilities that may be related to fees received or available insurance coverage. Clients should consider whether to include in their consulting contracts a clause that provides consultants with adequate insurance.
When a CSP is used, the provisions of its advisory agreement do not bind the individual advisor. Therefore, if the client wants the individual advisor to be related to him, he must ensure that the advisor enters either as a contracting party or makes the commitments separately, for example. B with a letter. For example, the agreement may contain a statement that excludes the counsellor from employment status. Although the provisions of the advisory agreements do not determine the status of the employment, it is useful to demonstrate on the face of it the intentions of the parties. These can be general or very concrete and detailed, in which case they can be defined in a separate timetable on the back of the agreement. The relationship between the client and the advisor is simply contractual. It is less subject to legal provisions than employment contracts, which provides greater flexibility for consulting contracts. It is essential that advisory agreements contain appropriate intellectual property rights provisions. Unless otherwise stated, the advisor is usually the owner of an IP he created during the transfer. There may be situations where it may not be necessary or appropriate for you to constantly recruit staff. Such an agreement also allows for greater flexibility than permanent employment.
A short-term renewable contract can help your company keep its employees in line with market requirements. The traditional form of consultation is an agreement between an individual advisor and the client for whom the advisor provides services. The agreement is based on the fact that the consultant is truly independent (i.e. in the company on his own behalf) and is not an employee of the client. Unlike staff, consultants are generally not tacitly bound to confidentiality. It is therefore important to include explicit confidentiality provisions in advisory agreements. If the advice agreement imposes detailed and restrictive obligations on the advisor similar to those imposed or implied on a worker, this may lead to the realization that the counsellor is indeed a worker.