This agreement comes into existence when an organization is planning to appoint an external consultant to work on a definite task or assignment for your company. A consultant is usually an expert in his own field who will assist in providing specialized solutions for a temporary period.
In the best interest of both of the company and the consultant, the agreement needs to be secured by a written contract laying out the basic and specific foundation for future collaboration. The consultancy agreement will not only protect the interests in data protection and intellectual property matters but it also acts as an aid as a proof if there arises any dispute or court case or proceedings.
The consultant is an independent contractor and cannot be considered as an employee of the company thus making him ineligible to receive the same benefits as an employee on the rolls. A consultant is hired on a set of exclusive terms and conditions.
In most cases, one will not qualify as they are not an employee of the company. This will be detailed in the agreement made by you with the employer. The benefits like provident fund etc. may not be in reach.
A consultant helps to estimate the strengths and weaknesses in the business and works with the goal of improving your processes and brand. They have specialized experience in a particular area.
To ensure that there is a smooth relationship and working from beginning to end between both parties, the following terms should be incorporated into any consultancy contract:
There are very few main reasons why you would hire a consultant for assistance:
In situations where one want to improve an aspect of the business, an independent opinion can be productively critical. A consultant can help guide into the direction for success
A consultant can provide more in depth insights into a specific difficult area.
As an employer, one will have an obligation to pay for added employment benefits, For outside consultants, this is not required.
The term of work designated to a consultant is usually for a fixed period only and there are no long-term obligations after your contract expires.