How Do You Terminate An Independent Contractor Agreement

Tip: If the contractor receives business registrations, follow the logins you give. In the event of termination, make sure that passwords are easily accessible and can be changed. Practical advice: When developing a termination provision for an independent contract, make sure it is not too complicated. Below is a typical termination provision that is simple but effective: companies can lay off staff, but no one can “fire” an independent contractor – at least not with respect to the separation of a person from the job. Contractors are not employees and are therefore not subject to current labour law. However, contractors work under a defined employment contract, so that the contractor can accept the termination of the employment contract if the contractor`s work does not meet the standard or if it does not live up to its agreed work product. The first thing to do is to look into their contract. A good contract has termination clauses. These are the situations in which either the recruitment activity or the independent contractor can end the relationship. There may also be a termination provision or other guidance on how to end the relationship.

If you work in the online business world, you probably work as independent or with entrepreneurs. (If you`re not sure the difference between an independent contractor and an employee, look at this contribution.) Whether you are the independent contractor or hiring a contractor, you need to make sure that you have a strong contract to define your relationship. Make sure all work products are properly paid if you terminate an independent contract. Never refuse payment of the product provided to express your dissatisfaction with the contractor. Even if you think the work was not worth it, if the services were provided or if the product was delivered, then you have to pay for it. Recruiting a contractor is another matter. It and the contractor develop working conditions and both parties are responsible for compliance with the agreement. If you decide to terminate a freelancer contract, you can continue to be responsible for the performance of your duties (for example.

B payment of the freelancer`s work), unless you can terminate the contract for other reasons.