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If you engage an external consultant, formalize the collaboration in a sound consultancy agreement. In it, you regulate the assignment, remuneration, intellectual property rights to the results, confidentiality, and liability — and prevent risks such as bogus self-employment.
Why a consultancy agreement?
Companies cannot have all expertise in-house and therefore hire consultants—from IT to accountancy. Such collaboration brings valuable knowledge, but without proper agreements, also risks. A consultancy agreement (a form of contract for services) clearly defines the relationship.
Assignment, remuneration and duration
Clearly define what the consultant does (scope and results or effort), the remuneration and invoicing, the duration, and the termination options. Determine whether it concerns an obligation of effort or an obligation of result, so that you do not wrongly expect or promise a fixed result.
Intellectual property and confidentiality
If the consultant produces reports, models, software, or other results, specify who holds the intellectual property rights—preferably you, or via a broad license. Also include a confidentiality clause, as the consultant often gains access to confidential information.
Liability and bogus self-employment
Limit liability within legal limits and make agreements regarding what happens if the advice results in damage. Be aware of bogus self-employment during long-term engagement: if the consultant effectively works as an employee under your authority, an employment relationship may arise, resulting in back taxes. Ensure that the contract and practice are consistent with self-employment.
Frequently Asked Questions
Do I need a consultancy agreement?
Highly recommended. They handle the assignment, remuneration, IP, confidentiality, and liability, and prevent disputes and risks.
Whose results are the consultant's?
Only if you agree to it, from you. Stipulate that the IP rights reside with you or that you receive a broad license.
Am I at risk of bogus self-employment?
Yes, for long-term assignment under your authority. Ensure that the contract and working methods truly suit independence.
A watertight consultancy agreement?
Our legal experts draft a custom engagement or consultancy agreement. View our contract law team or schedule a free consultation .
