VA Subcontractor Agreement Template
There comes a point in the journey of a VA where you either close your books because you are full or you take more work but engage subcontractors to work with you to help you service a larger number of clients. Sounds great but engaging subcontractors has issues like expected rates and hours, payment of superannuation (yes you can be required to pay a contractor superannuation), whether your subcontractor has anti-virus protection or insurance or the big one, when your subcontractor poaches your client and cuts you out. Fortunately our VA Subcontractor agreement covers all these issues and more.
There comes a point in the journey of a VA where you either close your books because you are full or you take more work but engage subcontractors to work with you to help you service a larger number of clients. Sounds great but engaging subcontractors has issues like expected rates and hours, payment of superannuation (yes you can be required to pay a contractor superannuation), whether your subcontractor has anti-virus protection or insurance or the big one, when your subcontractor poaches your client and cuts you out. Fortunately our VA Subcontractor agreement covers all these issues and more.
There comes a point in the journey of a VA where you either close your books because you are full or you take more work but engage subcontractors to work with you to help you service a larger number of clients. Sounds great but engaging subcontractors has issues like expected rates and hours, payment of superannuation (yes you can be required to pay a contractor superannuation), whether your subcontractor has anti-virus protection or insurance or the big one, when your subcontractor poaches your client and cuts you out. Fortunately our VA Subcontractor agreement covers all these issues and more.
About the VA Subcontractor Agreement Template Australia
The VA Subcontractor Agreement Template (also called the VA Subcontractor Contract or a VA Independent Subcontractor Agreement) is a template subcontractor agreement drafted specifically for a Virtual Assistant (VA) who wants to engage a subcontractor in their business, specifically another VA.
· This template is a general template drafted for Australian laws and is suitable for use in New South Wales, Queensland, Victoria, Tasmania, South Australia, Western Australia, Northern Territory and The Australian Capital Territory.
· A subcontractor arrangement is an independent Subcontractor arrangement under Australian law and does NOT create the same employment relationship between the parties as an employment agreement.
· Before using this template, we suggest you review the Australian Tax Office (ATO) guidelines for an independent Subcontractor to ensure that your proposed contracting arrangement will not be classed as an employee and employer relationship because the ATO can be strict. You can find those guidelines here: https://www.ato.gov.au/business/employee-or-Subcontractor/
· If you pay a subcontractor mainly for their labour, they are classed as employees for superannuation guarantee (SG) purposes and you may need to pay to a super fund for them. Even if they have an ABN this could still happen. In this case the Subcontractor fee needs to include superannuation and you can deduct the superannuation amount from their fee if you are required to do so. You can find out more information here: https://www.ato.gov.au/Business/Super-for-employers/Work-out-if-you-have-to-pay-super/Super-for-Subcontractors/
Clauses
The following clauses/features are in the VA sucontractor Agreement Template:
An easily customisable schedule (table) at the front means you don’t need to mess around with the contract clauses when you use it again for a second or third VA Subcontractor;
Has clear start and finish dates (and also allows ongoing arrangements)
Has clear clauses around price and payment/invoicing and work availability
Makes it clear that the price the VA will pay the Subcontractor is inclusive of Superannuation if they are liable to pay superannuation (see link above to ATO for more details on the superannuation guarantee for contractors to work out if it applies, noting the contract covers it but it is up to you to get accounting and professional advice to determine if it applies)
Duties of the subcontractor to carry out the work in a professional, efficient, safe, and confidential manner
Obligations of the VA to give access to IT Systems of VA and VAs clients plus provide the subcontractor with instructions.
Contains a clause affirming the subcontractor relationship (ie not an employment relationship)
requires the subcontractor to keep records
allows for payment of GST if one or both parties are registered
Protects the VAs business intellectual property
Contains legal protections for the VA and promises that the subcontractor has the correct insurance, will resupply services if done negligently, and will not sign the business up to any contracts
Contains a confidentiality clause
Contains a non-solicit clause to stop the Subcontractor from poaching the VA’s clients and working with them directly
Contains termination and dispute resolution clauses
Contains other “boilerplate” provisions around notices and governing law etc required in legal contracts.
Instructions for use
Complete the Schedule and execution pages in full by inserting the details prompted by the red text throughout the document;
review the document; and
Both parties to review, sign and date on the last page (the Signing Page).
If you need further assistance
If you have questions, please get in touch with us via bossteam@readytobosslegal.com
Disclaimer
Ready to Boss Legal is a legal publisher. We are not a law firm and you acknowledge that by purchasing, downloading and customising this template, Ready to Boss Legal is not acting as your lawyer or providing you with legal advice.
This template is legal information only and should not substitute for or constitute professional legal advice. We recommend you consult with a lawyer for legal advice, noting Ready to Boss Legal is a legal publisher and not a law firm.
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