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FAQ - Subcontractor Agreement

What is the purpose of Subcontractor Agreement?
The purpose of Subcontractor Agreement is for the employee to have an understanding as to what is expected as far as his/her work is concerned. This is the responsibility of the sub-contractor. If a client does not have a Subcontractor Agreement with this company, it is possible that the client would have to pay an additional fee for this service. What is the fee for the contract? In a minimum payment arrangement, a fee for the contract should be paid to the company who is supplying the services. Any additional cost involved in supplying this service should be borne by the client and is not the responsibility of the Subcontractor. What is the duration of a contract? Contracts normally last for a period of 14 days. Is a contract payable daily, weekly, monthly or yearly? Contracts are payable daily, weekly, monthly, or yearly. The contract period is as specified in the contract specifications. Contracts can only be terminated by the company or client. A termination of the Contract by the client can only be through written notice given to the company. Any termination of a contract by the client can only be for any of the following reasons: A change in the terms of the contract (example: a reduced scope of services or reduction in hours). A reduction in the quality of the goods/services. Does my partner/employer pay the fee for my contract? Yes they do. This applies even if you are self-employed. This is because your partner/employer is the person who agrees to allow you to take the work on the project and to pay the monthly Subcontractor Fees. Can I be contractually required to take my job elsewhere? Contracts can be terminated by either party at any time for any of the following reasons. A change in the service contract for which either party is given 14 days' notice (a 'cooling off' period for the employee that allows him/her to choose a new service provider). The company or individual goes bankrupt A termination of the Contract by the client. (a 'sub-contractor' termination) A new client takes the contract in their own name. If I terminate a contract I am not required to do anything. Do I have any legal obligations? Yes, there are some basic obligations that you have to keep your clients informed and to make sure you have properly documented your termination of the contract.
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