Consultancy agreements are used by businesses to engage the services of an individual without forming an employment relationship. There are many questions to consider when entering into a consultancy agreement. A consultant may make use of materials that infringe other people’s IP rights when carrying out work for you. In the event this happens, you would be liable for any infringement so it is important to ask questions to check that the consultant understands IP and have the necessary legal protections in place.

What key clauses should you find in consultancy agreements?

All our consultancy agreements will ensure you have the following legal protection in place:

• Assignment of ownership of all intellectual property from your consultant to your business
• Appropriate warranties and indemnities to manage the risks of intellectual property infringement
• Confidentiality obligations to ensure any business critical information and know-how shared with your consultant remains confidential
• The consultant may supply personal data under the agreement so the terms must comply with data protection legislation
• By engaging a freelancer without clearly defining the relationship you risk being deemed to have engaged them as an employee, which is a burdensome legal relationship for the employer
• Exclude the possibility that a consultant could be regarded as an employee of your business

To speak with one of our expert business solicitors about consultancy agreements, whether to prepare one or review and advise on one you have received, contact us by calling 0131 478 4724, or complete our online enquiry form to request a call back.