Parties should be aware that advisory agreements cannot be used to conceal another type of relationship. The Supreme Court clarified that written contractual clauses that do not reflect the actual agreement between the parties cannot be taken into account in determining the status of the employment. Although the terms of advisory agreements are important in determining the volume of consulting firms, it will not be possible to insert terms (for example. B substitution clauses) that do not accurately reflect the functioning of relationships in practice in an attempt to deny the status of employment. The agreement may contain a statement excluding the advisor from employment status. Although the provisions of the advisory agreements do not determine the status of the employment, it is useful to demonstrate on the face of it the intentions of the parties. The use of service companies has increased because it has a number of benefits for those who work under the agreement: they can limit their liability and, if properly structured, receive more tax-efficient counselling fees (for example. B as dividend). The agreement is tailored to a single fully described task – probably a standardized service that you offer to all customers, like. For example, a specified number of hours of investment advice. It is essential that advisory agreements contain appropriate intellectual property rights provisions.
Unless otherwise stated, the advisor is usually the owner of an IP he created during the transfer. Clients may want to protect their business interests by imposing restrictive agreements on their advisors to request a limited period after the end of consulting contracts. While it is very rare to impose a strict non-competition clause on an advisor (not least because it might indicate employment status), other types of restrictive alliances are more common. This agreement clearly shows that it is a service contract and that the consultant is an independent contractor. This agreement is for an expert in a given area to advise a large or small client. We cannot overestimate the importance of a thorough and agreed specification of the work. The agreement you choose will reduce the likelihood of conflicts over the operation of the contract and the application of the law, but only you can describe the work in detail. The traditional form of consultation is an agreement between an individual advisor and the client for whom the advisor provides services.