The Best Ways to Use a Work for Hire Agreement Template
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The concept of independent contracting is far more diverse than many people realize. Often, these contractors are only needed for a brief period of time. While completing requested services, however, both they and the clients who hire them face several significant risks. These could include:
- Missing the deadline for the job's requested completion
- Not paying according to the itemized invoice
- Sharing confidential information
A work for hire agreement can protect all parties by outlining the scope of the services, the expected payment, and options for resolving potential disputes. To clarify this document — and the need for a work for hire agreement template — we've developed a guide that highlights the following:
- Basic Details to Include In a Work for Hire Agreement
- Additional Clauses That Might Be Helpful
- Mistakes to Avoid
Basic Details to Include In a Work for Hire Agreement
No two short-term contract jobs look exactly alike, and, as such, each work for hire agreement will be a bit different. Still, these basics can be expected in each template and completed document:
- Description of all provided services. This section should be detailed. Which services, exactly, will the provider complete? What can the client expect in regards to the completed product?
- Compensation details. The contract should explain how the service provider will be compensated. Depending on the situation, this section might include the amount the provider can expect to be paid, as well as details on the invoicing process.
- Ownership of the final product. Be sure to clarify that, once the service has been completed, the client will own all rights to the finished product.
- Confidentiality. When working with contractors, clients often need to share proprietary information that they'd prefer to keep private. A confidentiality clause can reduce the risk of such information being shared without permission.
Additional Clauses That Might Be Helpful
Depending on individual circumstances, extra clauses may be required to ensure full protection. Consider adding the following to your work for hire agreement:
- Termination. Under what circumstances can the work for hire agreement be terminated? How will payment proceed in the event of termination? If proprietary information is involved, make sure this clause indicates whether materials or completed products should be returned to the client.
- Agreement dates. The term of the agreement may be limited if there is a specific date on which the services are to be completed. This clause may also indicate that the agreement goes into effect on the day it is signed.
- Opportunities for amendment. Should the agreement need to be modified at some point, it must explain procedures for making amendments. Typically, both parties will agree in writing to any proposed changes.
Mistakes to Avoid
Documents that seem thorough often contain significant mistakes that can leave both the client and the contractor at risk. Avoid these preventable mistakes as you move forward with your work for hire agreement template:
- Vague language. From the service descriptions to details regarding compensation, every part of the work for hire agreement should include specifics so that there is no room for interpretation later on. This approach can dramatically reduce the likelihood of disputes. Remember, templates can and should be customized
- Indications of an employee-employer relationship. Work for hire agreements should make it abundantly clear that the person providing the services will act as an independent contractor, rather than an employee. Often, work for hire agreements also explain that service providers have no intention of establishing partnerships or other types of fiduciary relationships.
Getting the Work For Hire Agreement Signed
Once your contract is complete, it's time to take the final step and get it signed. Be sure to safeguard the contract and all those who sign it. This process is both easier and safer when completed via Nitro Sign. Start your free trial to learn how this service works and why it's so beneficial.