Independent Contractor Agreement Template (Ontario)

Independent Contractor Agreement Template (Ontario)

This Independent Contractor Agreement sets out the terms and conditions governing the professional relationship between a hiring entity and an independent contractor. It is designed to clarify the scope of work, payment terms, and the nature of the working relationship under Ontario law.

Independent Contractor Agreement

This Agreement is made effective as of [Date], by and between:

The Company: [Company Name], located at [Company Address] ("Company") The Contractor: [Contractor Name], located at [Contractor Address] ("Contractor")

1. Services

The Contractor agrees to provide the following services: [Describe Services in Detail]. The Contractor shall perform these services with reasonable care and skill, consistent with industry standards.

2. Term

This Agreement shall commence on [Start Date] and shall continue until [End Date] or until terminated by either party upon [Number] days' written notice.

3. Compensation

The Company shall pay the Contractor [Amount] per [Hour/Project/Month] for the services rendered. The Contractor shall submit an invoice to the Company on a [Weekly/Monthly] basis. Payment shall be made within [Number] days of receipt of the invoice.

4. Independent Contractor Status

The parties agree that the Contractor is an independent contractor and not an employee, partner, or agent of the Company. The Contractor is solely responsible for all taxes, including HST, CPP contributions, and income tax, and is not entitled to any employment benefits provided by the Company.

5. Confidentiality

The Contractor acknowledges that they may have access to proprietary information. The Contractor agrees to keep all such information confidential and not to disclose it to any third party during or after the term of this Agreement.

6. Intellectual Property

All work product, deliverables, and materials created by the Contractor specifically for the Company under this Agreement shall be the sole property of the Company upon full payment of fees.

7. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

8. Signatures

Company Representative: ____________________ Date: [Date] Contractor: ____________________ Date: [Date]

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Pro Tips

• Define Deliverables: Use specific attachments or "Schedules" to define the exact scope of work to avoid "scope creep."
• HST Registration: If the Contractor’s annual revenue exceeds $30,000, they are generally required to register for an HST number in Ontario and collect tax on their invoices.
• Avoid Control: To maintain the independent contractor status, ensure the Contractor has autonomy over how, when, and where they perform the work.

FAQ

Does this agreement guarantee the contractor is considered self-employed by the CRA?

Not necessarily. The Canada Revenue Agency (CRA) looks at the substance of the relationship (control, ownership of tools, risk of loss, and chance of profit) rather than just the label used in a contract.

Is this agreement legally binding in Ontario?

Yes, provided it is signed by both authorized parties and includes the necessary elements of a contract (offer, acceptance, and consideration).

Should I include a non-compete clause?

You may include restrictive covenants, but they must be reasonable in scope, duration, and geography to be enforceable under Ontario law. Overly broad clauses are often struck down by courts.