Understanding Consultant Agreements: How Do Company vs. Individual Contracts Differ?

Dear all,

Is there any difference between the agreements written between companies and between a company and a person in the case of consultants?

Specifically, the clause:

Assignment: The services to be performed by the consultant hereunder are personal in nature, and the company has engaged the consultant as a result of the consultant's expertise relating to such services. The consultant, therefore, agrees that it will not assign, sell, transfer, delegate, or otherwise dispose of this agreement or any right, duty, or obligation under this agreement without the company's prior written consent. Nothing in this agreement shall prevent the assignment by the company of this agreement or any right, duty, or obligation hereunder to any third party.

Looking forward to your suggestions.

Hi, If the consultant is going to offer consultancy for a longer period with the renewal of the contract at specific intervals, and if the consultant is devoting his full time to the company, then there are probabilities that the consultant could be deemed to be an employee of the company. The question of non-payment of statutory parts like PF/leave may arise. Even the consultant can claim employment rights in the future. Whereas an agreement entered between two companies will be totally different.

Agreements Between Companies and Consultants

Agreements between companies and consultants are basically the same; the major difference is that the company has the freedom to decide who will execute the work, while a consultant is hired for specific talent or skill, and the agreed assignment(s) cannot be sub-delegated.

Suggestion for Draft Clause

The draft clause serves its purpose. A suggestion is that, instead of mentioning "otherwise dispose of this Agreement," you may redraft it as "otherwise dispose of the work content as per this agreement."