News Tips & advice

What is an assignment agreement?

As an Independent Professional, you want security of work and payment when you take on a new assignment. To ensure that you and your client don't have to worry, you can draw up a contract of assignment. With this, you declare that you will perform work for a client for a specified time and fee, without entering into an employment relationship.

Why an agreement?

Verbal agreements are valid, but there is always the possibility that someone will go back on their word. With a written agreement, you legally establish the arrangements. Often clients who work a lot with Independent Professionals already have a contract of assignment ready, but you can always adjust things in this or you can draw up your own agreement. As long as both parties agree with the content, a good cooperation can arise.

Not sticking to the agreement?

Your client can terminate the agreement. The client is then liable for damages: this means that he still has to pay you your money. As a contractor you can only terminate the contract if you are asked to do unreasonable things. Another reason could be that your client structurally fails to meet the payment deadline. Ultimately, the judge will determine if your reason for termination is weighty enough. If you are in doubt about the arrangements in your agreement, you can contact a legal advisor.

What should be in a contract of assignment?

You can find several examples of assignment agreements. In any case, the following points should be in such an agreement:

  • payment arrangement/compensation;
  • description of the work;
  • details of both the contractor and client;
  • independence of the contractor (VAR declaration);
  • signature of both parties.

View an example of a commission contract

An assignment agreement
What is an assignment agreement?

Note: A contract for services is really different from an employment contract. Namely, you are not going to be employed. The big difference between these two documents is that a contract for services does not mention anything about the position of authority. For example, there are no specific working hours in it and nothing is said about how you are to do your work. You work for as long as the assignment lasts, then the agreement ends. The difference between these agreements is important to the tax authorities.

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