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CONSULTANCY AGREEMENT
A consultancy agreement is an agreement that an organisation/employer enters into with his/her consultant. This agreement governs the relationship between the consultant and the employer and it enumerates various terms of their relationship, such as deliverables, timelines, compensation, roles and responsibilities, etc.
Especially from the business point of view, it is pertinent to enter into a Consultancy Agreement, in order to define the scope of work for the consultant and to restrict him/her with the obligations such as confidentiality, exclusivity, indemnification and non-competition.
How it works?
Define engagement terms
Specify scope of consultancy, deliverables, timelines, fees, and payment schedule.
Agreement drafting
Our lawyer drafts the consultancy agreement with IP rights, confidentiality, and liability clauses.
Review & finalization
Review the draft, clarify obligations of both parties, and finalize the terms.
Execution ready
Final consultancy agreement delivered on stamp paper — ready for signing by both parties.
Contents of Consultancy Agreement
- What is the job description and what are the duties of the consultant?
- What is deliverable expected/required from the consultant?
- What is the compensation structure?
- What is the term of consultancy? Is there any lock-in period?
- Is there an exclusivity required to be offered by the consultant?
- Are there any leave entitlements?
- How can the consultancy be terminated? What is the notice period?
- How would the intellectual property in the work done by the consultant during the course of his/her arrangement be treated?
- Is there any non-compete and non-solicit restriction?
Laws governing the Consultancy Agreement in India
The different laws which govern various aspects of Consultancy Agreement in India are as follows:
- The Indian Contract Act, 1872
- Shops & Commercial Establishment Act (State-wise)
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Code on Wages, 2019
- Arbitration and Conciliation Act, 1996
- Copyright Act, 1957
- The Trademarks Act, 1999
- Patent Act, 1970
- Design Act, 2000
Why Legitax
- Senior Expert Lawyers: We will get your document drafted/reviewed by Senior Expert lawyers, skilled in Employment and HR laws. You can track the progress of your document on our platform at all times.
- 4.5 Customer Score: Clients are delighted with our service! They have consistently rated us high because of our focus on delivering quality output and providing regular updates.
- Responsible Delivery: Our team of experienced business advisors are just a phone call away. Our team will ensure that your interaction with the expert lawyer is smooth and seamless and the document draft is delivered to you within the committed timeline.
Deliverables
Our standard deliverables for every document drafting includes:
- 30 Minutes of Talk-Time with the Lawyer for drafting/reviewing the Agreement
- First draft of the documents will be delivered to you within a maximum of 2 working days
- Post-delivery of the first draft – 2 Iterations per Document to incorporate your suggestions/changes
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Amritsar, Punjab
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Lucknow, Uttar Pradesh
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Bhopal, Madhya Pradesh
I've been using the Legitax app and it's really made dealing with legal stuff easier. It's great how I can just open the app and quickly find a legal expert to talk to, no matter what time it is. Every time I've had a question, big or small, I've gotten easy-to-understand answers from their experts. The app is super easy to use too, which is a big plus for me. I feel more confident handling legal things now. Legitax has been a big help!
Vijay Kanoor
Bengalore, Karnataka
The Legal advice I get is straightforward and easy to understand, which is important for me. Using Legitax has taken away a lot of stress when it comes to legal matters. I definitely recommend it to anyone looking for quick and reliable legal help.
Krishnamoorthy B
Chennai, Tamil Nadu
The advocate I connected with on Legitax was incredibly helpful, clearing up many doubts I had. They offered solutions and insights into issues that were affecting my family and me. I've had such a positive experience that I wouldn't hesitate to recommend Legitax to my friends.
Bhavesh Jain
Jaipur, Rajasthan
I was really impressed with the quality of legal advice I received. The lawyer was patient, knowledgeable, and took the time to explain everything in detail. It felt like having a personal legal advisor at my fingertips.
Lata Sharma
Amritsar, Punjab
Very convenient service. I needed urgent legal advice regarding a property dispute and was connected with a qualified lawyer within minutes. The consultation was thorough and the advice was practical and actionable.
Prakesh Ranjan
Patna, Bihar
Excellent platform for legal consultations. The process is seamless and the lawyers are very professional. I got my documents reviewed quickly and the feedback was comprehensive. Highly recommended for anyone needing legal assistance.
Preety Singh
Lucknow, Uttar Pradesh
Legitax made the entire process of getting legal help so much simpler. From consultation to document drafting, everything was handled professionally. The pricing is transparent and reasonable.
Arvind Pratap
Bhopal, Madhya Pradesh
Frequently asked questions
A consultant is not an employee of the organisation. He/she is normally a professional who is offering services as per the scope of her/his assignment. A consultant may render services as an individual or as a firm or even as a corporate entity. As an employee, one is bound by the rules of the organisation concerning employment, such as leave, attendance and working conditions. This is not the case in case of a consultant. "Consultant" position also does not entitle the person to the legal rights of the employment nor entitles him to the rights of an employee (such as PF, gratuity etc).
There are certain benefits that an organisation enjoys when it hires a person as a consultant, rather than an employee. Some of those benefits include:- ● The organisation is not bound to comply with labour laws related to an employee's PF, Gratuity and other terminal benefits on retirement or resignation. ● Flat 10% Tax will be deducted by the organisation on every payment it makes to the consultant as against for employees, where appropriate tax as per their income tax slab is deducted. ● You can discuss deliverables with the consultant you plan to hire and only pay on completion of the task. ● Since contractors are not technically employees of your company, it gives your greater flexibility to control the conditions of their work and remuneration. ● Again, since consultants aren't technically employees, your company does not bear full responsibility for their actions on the job. ● The organisation has to ensure lesser compliances in terms of consultant, than what it has to do in case of employees.
A Consultancy Agreement provides clarity to both the parties, i.e. an employer and the consultant, as to the exact expectations of the job, compensation structure, deliverables, timelines, termination mechanism, besides other important terms. This kind of clarity helps to prevent disputes between the parties, and if in case there is a dispute, the consultancy contract acts as an evidence of the arrangement mutually agreed to between both the parties.
No, it is not mandatory. However, even though there is no law that mandates it, it is however very important to enter into such an agreement, in order to provide clarity to the both the parties as to the exact expectations of the job, compensation, deliverables, timelines, termination mechanism, besides other important terms. This kind of clarity helps to prevent disputes between the parties, and if in case there is a dispute, the consultancy contract acts as an evidence of employment arrangement agreed to between both the parties.