Manyara Matambanadzo, Solicitor iwn the Commercial Team at HCR Law, explains the essential clauses for a clear and secure locum agreement
Despite locum arrangements providing a quick and flexible solution, unambiguous terms in contracts are key to ensure safeguards for both parties while guarding against any unplanned employment status determination. These terms include:
- Duration – whilst employment contracts are generally ongoing, unless explicitly stated otherwise, contractor agreements expire upon completion of the job – therefore their end date should be clear.
- Status – it is key to set out the working status of the locum, who will be engaged as a self-employed consultant, not an employee. So reflecting the intended legal relationship between the parties is imperative.
- Termination – covering the amount of notice required, the obligation(s) of both parties on termination, for example return of equipment by the locum, and how disputes will be resolved. Death or incapacitation of the locum may also be covered.
- Substitution clause – permitting the locum to provide a substitute to carry out the services in their place. It is helpful to allow appointment of substitutes at any time, not simply when the locum is unable to perform.
- NI and tax payment – stating that the locum is undertaking the work in a self-employed capacity and agrees to meet their own NICs, income and other taxes arising from the income.
- Non-solicitation – stopping the locum from influencing, encouraging or attempting to persuade clients which they have been introduced to during their course of engagement. These clauses also seek to stop the locum from leaving with them and taking their business elsewhere.
- Payment terms – this may cover invoicing, method and frequency of payment and how travel, mileage and expense will be dealt with. Your agreement will also need to outline exactly how payment will be structured.
- Obligations – regarding the locum, factors like the scope of work covered, nature of services to be delivered and whether any licenses need to be obtained could all be considered.
Full consideration of locum terms should always be at the forefront of your mind if you or your practice are considering engaging locums. Such agreements can avoid disputes or challenges later in the relationship. Clearly drafted and reviewed terms are essential to solidify the intentions of both parties.
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Image depicts, Manyara Matambanadzo, Solicitor, Commercial Team, HCR Law