Consulting Commission Agreement Template for Australia

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Key Requirements PROMPT example:

Consulting Commission Agreement

"I need a Consulting Commission Agreement for hiring a cybersecurity consultant to perform quarterly security audits and implement security protocols for our financial services firm in Sydney, with the engagement starting March 1, 2025."

Document background
The Consulting Commission Agreement serves as a vital legal instrument in the Australian business environment, establishing the framework for professional consulting engagements. This document is essential when organizations require external expertise or specialized services on a project or ongoing basis. It comprehensively addresses key aspects including service scope, payment terms, intellectual property rights, confidentiality, and performance standards, while ensuring compliance with Australian legal requirements such as the Independent Contractors Act 2006 and relevant tax legislation. The agreement protects both parties' interests by clearly defining their respective rights and obligations, risk allocation, and dispute resolution mechanisms. It's particularly important for maintaining clear boundaries between consulting relationships and employment arrangements, helping organizations manage their external professional relationships effectively while minimizing legal and operational risks.
Suggested Sections

1. Parties: Identifies and provides full details of the contracting parties - the company/client and the consultant

2. Background: Explains the context of the agreement and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Appointment and Scope: Establishes the consultant's appointment and outlines the general scope of services

5. Term: Specifies the duration of the agreement, including start date and termination provisions

6. Consultant's Obligations: Details the consultant's duties, responsibilities, and service standards

7. Client's Obligations: Outlines the client's responsibilities and commitments to enable the consultant's work

8. Fees and Payment: Specifies the fee structure, payment terms, expenses, and invoicing requirements

9. Intellectual Property: Addresses ownership and usage rights of pre-existing and created intellectual property

10. Confidentiality: Defines confidential information and establishes protection obligations

11. Liability and Indemnity: Sets out liability limitations and indemnification obligations

12. Termination: Details circumstances and procedures for ending the agreement

13. General Provisions: Includes standard legal clauses such as notices, governing law, and dispute resolution

Optional Sections

1. Insurance: Details specific insurance requirements - include when the services involve significant risks or when required by industry standards

2. Non-Competition: Restricts the consultant from competing activities - include when protecting market position is crucial

3. Non-Solicitation: Prevents poaching of employees/clients - include for consultants with significant client/employee contact

4. Performance Metrics: Establishes KPIs and performance standards - include for long-term or complex engagements

5. Compliance with Policies: Requires adherence to client policies - include when consultant works closely with client's operations

6. Data Protection: Additional privacy and data handling requirements - include when dealing with sensitive data

7. Force Majeure: Addresses unforeseeable circumstances - include for long-term or high-value agreements

8. Assignment and Subcontracting: Controls ability to transfer rights or delegate duties - include for complex service arrangements

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of the consulting services to be provided

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment structures

3. Schedule 3 - Service Levels: Specific performance standards and metrics

4. Schedule 4 - Key Personnel: Details of key consultant team members and their roles

5. Appendix A - Required Reports: Templates or formats for required reporting

6. Appendix B - Client Policies: Relevant client policies and procedures

7. Appendix C - Project Timeline: Detailed project milestones and deadlines

8. Appendix D - Compliance Requirements: Specific regulatory or industry compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Information Technology

Management Consulting

Financial Services

Healthcare

Engineering

Construction

Education

Mining

Energy

Manufacturing

Telecommunications

Real Estate

Environmental Services

Legal Services

Business Advisory

Research and Development

Digital Marketing

Human Resources

Relevant Teams

Legal

Procurement

Finance

Human Resources

Operations

Risk and Compliance

Business Development

Commercial

Project Management Office

Contract Administration

Executive Leadership

Strategic Planning

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Procurement Manager

Project Manager

Business Development Manager

Operations Director

Human Resources Director

Department Head

Contract Administrator

Finance Manager

Risk Manager

Compliance Officer

Managing Director

Commercial Manager

General Manager

Business Unit Head

Professional Services Manager

Industries
Independent Contractors Act 2006: Federal legislation that governs independent contractor relationships and provides protections against unfair contracts. Essential for establishing the proper classification of the consultant.
Competition and Consumer Act 2010: Contains provisions relevant to business relationships, fair trading, and consumer protections. Particularly important for terms related to service guarantees and unfair contract terms.
Income Tax Assessment Act 1997: Governs taxation obligations for consultants and businesses, including GST requirements and income reporting obligations.
A New Tax System (Goods and Services Tax) Act 1999: Regulates GST obligations which are crucial for consulting agreements, especially regarding payment terms and tax invoicing requirements.
Privacy Act 1988: Regulates the handling of personal and business information, crucial for confidentiality clauses and data protection obligations.
Fair Work Act 2009: While primarily focused on employment relationships, certain provisions may be relevant to ensure the consulting agreement doesn't inadvertently create an employment relationship.
Australian Consumer Law: Part of the Competition and Consumer Act, specifically relevant for service provisions and unfair contract terms in business-to-business contexts.
Corporations Act 2001: Relevant for corporate governance requirements and obligations when dealing with company officers and corporate consultants.
Electronic Transactions Act 1999: Important for establishing the validity of electronic communications and signatures in the agreement.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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