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Hourly Rate Agreement

Hourly Rate Agreement Template for Australia

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Key Requirements PROMPT example:

Hourly Rate Agreement

"I need an Hourly Rate Agreement for engaging an IT consultant in Sydney, with a rate of $150 per hour, minimum 20 hours per week commitment, starting March 1, 2025, with specific clauses for intellectual property protection and remote work arrangements."

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Document background
This Hourly Rate Agreement template is designed for use in Australian jurisdictions where services are provided on an hourly rate basis. It is particularly suitable for professional services, consulting arrangements, and temporary staffing solutions where work is charged based on time spent rather than fixed deliverables. The agreement incorporates essential elements required under Australian law, including Fair Work Act considerations and contractor provisions. This document should be used when engaging service providers who will bill for their time on an hourly basis, whether they are individual contractors, consultants, or professional service firms. The agreement includes comprehensive provisions for rate calculation, payment terms, service scope, and performance expectations, while maintaining compliance with relevant Australian legislation and business practices.
Suggested Sections

1. Parties: Identifies and provides full details of all parties to the agreement

2. Background: Provides context for the agreement and outlines the intention of the parties to enter into a service arrangement

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

4. Scope of Services: Detailed description of the services to be provided, including any deliverables and performance standards

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

6. Payment Terms: Details the hourly rate, payment schedule, invoicing requirements, and payment methods

7. Obligations of Service Provider: Lists the key responsibilities and obligations of the service provider

8. Obligations of Client: Outlines the client's responsibilities and obligations

9. Work Hours and Availability: Specifies expected working hours, availability, and notice requirements for schedule changes

10. Expenses and Reimbursement: Details which expenses are reimbursable and the process for claiming expenses

11. Intellectual Property: Addresses ownership and usage rights of any IP created during the engagement

12. Confidentiality: Protects confidential information of both parties

13. Termination: Specifies how the agreement can be terminated by either party and the consequences of termination

14. General Provisions: Standard legal provisions including governing law, notices, and entire agreement

Optional Sections

1. Insurance: Required when specific insurance coverage needs to be maintained by either party

2. Non-Compete: Optional clause restricting work with competitors, used when sensitive industry knowledge is involved

3. Work Location: Include when specific requirements about work location (office, remote, hybrid) need to be specified

4. Equipment and Resources: Include when there are specific provisions about who provides work equipment and resources

5. Performance Reviews: Include when regular performance evaluations are part of the arrangement

6. Minimum Hours Guarantee: Optional section when there's a minimum number of hours guaranteed per period

7. Leave Arrangements: Include for longer-term arrangements where leave needs to be addressed

8. Dispute Resolution: Detailed dispute resolution procedures, recommended for higher-value or complex arrangements

Suggested Schedules

1. Schedule 1 - Rate Card: Detailed breakdown of hourly rates, including any variations for different types of work or times

2. Schedule 2 - Service Description: Detailed description of services, including specific tasks, deliverables, and quality standards

3. Schedule 3 - Key Personnel: Details of key personnel who will be providing the services, if applicable

4. Schedule 4 - Special Conditions: Any special terms or conditions specific to this engagement

5. Appendix A - Expense Policy: Details of what expenses can be claimed and the process for reimbursement

6. Appendix B - Time Recording Requirements: Specifications for how time should be recorded and reported

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Professional Services

Information Technology

Consulting

Healthcare

Engineering

Education

Financial Services

Creative Industries

Construction

Legal Services

Business Advisory

Marketing and Communications

Relevant Teams

Legal

Human Resources

Procurement

Finance

Operations

Project Management Office

Information Technology

Professional Services

Consulting

Relevant Roles

Consultant

Professional Contractor

Temporary Staff

Freelancer

Project Manager

Technical Specialist

Business Analyst

Developer

Designer

Legal Consultant

Financial Advisor

Healthcare Professional

Engineering Consultant

Training Specialist

Marketing Consultant

Industries
Fair Work Act 2009 (Cth): Primary legislation governing employment relationships in Australia, covering minimum employment standards, modern awards, enterprise agreements, and unfair dismissal provisions
Independent Contractors Act 2006 (Cth): Relevant for determining whether the relationship is truly contractor-based rather than employment, and protecting contractors from unfair contracts
Income Tax Assessment Act 1997 (Cth): Covers taxation obligations for both parties, including PAYG withholding if applicable
Superannuation Guarantee (Administration) Act 1992 (Cth): Mandates superannuation contributions for employees and eligible contractors
Work Health and Safety Act 2011 (Cth): Outlines workplace safety obligations and responsibilities for both parties
Privacy Act 1988 (Cth): Governs the collection, use, and storage of personal information in the context of the working relationship
Competition and Consumer Act 2010 (Cth): Includes Australian Consumer Law provisions relevant to service agreements and unfair contract terms
State-specific Fair Trading Acts: State-based legislation governing trading and business conduct that may affect service agreements
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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