All Countries
Independent Contractor Severance Agreement

Independent Contractor Severance Agreement Template for Australia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Independent Contractor Severance Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Independent Contractor Severance Agreement

"I need an Independent Contractor Severance Agreement for terminating a software development contractor who's been working on our fintech project for 3 years, including provisions for code handover and ongoing maintenance support until March 2025."

Celebrated by
Collaborations with
Investors
Document background
The Independent Contractor Severance Agreement is essential for Australian businesses seeking to formally conclude contractor relationships while managing associated risks and obligations. This document is typically used when ending a contractor engagement that requires more than a simple notice of termination, particularly where there are outstanding payments, ongoing obligations, or potential disputes to address. The agreement ensures compliance with Australian legislation, including the Independent Contractors Act 2006 (Cth) and relevant state laws. It covers crucial elements such as final compensation, intellectual property rights, confidentiality obligations, and mutual releases, while providing a clear framework for the separation process. This document is particularly important for protecting both parties' interests and preventing future disputes by clearly documenting the terms of separation.
Suggested Sections

1. Parties: Identification of the principal company and the independent contractor, including ACN/ABN and registered addresses

2. Background: Brief history of the contractor relationship, reference to original agreement, and context for the severance

3. Definitions: Key terms used throughout the agreement, including references to original contract terms where relevant

4. Termination Date: Clear specification of when the contractor relationship will end or has ended

5. Final Payment: Details of all final payments, including outstanding invoices, termination payments, and timing

6. Mutual Release: Release of claims and obligations between parties, subject to terms of this agreement

7. Return of Property: Requirements for return of company property, documents, and materials

8. Continuing Obligations: Surviving terms from original agreement such as confidentiality and intellectual property

9. Tax Matters: Responsibility for taxes, superannuation, and other statutory payments

10. Confidentiality: Obligations regarding confidentiality of the severance agreement and ongoing confidentiality duties

11. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and severability

Optional Sections

1. Transition Services: Used when contractor needs to provide handover or complete specific tasks before departure

2. Non-Disparagement: Include when parties wish to ensure mutual professional courtesy post-termination

3. References: Include when parties agree on the nature and content of future references

4. Ongoing Projects: Used when there are specific arrangements for incomplete projects or work

5. Post-Termination Restraints: Include when new or modified restraint of trade provisions are required

6. Dispute Resolution: Include detailed dispute resolution procedures for high-value or complex arrangements

7. Third Party Rights: Include when termination affects rights or obligations with third parties

8. Insurance: Include when specific insurance obligations continue post-termination

Suggested Schedules

1. Schedule 1 - Payment Details: Detailed breakdown of all final payments, including calculation methods

2. Schedule 2 - Company Property: Itemized list of company property to be returned

3. Schedule 3 - Ongoing Projects: List and status of any projects requiring transition or completion

4. Schedule 4 - Original Agreement: Copy of the original contractor agreement for reference

5. Schedule 5 - Release Deed: Detailed deed of release covering all claims and obligations

6. Appendix A - Handover Documentation: Template or requirements for handover documentation

7. Appendix B - Confidential Information: Specific list of confidential information and handling 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

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

Technology

Construction

Professional Services

Mining

Healthcare

Education

Media and Entertainment

Financial Services

Manufacturing

Consulting

Real Estate

Engineering

Relevant Teams

Legal

Human Resources

Procurement

Finance

Operations

Risk and Compliance

Project Management Office

Executive Leadership

Relevant Roles

Chief Executive Officer

Human Resources Director

Legal Counsel

Procurement Manager

Project Manager

Operations Director

Finance Manager

Risk Manager

Compliance Officer

Department Head

Contract Administrator

Business Unit Manager

Industries
Independent Contractors Act 2006 (Cth): Primary federal legislation governing independent contractor relationships in Australia, including unfair contracts provisions and rights of contractors
Competition and Consumer Act 2010 (Cth): Relevant for restraint of trade provisions and ensuring the agreement doesn't contain unfair contract terms or anti-competitive provisions
Fair Work Act 2009 (Cth): Important for ensuring the arrangement is genuinely an independent contractor relationship and not disguised employment (sham contracting provisions)
Income Tax Assessment Act 1997 (Cth): Governs taxation implications of contractor payments and termination payments
A New Tax System (Goods and Services Tax) Act 1999 (Cth): Relevant for GST obligations and considerations in contractor payments
Corporations Act 2001 (Cth): May be relevant if the contractor is operating through a company structure
Privacy Act 1988 (Cth): Relevant for handling personal information and confidentiality provisions
Australian Contract Law: Common law principles governing contract formation, termination, and enforcement
State-specific Fair Trading Acts: State-based legislation governing business conduct and consumer protection that may affect contractor relationships
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

Find the exact document you need

Severance Offer Letter

An Australian-compliant formal document outlining severance terms, conditions, and compensation offered to an employee upon employment termination.

find out more

Non Disparagement Employment Agreement

An Australian employment agreement establishing non-disparagement obligations between employer and employee, governed by Australian employment law including the Fair Work Act 2009.

find out more

Executive Severance Agreement

An Australian law agreement defining terms and conditions for executive employment separation, including severance benefits and post-employment obligations.

find out more

Executive Separation Agreement

An Australian law-governed agreement setting out terms and conditions for executive employment separation, including financial settlements, obligations, and mutual releases.

find out more

Severance Letter

An Australian employment document that formally communicates and documents the terms of an employee's separation from employment, including termination details and entitlements.

find out more

Mutual Termination Agreement Employment

An Australian law-compliant agreement documenting the mutual consent to terminate employment, including termination terms and final entitlements.

find out more

Separation And Severance Agreement

An Australian law-governed agreement that formalizes employee departure terms, including severance payments, obligations, and mutual releases.

find out more

Independent Contractor Severance Agreement

An Australian law-governed agreement that formalizes the termination of an independent contractor relationship, including separation terms and mutual obligations.

find out more

Severance Contract

An Australian law-compliant agreement that formalizes employment termination terms, including severance payments and mutual obligations between employer and employee.

find out more

Voluntary Severance Agreement

An Australian law-compliant agreement documenting voluntary employment termination terms, including severance payments and mutual obligations between employer and employee.

find out more

Mutual Severance Agreement

An Australian-law governed agreement establishing mutually agreed terms for employment termination, including severance payments and releases.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.