Contract Hire Agreement Template for Canada

The Contract Hire Agreement is a crucial legal document used in Canadian business contexts when engaging independent contractors or consultants for specific projects or services. This agreement is essential for organizations seeking to formalize contractor relationships while maintaining compliance with Canadian federal and provincial regulations. It clearly distinguishes the contractor relationship from employment, addressing key aspects such as service delivery, compensation, tax obligations, and intellectual property rights. The document is particularly important given Canada's strict employment standards and the need to properly classify workers. It helps protect both parties' interests while ensuring clarity in responsibilities, deliverables, and terms of engagement.

1. Parties: Identification of the contracting company and the contractor, including full legal names and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of the services to be provided by the contractor

5. Term and Engagement: Duration of the contract and terms of engagement

6. Payment Terms: Compensation, payment schedule, expenses, and invoicing procedures

7. Contractor Obligations: Key responsibilities, deliverables, and performance standards

8. Company Obligations: Company's responsibilities including provision of necessary information and resources

9. Independent Contractor Status: Clear statement of independent contractor relationship and tax implications

10. Intellectual Property: Ownership and rights to work product and pre-existing IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and solicitation of employees/clients

13. Termination: Grounds for termination, notice periods, and consequences of termination

14. Insurance and Liability: Insurance requirements and limitation of liability provisions

15. General Provisions: Standard boilerplate clauses including governing law, notices, and amendment procedures