When a client hires a consultant, they’re not hiring an employee. An employee works at the direction of the employer who provides working hours, methods, and tools for the employee to fulfill their role. Employees typically only work for their employer and carry out their work themselves.
On the other hand, a consultant works as a freelancer or independent contractor. Their work is autonomous and during the hours the consultants set themselves. Typically, a consultant will have more than one client and can hire subcontractors to carry out their contractual obligations.
In LawDepot’s Consulting Agreement, the following clauses outline the contractor status of the consultant:
A right of substitution allows the consultant to hire a subcontractor to meet the obligations of their services.
Autonomy for the consultant who has full control over working time, methods, and decision-making
Equipment the consultant will provide, such as tools, materials, and supplies
No exclusivity for consultants as they do not work exclusively for the client and may seek out opportunities with other clients
An indemnity clause that protects both parties from liability under applicable provincial laws
A return of property clause that requires the consultant to return any of the client’s property, documents, records, etc., at the end of the contract