Q&As

What contractual arrangements are appropriate where a company wishes to outsource to an individual supplier who wishes to invoice for the services through his own company?

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Published on LexisPSL on 16/10/2017

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • What contractual arrangements are appropriate where a company wishes to outsource to an individual supplier who wishes to invoice for the services through his own company?

What contractual arrangements are appropriate where a company wishes to outsource to an individual supplier who wishes to invoice for the services through his own company?

Outsourcing refers to the delegation of a business activity by an organisation (the client) to an external entity (the supplier or service-provider) specialising in that activity. The activity in question will usually involve a number of staff, and may amount to a relevant transfer for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006). For further information, see our Outsourcing and joint ventures—overview.

See also Precedents:

  1. Outsourcing agreement—long form

  2. Outsourcing agreement—short form

By contrast, the term ‘consultancy agreement’ is used to describe an agreement:

  1. with an individual for the provision of the individual’s services as a consultant, or

  2. with a consultancy company for the provision of an individual’s services as a consultant

For further information, see Precedents:

  1. Consultancy agreement—company and individual—pro-client and related drafting notes

  2. Consultancy agreement—company and company—pro-client and related drafting notes

The parties will have an interest in ensuring that the consultancy agreement properly specifies the

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