![]() ![]() the Agent should be responsible for paying his or her own insurance and taxes.the Agent should be allowed to engage third parties (such as employees or subcontractors) to assist with providing the services.if possible, the Agent should be paid for results (for example, a fee per sale) rather than being paid for time worked (for example, an hourly rate).if possible, the Agent should be hired to produce a result (for example, sell a certain number of products) rather than to provide a particular service (for example, be present at the sales stand for a certain number of hours).the Agent should not be under the Principal's control in terms of the manner of performing the work.if possible, the agreement should be consistent with it being a contract of service (rather than an employment contract).In order to avoid creating an employment relationship, the parties may wish to consider the following: In an employment relationship, the employer has additional obligations including such things as workers' compensation, superannuation, annual leave, sick leave and long service leave. It is important that when parties are creating the agency relationship, they do not create an employment relationship. The relationship between a principal and an agent is different from that between an employer and an employee. ![]() They clarify the terms between the agent and principal, including the rights and obligations of each party.Īn Agency Agreement is different from an Employment Agreement. Within this Agency Agreement, the principal and agent outline their expectations for the agency. However in some other cases, this involves the agent simply being authorised to make representations on behalf of the principal. In many cases the agent is given the authority to create or affect legal relations between the principal and third parties. With this agreement, the principal gives the agent the authority or capacity to do certain things on behalf of the principal. An Agency Agreement, also sometimes called an Agent Agreement, is a document between two parties, a principal, and an agent. ![]()
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