Daily Archives: March 11, 2009

Whose Contract?

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Dear Gritty VA:

I have obtained a new client and was about to send them my standard Virtual Assistant contract when they sent me their independent contractor agreement! Do Virtual Assistants use their own agreement or the client’s? Help! –TS

Great question and I’m glad you’ve asked because there are a lot of different aspects here I’d like to discuss.

First to answer your main question… No, you do not sign a client’s contract. You aren’t hiring them; they are hiring you. Your business, your contract.

A contract is not only a legally binding document, but it also serves to make sure everyone knows what the expectations and obligations both parties have to each other, as well as what happens when those agreements are not kept. For example, late or non-payment on the part of the client may result in immediate work stoppage on the part of the Virtual Assistant.

Your written contract also helps everyone remember what they’ve agreed to. People tend to “forget” things when it’s convenient or self-serving. A written contract helps keep everyone honest and their “memory” intact.

Your question also brings up the red flag that this client may not understand the nature of your relationship. I think the term “independent contractor” has a lot to do with this continuing misunderstanding.

(By the way, I’ve put that term on my X list and no longer use it in any way, shape or form when I’m educating people about Virtual Assistance.)

There are only two classifications in this world (at least in the U.S. and those countries with similar laws). You’re either a business or an employee. There is no third classification. Independent contractor is just another word for business owner–one who happens to be a self-employed professional service provider.

And a business is a business, regardless of whether you’re a big corporation or a self-employed solopreneur.

So it’s going to be really important for you to have a conversation with this client and make sure they understand that they aren’t hiring an employee or telecommuter.

As a business, it’s your place to provide the contacts. It’s you who has more at stake in the relationship if things don’t go well. A client can always take their business elsewhere. But you have much more liability involved and interests that need to be protected. So your business, your contract.

That’s just standard business procedure. Don’t be afraid to educate them about this. And make sure they understand they are hiring a professional, not an employee. You don’t want to work with the client who doesn’t get those things.

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