Letter of Appointment as a Consultant or Consultancy Agreement
I have attached the format for Consultancy Agreement . You can make the necessary changes as required; all fields in bold need to be updated.
This agreement is made on the <date> day of <month year>, between Mr. /Ms. <Name> aged about <age> residing at <Address, City, Pin> [herein after referred to as Consultant] of the one part and <Name of company> having its registered office at <office address in full> [herein after referred to as the Company] of the second part.
This agreement has been entered into between the Consultant and the Company and will be effective from <effective date> for a period of ELEVEN MONTHS i.e. up to <end date>. This agreement supersedes all previous agreements.
Now this agreement witnesses the following terms and conditions agreed between the parties and are binding on both.
1. The consultant shall be engaged under the designation of <”Designation- Department”> based at <Location>.
2. The consultant will work on all working days during the tenure of the agreement, and in no circumstances may the consultant engage himself in any other business whatsoever whilst so engaged.
3. The consultant shall not indulge in any act or omission, which is likely to harm the reputation of the company. The consultant will be signing the Non Disclosure Agreement of the company.
4. The consultant shall be paid remuneration of Rs. <salary/-> < (salary in words)> per month excluding service tax on consultation on the succeeding <payroll date> of the calendar month during the agreement period.
5. The consultant shall be paid remuneration as under during the agreement period:
Mention all details of compensation to be paid; for e.g.:
- Medical coverage will be provided to the consultant and his family to the extent of Rs…../- p.a. for hospitalization expenses only, apart from Group personal accident & workmen’s compensation coverage.
- The variable salary component, termed as Performance Linked Pay (PLP) will be pegged at 20% of your annual remuneration, and will be based on metrics, covering the business, financial and performance parameters and will be based on a combination of-
a) The performance of the company as a whole (7%)
b) The performance of the Business vertical and the Region concerned (7%)
c) The performance of the Consultant (6%)
- Mobile expenses will be reimbursed as per company policy.
- Conveyance expenses will be reimbursed as per company policy.
6. The consultant shall be provided a company vehicle which is to be maintained as per company policy (if vehicle will be provided)
7. The consultant shall serve the company loyally, faithfully and diligently and shall at all times safeguard and protect the interest of the company.
8. The consultant shall not have any financial transaction with other consultants or customer/suppliers of the company.
9. The consultant shall not be entitled for benefits like gratuity, PF, and any other fringe benefits except mentioned in this agreement.
10. The consultant shall be entitled for <no. of leave days> days of leave per annum. Unavailed leave shall lapse at the end of the period of the contract.
11. Either party will be at liberty to terminate the agreement by giving one month’s notice in writing with or without assigning any reasons.
12. In the event of this agreement being terminated, the consultant shall repay the lump sum amount outstanding against him on any account whatsoever.
This agreement shall be enforceable by suit or otherwise at <location> only.
Signature of the Consultant