If you are an early stage Psychologist, Counsellor or Therapist, you may face unique challenges in negotiating your contract as an independent contractor.
Keep in mind that most practices will have a standard form contract. The onus is on you as the practitioner to ensure that the contract works for you.
Understand Your Value
Before entering negotiations, clearly assess your expertise, unique experience, and the value you bring to the table. Research industry standards for compensation and benefits to establish a baseline for your expectations.
You should discuss with other practitioners the market and benchmark expectation for your career stage. You should also consider the industry standard inclusions for your profession.
Before you commence negotiating you should know your preferred remuneration and your minimum acceptable rate for your work.
Understand Your Rights
Australia has recently enacted the Unfair Contract Terms regime which applies to all independent contractor agreements entered after 1 August 2024 for annual value of less than $174,000.
You have the right after the contract commences to apply to the Fair Work Commission to set aside and/or vary an unfair contract term. Knowing this means you should be in a position to identify and negotiate out unfair terms before the contract commences.
Read the Contract and Consider the Practical Implications
Don’t simply read the contract, read it with a specific view to understanding how it will work in all practicality.
- Consider what might happen if you wish to leave. Does the contract permit you to engage in work within a close proximity? Will this be a problem for you?
- Consider the costs transferred to you. Independent contractor agreements notorious for transferring administration, resource and payment processing fees to practitioners.
- What is the mechanism for ending the agreement? Are there equal rights to both parties or does one party hold considerable greater power in the relationship.
- Consider the contract will permit you to protect your professional standing? If there are terms that relinquish your notes or your client material, will you be able to respond to a complaint?
- Where are the hidden discretions reserved to the practice. DO they have the right to vary remuneration or impose hidden costs?
- Are there any hidden clawbacks or costs to you if you terminate the contract early?
- Think practically about the costs that delivering the contract may have on you. This includes upfront and ongoing costs.
Read The Contract And Consider The Obligations Imposed On You
In addition you should be attentive to the additional costs that are transferred to you as an independent contractor
- Are all the insurances reasonable? You may need to check with a lawyer.
- Are there additional requirements on you before you get paid? While an invoice might be necessary, additional steps probably wouldn’t be.
- Are there likely additional costs or administrative tasks transferred to you in practice.
Consider the Intellectual Property Implications
Its increasingly common for independent contractor agreements to include extensive and onerous intellectual property clauses.
As you read through the Intellectual Property clauses consider:
- Will I be producing content in this role I might need in my next role?
- If you are an Academic, do I intend to undertake further research and potentially publish in this area?
- If you have an area of expertise, do I want to build a brand with this material outside of this role?
It may be suitable to ‘carve out’ particular topics you wish to keep as your own intellectual property.
If in doubt, have a lawyer review your contract. A lawyer will provide specialised advice on whether the contract is fit for service.
Understand that the Contract sets the terms of the Relationship
The contract is not the relationship but it will define and establish the norms of the relationship. If you don’t negotiate out the clauses to you that are unfavorable when you first receive the contract it will become increasingly difficult as time goes by to change those clauses.
The contract is in place to ensure the relationship works. In negotiation with a practice, this should always be your primary point of reference. A clear and well-drafted contract means a healthy working relationship. A fair contract means you are likely to have a long-term working relationship.
With this in mind, building a good relationship from the start of your professional relationship means that when it comes time to negotiate contract terms you will be in a far more favorable position. Likewise, negotiating to hard can damage the underlying relationship. Conversely, a practice that refuses to negotiate or to compromise on fairer terms are unlikely to be your partners in a long term professional relationship. Such a refusal ought to be a significant red flag.
Whatever the case, make sure you record any contract variations. Remember, from a dispute perspective an unwritten contract variation is exceptionally difficult to prove.
