A therapy agreement (alternatively known as a client agreement or a counselling contract) outlines the obligations and expectations of both parties before commencing therapy and helps to establish a safe and ethical therapeutic relationship.
Other terms for this agreement could be:
- Psychotherapy Contract;
- Counselling Client Agreement or Counselling Client Contract; or,
- Mental Health Therapist Agreement or Contract.
If you are a psychologist, it is highly likely that your peak body will provide you with a template agreement that covers the items required by your professional insurance.
However, for counsellors, psychotherapists, social workers, or other associated professions, you will very likely need to prepare your own therapy agreement. While this article sets out the high-level considerations for such an agreement, it is important to note that every therapy agreement needs to take into your specific needs and concerns.
Terms that Should be included in a Therapy Agreement
1. Collection and Storage of Confidential and Sensitive Personal Information
Therapy involves the collection of sensitive information (a defined term under the Privacy Act 1988 (Cth), and it’s critical to outline how this information will be handled by the Practice. Your agreement should:
- Explain what types of personal information will be collected (e.g., medical history, mental health records, contact details).
- Specify how this information will be stored securely, in compliance with the Australian Privacy Principles (APPs) under the Privacy Act 1988 (Cth).
- Clarify who will have access to the information (e.g., the therapist, administrative staff) and under what circumstances it may be disclosed (e.g., legal obligations, safety concerns).
- Inform clients of their right to access and correct their personal information.
2. Cancellation Policy
A clear cancellation policy helps manage expectations and ensures the therapist’s time is respected. Include:
- The required notice period for cancellations (e.g., 24 or 48 hours).
- Any fees charged for late cancellations or missed sessions.
- Exceptions to the policy (e.g., emergencies, illness).
3. Credit Card Storage
If the practice stores credit card information for payment purposes, the agreement should:
- Explain how this information will be stored securely, in compliance with the APPs and payment card industry standards.
- Specify whether the information will be used for automatic billing or recurring payments.
- Inform clients of their right to update or remove their payment details.
4. Consent and Terms of Use of Practice Management Software
Many therapy practices use practice management software to streamline scheduling, billing, and record-keeping. The agreement should:
- Describe the software being used and its purpose (e.g., client records, appointment scheduling).
- Confirm that the software complies with Australian privacy laws and data security standards.
- Obtain the client’s consent to store their personal information in the software.
5. Consent to Seek Release of Personal Information from Other Service Providers
Therapists often need to collaborate with other healthcare providers to ensure comprehensive care. The agreement should:
- Explain the circumstances under which the therapist may seek information from other providers (e.g., GP, psychiatrist).
- Include a consent form for the client to authorise the release of their personal information to the therapist.
- Assure clients that their information will only be shared with their written consent unless required by law.
6. Consent and Terms of Use of AI for Note-Taking and Assessment Purposes
With the increasing use of AI tools in healthcare, it’s important to address their role in therapy as well as meeting your privacy obligations. The agreement should:
- Disclose if AI tools are used for note-taking, session summarisation, or assessment purposes.
- Explain how the AI tool works, what data it processes, and how it complies with Australian privacy laws.
- Obtain the client’s consent to use AI tools and assure them that human oversight will be maintained.
- Address any risks or limitations of using AI and how these will be mitigated.
7. Informed Consent for Therapeutic Treatment
Informed consent is a cornerstone of ethical practice. The agreement should:
- Explain the nature and goals of the therapy being offered.
- Outline the potential benefits, risks, and limitations of the treatment.
- Describe the therapist’s qualifications and approach to therapy.
- Confirm that the client has the right to ask questions, withdraw consent, or seek a second opinion at any time.
8. Payment Terms
Clear payment terms help avoid misunderstandings and ensure smooth financial transactions. Include:
- The cost of sessions and any additional fees (e.g., reports, phone consultations).
- Accepted payment methods (e.g., credit card, bank transfer).
- Payment due dates and any late payment policies.
- Whether the practice offers Medicare rebates, private health insurance claims fix or sliding scale fees.
Why a Therapy Agreement Matters
A therapy agreement is more than just a formality: it’s the basis for a transparent, ethical, and long-term effective therapeutic relationship. By including the key term outlined above, therapists can:
- Build trust with clients by demonstrating professionalism and accountability at the point of engagement.
- Protect client confidentiality and ensure compliance with Australian Privacy Principles.
- Set clear expectations to minimise misunderstandings and establish a protocol for the relationship.
- Foster a collaborative environment where clients feel informed and empowered.
For clients, a well-drafted agreement provides clarity about their rights, responsibilities, and the therapeutic process, helping them feel secure and supported.
Therapas provides a template Counselling Client Agreement (LINK) that is suitable for Counsellors, Psychotherapists, and Social Workers providing therapy services.
