What is an assignment agreement? Instead of a traditional work contract, the light entrepreneur and the client make an assignment agreement. It is important that both the light entrepreneur and the client understand the differences between an assignment agreement and an employment relationship. When drafting an assignment agreement, it is worthwhile to consider even the smallest factors that influence the assignment. The agreement must state at least the schedule and pricing of the light entrepreneur as well as the time and method of payment. To avoid possible misunderstandings, it is good to draft the agreement carefully.
A written agreement is always a better option than a verbal agreement. It is not always necessary to draft a written agreement, but we recommend that you do, however. This clarifies the rules for both parties. If the assignment agreement is made verbally, the light entrepreneur should note the most important information regarding the agreement and ask the client for a confirmation regarding the beginning and end of the agreement. Nonetheless, it is recommended to draft a written agreement so that the light entrepreneur and the client can focus on the essential.
Drafting an assignment agreement – what should the light entrepreneur take into account?
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Firstly, note the basic information of the parties, i.e. the client and the light entrepreneur: the name, business ID or the dates of birth.
Describe or make a list of the tasks according to the assignment.
The agreement might be for a fixed term, in which case the dates of the beginning and end must be stated in the agreement. If the agreement is valid until further notice, note the starting date. The assignment agreement may also be valid from the starting date until the assignment has been completed.
Approving the completed assignment
Note the criteria for an approved assignment, i.e. when the assignment has been completed according to the agreement.
Indicate whether the pricing is contract-specific or hourly. Note the billing price and the possible VAT.