Service Agreement

This Service Agreement is a contract used to hire an individual or an organization to do a specific or defined tasks and provide various services to the client. This contract is entered to provide some useful tasks in return for remuneration.

This document outlines the particulars of the client and service provider, description of services, obligation of the parties, compensation structure, intellectual property ownership, confidentiality obligations of the parties, termination etc.

This document can be used by a client who requires the services of an independent contractor. Independent contractors include engineers, plumbers, technicians, and other construction workers for the construction of buildings; lawyers; press relations agencies; supplier of goods; I.T. specialists; interior designers/decorators, event planners and caterers for the planning of a wedding or an event; stock brokers; real estate agents; etc.

Note that the relationship between the client and the service provider is that of contract for service and not contract of service (as in between an employer and employee). Also note that the Employment Agreement is used by an employer who intends to hire an employee in a contract of service.

Under the Nigerian law, there are differences between an employee and a service provider, such as:

• The nature of the contract: The service provider's contract is a contract for service wherein as an independent contractor, he works independently and is not subject to the control of the contracting party (the client). While the employee's contract is a contract of service, such that the employee may be regarded as the servant of the employer. In this case the employer is liable for any acts or commission committed by the employee (who is acted under the authority of the employer) in the course of employment;

• Benefits: The service provider may not be entitled to these certain benefits such as pension, annual leave, maternity leave (for female employees) and sometimes paternity leave (for male employees). However, the client may choose to grant these benefits. But the employee is entitled to these benefits under the law.

• Skill/expertise: A service provider (being an independent contractor) is regarded as an expert in his/her own industry and as a result, may not be entitled to any training or tutelage. While an employee may undergo training and tutelage during the period of employment;

• Hours of work: A service provider may determine the particular time to work. While an employee does not determine when to work as there is a set time the employee must do his/her work. For example, an employee may be required to work from 9:00am to 5:00pm.
  
  

How to use this document

This document can be used by a person, company or any other organization that desires to use the services of an independent contractor/service provider.

After filling the form, the client must sign the document. If the client is a company, either two directors or one director and one secretary must sign the agreement. If the client is any other organization other than a company, the signature of one officer of the organization will be required. An officer here is a person who is in position of authority, such as a general manager, managing partner, CEO and any other person authorized to execute contracts on behalf of the organization.

Once the client has executed the document, the service provider must be given at least two copies of this document to sign. If the service provider is a company, either two directors or one director and one secretary must sign the agreement. If the service provider is any other organization other than a company, the signature of one officer of the organization will be required.

After both parties have executed the document, each party must keep at least one copy of the executed document for record purposes.

Applicable law

The Nigerian Labour Act is the applicable law. Also, the general rules of contract are applicable to this document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.