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Member Update with Gayle Dube #5

A Growing Trend of Contracting Services 

A growing trend in our industry has been exploring new strategies to maximise efficiency and minimise costs. This has driven the popularity of outsourcing certain services to independent contractors. The need to diversify services ensures competitiveness in the market. Contracting services in the beauty and aesthetic industry has become increasingly popular as businesses seek to provide a comprehensive range of services under one roof.

By outsourcing services that are currently not provided, businesses can save on overhead costs associated with hiring full-time employees. This could be as simple as an aesthetic clinic contracting a massage therapist to complement their services. Outsourcing allows businesses to utilise specialised skills that may not be available in their clinic and it allows for a business to be more flexible and scale services up or down as needed.

The Importance of Independent Contract Agreements

When outsourcing services, it is crucial for businesses to establish clear and legally binding independent contract agreements with the contractors they engage. These agreements protect the interests of both parties and ensure a smooth and professional working relationship. Here are some considerations when contracting:

  • Clearly define the scope of work: The services to be provided should include specific deliverables, timelines, and other relevant details to ensure that both the business and contractor share a mutual understanding of expectations.
  • Payment Terms: Provide a clear outline of the payment structure that has been agreed upon. This should include the rates, payment schedule, and any additional expenses that have been agreed upon. It is important to specify whether payment will be made per project, per hour, or on a retainer basis.
  • Confidentiality and Non-Disclosure: It is important to add clauses that safeguard sensitive business information and trade secrets. Contractors should be bound by confidentiality obligations to prevent unauthorised disclosure or use of proprietary information.

Importance of Insurance Considerations:

When businesses outsource services to independent contractors, they need to consider insurance coverage to protect both parties interests. It's important to keep in mind that insurance coverage may change when working with contractors. 

Outsourcing services offer various advantages to businesses, such as cost-effectiveness, specialised expertise, and improved flexibility. It is essential for businesses to establish independent contract agreements and carefully consider insurance requirements. These measures not only protect the interests of both parties involved but also contribute to the well-being and safety of clients.

ABIC offers a comprehensive resource library for its members that houses a range of general contract templates that can be tailored to suit your business. We also offer extensive assistance through our Supplier Directory with listings from our industry partners who specialise in insurance and other essential business services.

Written by Gayle 
ABIC Facilitation Manager


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