Subcontractor Agreement (UK)
Updated 16 April 2026
This Subcontractor Agreement sets out the terms on which a contractor subcontracts its services through a self-employed subcontractor, confirming there is no employment or worker relationship. It defines fees, responsibilities, confidentiality, IP ownership, and termination rights, ensuring both parties are clear on their obligations while reducing misclassification risk.
Subcontractor Agreement
This agreement is for use between a company and an independent subcontractor, customisable for either indefinite or fixed-term arrangements.
The Independent Contractor Agreement template can be used as the prime agreement for this Subcontractor Agreement.
This agreement sets out the terms on which you will provide services to us as an independent subcontractor in connection with services we provide to our client(s). This is not a contract of employment and does not confer worker or employee status, or any other employment rights. The parties acknowledge that their intention is to create a commercial relationship between two independent businesses.
Parties and start date
This agreement is between:
“We/us/the Contractor”: [contractor name]
“You/the Subcontractor”: [subcontractor name]
Your engagement begins on [start date] and shall terminate in accordance with clause 10.
Prime Agreement
We have entered into an agreement with a client (the “Prime Agreement”). You acknowledge that the Services (as defined hereunder) you provide under this agreement support our obligations under the Prime Agreement. You agree to perform the Services in a manner that enables us to comply with the Prime Agreement.
We will share relevant information about the Prime Agreement with you to the extent necessary for you to perform the Services, subject to any confidentiality obligations.
Description of Services
You will provide the following services (the "Services"): [description of subcontractor services].
Your scope of work may be further described in a Statement of Work, project brief, or requirements derived from the Prime Agreement.
We may update or refine the scope of work by mutual agreement, but you retain control over how the Services are performed.
Optional:
You may, with our prior written consent (not to be unreasonably withheld), engage suitably qualified assistants to help you perform the Services, provided you remain responsible for their acts and omissions.
Flow-Down Obligations
You agree to comply with all obligations under the Prime Agreement that relate to the Services, including (where applicable):
confidentiality obligations
data protection requirements
security policies
service levels and deadlines
client policies and procedures
anti-bribery and anti-corruption obligations under the Bribery Act 2010
modern slavery obligations under the Modern Slavery Act 2015
We will provide you with relevant extracts or summaries of such obligations where necessary, and will notify you promptly of any changes that materially affect your obligations.
Fees
Your fee will be [subcontractor fee], exclusive of VAT. You will invoice us [frequency of invoice] and we will pay approved invoices within [deadline for invoice payment].
Unless otherwise agreed in writing, our obligation to pay you is not conditional on our receipt of payment from the client.
If you are VAT registered, you must issue invoices that comply with applicable HMRC requirements.
You are responsible for your own taxes, national insurance, and all statutory payments. You will indemnify us against any HMRC liability, costs, or penalties arising from your failure to comply with your tax obligations.
Place of work
Your primary work location is [place of work]. You may be required to attend our premises or client premises when reasonably necessary for the Services.
Where required:
you will cooperate with the client and its personnel
you will comply with all applicable site rules, security procedures, and access requirements
you will comply with reasonable client instructions relating to the Services
you will act professionally and not bring us or the client into disrepute
You have no authority to enter into contracts, make representations, or otherwise bind us or the client.
Service hours
Include the following for flexible work hours:
As a subcontractor, you control your own working hours. We may set deadlines or availability windows reasonably required for project delivery or client requirements.
Include the following for fixed hours:
As a subcontractor, you are expected to work the following hours or otherwise as we may request: [working hours].
Nothing in this clause creates employment or worker status.
Expenses
You are responsible for your own expenses unless we agree in writing to reimburse specific costs prior to those costs being incurred. Where expenses have been agreed in advance, you must submit claims with supporting receipts. Reimbursement will be made within 30 days of a valid claim.
No employment rights
You are not entitled to paid leave, sick pay, benefits, pension, or statutory payments. You are responsible for your own insurance, income protection, and time off.
Term and termination
Insert A for fixed-term or B for indefinite (delete the option that is not applicable):
A (Fixed-term):
This agreement begins on the start date and will automatically end on [end date] unless ended earlier. Either party may terminate early by giving notice.
B (Indefinite):
This agreement continues until terminated by either party giving [notice period] notice.
Either party may terminate immediately by written notice if the other party commits a material breach of this agreement and, where capable of remedy, fails to remedy that breach within 14 days of written notice, or becomes insolvent or ceases to carry on business.
Notwithstanding the foregoing, we may terminate immediately if:
you commit any act of fraud, gross misconduct, or dishonesty
the Prime Agreement is terminated or suspended
the client requires your removal (acting reasonably)
On termination, we will pay for Services properly performed up to the termination date. You will promptly return all confidential information (pursuant to Clause 14) and any property belonging to us or the client. Clauses that by their nature survive termination (including confidentiality, intellectual property, indemnity, and data protection) shall continue in full force and effect.
Issue resolution
If a dispute arises, you should raise it with [contact for disputes]. Both parties will try to resolve issues amicably within 30 days before taking formal action. Nothing in this clause prevents either party from seeking urgent injunctive relief from the courts.
Insurance
You must obtain and maintain throughout this agreement (and for 6 years following termination) adequate insurance with a reputable FCA-authorised insurer, including:
professional indemnity insurance, not less than £[professional indemnity insurance amount] per claim
public liability insurance, not less than £[public liability insurance amount] per claim
employers' liability insurance (if you employ any staff), not less than £5 million per claim, as required by the Employers' Liability (Compulsory Insurance) Act 1969
any other insurance appropriate for the Services.
We may request evidence of coverage.
Independent subcontractor status
You acknowledge and agree that:
you are self-employed and not an employee, worker, agent, or partner of ours
nothing creates employment, worker, agency, or partnership status
you may work for other clients (subject to conflicts)
you have no authority to bind the Company or the client
You must notify us promptly in writing if you become aware of any actual or potential conflict of interest between your obligations under this agreement and any other engagement. We make no warranty as to the amount of work that will be available to you, and you are not obliged to accept any work offered.
Confidentiality
You must not disclose any confidential information relating to us or our client(s), except as required for the Services. This includes all business, technical, financial, and client-related information, and any information that is designated as confidential or that a reasonable person would understand to be confidential.
You must return all confidential information on request or termination, and certify in writing that you have done so if requested. These obligations survive termination for a period of five years.
Intellectual Property
All intellectual property rights in the products of the Services shall vest in us upon creation. You assign all such rights to us with full title guarantee.
You grant us a perpetual, irrevocable, royalty-free licence to use any of your pre-existing intellectual property incorporated into the products of the Services, to the extent necessary to use and exploit such products.
You acknowledge that we may be required to assign or license such rights to our client under the Prime Agreement.
Data protection
Where you process personal data:
you will comply with UK data protection law
you will follow our written instructions
you will implement appropriate security measures
you will not engage sub-processors without our prior written consent
you will notify us without undue delay (and in any event 24 hours) of any personal data breach
you will assist us in responding to data subject requests and in complying with our legal obligations
on termination, you will delete or return all personal data as we direct
You agree to comply with any additional data protection requirements flowing down from the Prime Agreement.
Warranties
You warrant that:
you have full power and authority to enter into this agreement
you are free to enter into this agreement and will not be in breach of any obligation to any third party by doing so
your performance will comply with all applicable laws and client requirements
your work will not infringe third-party rights
you maintain the insurance required under this agreement
Indemnity
You indemnify us against all losses, costs, claims, and liabilities arising from:
your breach of this agreement
your negligence or misconduct
any claim that the products of the Services infringe third-party rights
any failure to comply with obligations flowing from the Prime Agreement
any failure to comply with data protection law or any personal data breach caused by you
any HMRC claim arising from your failure to meet your tax obligations
We will promptly notify you of any claim and will not make admissions of liability without your consent (not to be unreasonably withheld).
Limitation of liability
Our total liability to you under or in connection with this agreement is limited to the fees paid to you for the Services in the 12 months immediately preceding the date the claim arose. Neither party is liable to the other for any indirect or consequential loss, loss of profit, or loss of anticipated savings.
Nothing limits liability for fraud, death, or personal injury caused by negligence.
Anti-bribery and modern slavery
You must not engage in any conduct that would constitute an offence under the Bribery Act 2010. You must comply with the Modern Slavery Act 2015 and take reasonable steps to ensure there is no slavery or human trafficking in your supply chain. You must promptly report to us any request for any undue financial advantage made to you in connection with this agreement.
Force majeure
Neither party will be in breach of this agreement or liable for any failure or delay in performance caused by circumstances beyond their reasonable control. A party relying on this clause must notify the other promptly and use reasonable endeavours to mitigate the impact. If the situation continues for more than 30 days, either party may terminate on 14 days' written notice.
Health and safety
You must comply with all applicable health and safety legislation and with our and the client’s health and safety requirements when performing the Services. You must promptly report to us any accidents, incidents, or near misses arising in connection with the Services.
General
This agreement (together with any Statements of Work) is the entire agreement between the parties on this subject and supersedes all prior agreements and understandings. No variation is effective unless agreed in writing by both parties. If any provision is found o be unenforceable, the remaining provisions continue in full force and effect. This agreement may not be assigned by you without our prior written consent. Nothing in this agreement confers rights on third parties under the Contracts (Rights of Third Parties) Act 1999, except that the client may enforce terms that expressly benefit it.
Governing law and jurisdiction
This agreement is governed by the law of England and Wales, and disputes will be subject to the exclusive jurisdiction of the courts of England and Wales.
Please sign and return to confirm acceptance.
Subcontractor signature:
Name:
Date:
Signed for and on behalf of the Contractor:
Name:
Date:
About this template
What is this template?
Subcontractor Agreement (UK) is a free, ready-to-use Service Agreements template you can open, customize, and download on GitLaw. It gives you a professionally structured starting point, so you never have to draft from a blank page. The wording is plain and modern, organized into clear sections that are easy to read, edit, and adapt to your own situation before you share or sign it.
When should you use it?
Reach for this Service Agreements template whenever you need a reliable agreement quickly and want to be sure the essentials are covered. It suits individuals, freelancers, startups, and established businesses alike. Instead of paying for a document drafted from scratch, you can start here, tailor the details to your arrangement, and have a polished draft ready in minutes. This version is drafted with England & Wales in mind, though you should always review the final wording against the laws that apply to you.
What's typically included?
A well-drafted Service Agreements usually sets out the parties involved, the scope of the agreement, and each side's rights and responsibilities. Expect sections covering key terms and definitions, how long the agreement lasts, how it can be ended, and what happens if something goes wrong. This template brings those building blocks together in a sensible order, so you can focus on the specifics rather than worrying about what to include. Open it to read the full document, then sign up to edit, negotiate, and e-sign it directly in GitLaw.