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A Consultancy Agreement sets out the terms when a consultant provides professional services to a client in Austria. It creates clear boundaries between independent consulting work and regular employment, which is crucial under Austrian labor law (Arbeitsrecht).

The agreement spells out key details like payment terms, project scope, and confidentiality rules. It protects both parties by defining intellectual property rights, limiting liability, and ensuring compliance with Austrian freelance regulations. Austrian businesses often use these contracts for IT projects, management advice, and technical expertise where specialized knowledge is needed on a temporary basis.

Use a Consultancy Agreement when bringing in external expertise for specific projects or specialized work in Austria. This applies particularly for IT implementations, strategic advisory work, technical consulting, or when you need temporary professional support without creating an employment relationship.

Austrian law requires clear documentation to distinguish freelance consultants from employees. Having this agreement in place protects both parties from misclassification risks under labor laws, defines project deliverables clearly, and establishes important boundaries around intellectual property, confidentiality, and liability limits. It's especially important for projects lasting longer than three months or involving sensitive company information.

• Consultant Retainer Agreement: For ongoing advisory services with regular monthly fees, popular in legal and financial consulting
• Business Consulting Contract: Comprehensive agreement for complex business transformation projects
• Simple Consulting Contract: Streamlined version for short-term or straightforward consulting engagements
• Management Consulting Contract: Specialized for strategic and operational advisory services
• Consultant Non Disclosure Agreement: Additional protection for sensitive information sharing during consulting projects

• Independent Consultants: Professional experts offering specialized services across industries like IT, management, or engineering under Austrian freelance regulations
• Client Companies: Organizations seeking external expertise, from startups to large corporations, who need specialized skills without permanent hiring
• Legal Counsel: In-house or external lawyers who review and adapt agreements to comply with Austrian labor and contract law
• Project Managers: Oversee the consulting relationship and ensure deliverables match agreement terms
• Finance Departments: Handle payment terms, invoicing, and tax compliance aspects of consulting arrangements

• Scope Definition: Clearly outline project deliverables, timelines, and expected outcomes in specific terms
• Party Details: Gather full legal names, business addresses, and registration numbers of both consultant and client
• Payment Structure: Define fees, payment schedule, expenses policy, and any performance-based incentives
• Project Timeline: Set clear start and end dates, milestone deadlines, and review periods
• Legal Requirements: Check Austrian freelance regulations and tax implications for both parties
• Intellectual Property: Determine ownership rights for project outputs and pre-existing materials
• Confidentiality Needs: Identify sensitive information requiring protection during the engagement

• Party Identification: Complete legal names, addresses, and registration numbers of consultant and client
• Service Description: Detailed scope of work, deliverables, and performance standards
• Term and Termination: Clear project duration, notice periods, and conditions for ending the agreement
• Compensation Terms: Fee structure, payment schedule, and expense reimbursement policies
• Independent Contractor Status: Clear distinction from employment relationship under Austrian labor law
• Intellectual Property Rights: Ownership and usage rights of work products
• Confidentiality Provisions: Protection of business secrets and sensitive information
• Liability and Insurance: Risk allocation and required coverage levels

A Consultancy Agreement differs significantly from a Director Agreement in several key aspects under Austrian law. While both involve professional services, their legal framework and implications are quite distinct.

• Legal Status: Consultants work as independent contractors, while directors are corporate officers with specific duties under Austrian company law (GmbHG)
• Duration and Commitment: Consultancy agreements typically cover specific projects or periods, whereas director agreements establish ongoing corporate governance roles
• Liability Scope: Directors face broader fiduciary responsibilities and personal liability under corporate law, while consultants' liability is usually limited to their specific deliverables
• Decision Authority: Directors have legal power to bind the company, but consultants can only make recommendations
• Compensation Structure: Director payments must comply with corporate governance rules, while consulting fees are more flexible and project-based