Wondering what to include in your virtual assistant contract?
In this article, we’ll be going through the importance, key elements, common pitfalls, and more related to VA contracting.
Why You Need a VA Contract
Legal Protection for Both Parties
Let’s face it, contracts tend to carry a negative connotation. The reason contracts are necessary stems from the fact that humans are flawed. While there are fair and honest people out there, contracts lessen the likelihood of malice or neglect occurring.
When written well, this legally binding agreement protects both parties’ interests. It deters unfair treatment on either side through clauses and conditions enforceable in a court of law.
Clarity in Roles and Responsibilities
The positive thing about contracts is that they provide clarity and structure. Contracts outline the specific tasks and deliverables expected of each party as well as timelines.
They provide a framework and boundaries for the working agreement to prevent job creep.
Key Elements of a Virtual Assistant Contract
Identification of Parties Involved
This part names the entities entering into the contract. For companies, this includes the full business name, location, and entity type (partnership, LLC, etc.). For individuals, including those considered sole proprietors, they list their full government name.
Scope of Work and Responsibilities
This is the clause that delineates the services the VA is to carry out.
This includes a detailed description of the specific duties and expected outcomes. This can also include milestones and specific deadlines for deliverables.
Payment Terms
Clearly laying out payment terms is crucial. This is an area that can put a lot of strain on professional partnerships.
These terms include:
- Payment dates
- Frequency of payments
- Compensation rates
- Payment methods (PayPal, Stripe, cash, bank transfer etc )
- Special conditions for late payments, additional hours, and additional virtual assistant services
Confidentiality and Non-Disclosure Agreements (NDAs)
Data security is a big concern for many people when working with a virtual assistant. You don’t want company/trade secrets or customer data leaking to third parties, competitors, or criminals.
If you’re working with a VA, these clauses offer you a level of protection that deters the spilling of company secrets.
Intellectual Property Rights
When working with creatives like graphic designers, writers, or when outsourcing tasks like video editing, Intellectual Property protection is a real concern.
It’s important to specify ownership and rights to use said work during and after the work agreement ends. Specifying what you can do with their designs or other outputs prevents misunderstanding and misuse.
Termination Clause
This clause provides certain conditions that, if not met, can be grounds for ending the working relationship prematurely.
In the clause, you can specify termination due to failure to meet just one or multiple conditions. Here you must also specify a notice period.
This protects you, the employer, from any claims of wrongful termination. This also keeps you accountable to fulfill your end of the deal.
Dispute Resolution
Dispute resolution is the process where both parties try to find a mutually acceptable compromise to save the working relationship. A dispute resolution clause should outline what to do in the event of conflict. One or more parties’ failure to adhere to the contract terms usually brings this tension.
This process involves hiring a mutually agreed upon third party to serve as a mediator. Arbitration and trial may be necessary if they cannot come to an agreement.
A clause like this is important because it saves you a lot of waiting for drawn out litigation processes. Included in this clause are the specific jurisdictions, how to enforce decisions made, and how to appropriate costs.
Communication Expectations
Effective communication is a method for building and maintaining trust while working on a project.
Outlining specific expectations like meeting schedules, frequency of check-in, and communication platforms supports this.
Your virtual assistant contract can also be an avenue to encourage dialogue and openness to renegotiations.
Legal Compliance and Governing Law
Governing law refers to the jurisdiction under which the contract operates. This is the law of the land (region, state, country etc.) that you are applying to the contract. Clarifying this is important to avoid misunderstanding. Both parties should be familiar with the applicable laws.
Legal compliance also applies in areas like tax regulations, benefits, and data privacy and security standards in the industry. For instance, the obligations are different for an independent contractor versus an employee.
Customizing Your VA Contract
Tailoring the Contract to Specific Business Needs
Every business and every project has specialized needs. It’s important to define these requirements and clauses against your overall goals and objectives.
Depending on the nature of the work, some clauses might need to be longer to reflect the project scope intricacies.
Using Contract Templates vs. Hiring a Lawyer
If it is your first time drafting a contract, we highly recommend hiring a lawyer. A lawyer can expertly advise and help craft air-tight clauses with a high level of specificity. Specificity is security in contracting. Lawyers help you identify gaps and ensure these clauses are enforceable in court if need be.
Contract templates, however, do also have benefits. For one, they are customizable. It gives you a framework you can easily edit to meet your needs. They are also cost-effective for small businesses who might not be able to afford to hire a professional. Some of these might even be lawyer-approved.
Common Mistakes to Avoid When Drafting a VA Contract
Vague Descriptions of Scope of Work
Failure to define effectively the roles and responsibilities of the VA can lead to disputes. When writing about scope, be as specific as possible. Name specific tasks and what those tasks entail. Avoiding scope creep should be a main priority in order to maintain healthy and amicable partnerships in business.
Overlooking Confidentiality Clauses
As a business owner, you have sensitive information that you want to protect, whether you are aware of it or not. As unfortunate as it is, there is a chance you hire an individual with malicious intent. They can use sensitive information to scam, steal, and pitch to competitors.
Legal advice in this area can help you identify and specify what confidential information is in your context. This can include, but is not limited to, passwords, company financial data, customer data, contact details, trade secrets, etc.
Ignoring Termination and Dispute Resolution Clauses
You need both a comprehensive “fix it” and exit strategy.
Mistakes happen. Regardless of whether they were malicious in intent, you need to have a complete framework for resolving contract conflicts. You also need to specify terms for contract termination.
Not having these clauses or having vague conditions or processes can lead to several issues. For one, unclear conditions for contract termination could lead to project delays, abuse, or lengthy litigation. The same is true for resolving disputes. Without a clear set of procedures, you could end up prolonging the issue leading to opportunity costs for both parties.
Steps to Finalize and Execute a VA Contract
Reviewing the Contract with the Virtual Assistant
Once you’ve specified the scope, payment terms, availability and all your clauses, you should give your contract a “once over”. Your virtual assistant should also possess a copy in case there are things they would like to include, remove, or revise, before finalizing.
Signing and Storing the Contract
After both parties agree to everything laid out in the contract, they must sign the contract to formalize the agreement.
The business owner typically holds the contract, however both parties should have a copy for reference and accountability.
Updating and Revising Your Contract
When to Update the Contract
A virtual assistant contract may be in need of updating for several reasons, including:
- Changes in scope or project scale
- Changes in payment terms
- Changes in deadlines, schedules, or extending the project
- Updates to what is confidential information
- When adding additional information like performance gauges and deliverables
- When legal requirements mandate an update
How to Amend the Contract
Once you’ve clearly outlined the changes, both parties should review the updates or amendments made. If the VA approves of the proposed amendment, you can both sign and formalize the updated contract.
Frequently Asked Questions
How do I handle a situation where the virtual assistant doesn’t meet the contract terms?
This is where dispute resolution and contract termination clauses come in handy. You can go through mediation to understand why they have not kept their end. Otherwise, if they have met the conditions for contract termination, you can enforce that clause and end the working relationship.
Can I use the same virtual assistant contract for multiple assistants?
Sure! The great thing about doing something once is you can use what you’ve learned as a guide for next time. Just make sure you customize it to meet the specific needs of your next project.
What should I do if my virtual assistant wants to renegotiate the contract?
Most contracts include a clause stating when renegotiations can occur. Some say anytime and some only after a certain period.
Our advice is to always be open to what they have to say. If renegotiations fail, you can continue under the original contract or cancel the contract as specified in the original termination terms.
How can I enforce confidentiality after the contract ends?
Having VAs sign Non-Disclosure Agreements can legally protect you from former workers spilling secrets once they leave.
What are the legal implications if I don’t have a contract with my virtual assistant?
While employment contracts aren’t usually required, they still offer you some protection. They help prevent ambiguity in work expectations and payment conflicts, which can escalate to legal battles. Without a formal contract, it’s also challenging to determine liability for things like data security issues.
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Conclusion
A virtual assistant contract is an essential part of a business deal. It protects respective interests and serves as a guide for undertaking projects. There are many contract templates you can choose from for their easy customization and affordability. However, if you can, hire a lawyer to help you craft an air-tight agreement.
