Understanding Work-for-hire, Consulting and Employment Agreements

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Find out the differences between Work-for-hire, consulting, and employment agreements here. Rocket Lawyer has the legal documents and guidelines to help you.

What's the difference between a Work for Hire Agreement, a Consultant Agreement, and an Employment Agreement? If you aren't sure, don't worry. Most people don't fully understand the subtle differences between each and even more frequently, use the terms interchangeably. However, there are important legal and tax implications that make it worthwhile to fully understand these common terms.

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Work-for-Hire

A Work for Hire Agreement stipulates a situation where an employer hires, commissions or pays someone else such as a Consultant, author or Independent Contractors to create a product or "work" in exchange for the compensation agreed upon. A Employment Agreements vary widely depending upon the position, industry and other negotiations but most include the following:

Terms of Employment
Compensation and Benefit Package
Expenses
Non-Compete Agreement
Non-Solicitation Agreement
Intellectual Property Rights

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.