Independent Contractor Agreement

This is a contractual agreement between

TLC Trauma and Centre
(hereafter referred to as TLC or Trauma and Loss Centre),
and
the Mental Health Practitioner and the business it represents
(hereafter referred to as the Contractor)

This document contains important information about the conditions of professional service delivery, business policies, rights & responsibilities, confidentiality and consent.

This agreement constitutes the entire agreement and supersedes any and all agreements between the parties, whether oral or written.

This agreement will be reassessed and updated by TLC and needs to be affirmed by the contractor annually or as needed.

This agreement work in conjunction with the Terms & Conditions as set out to clients and needs to be agreed to by the contractor as well.

This agreement may be terminated at any point for whatever reason. Financial obligations, confidentiality, and proprietor rights, for example, will survive the termination of this agreement.

Where contractors function as a partnership, all parties are required to sign this Agreement individually and act as witnesses for each other.

Proprietor Rights

All logos, names and other trademarks of TLC remain the property of TLC.

All material or concepts generated, or events organised by TLC or other associated contractors remain the property of the person responsible for it. This includes for example workbooks, handouts or aiding material, and presentations, and all copyrights to and responsibility for it.

Marketing material created by TLC or at TLC events remains the property of TLC.

Contractors may apply for permission from TLC to use this marketing material for the benefit of both parties and that adequate reference is made.

At the termination of this agreement, the contractor will promptly return and deliver to TLC all written and portable forms of confidential information in its possession, custody or control, excluding client files for whom the contractor remains professionally accountable. This obligation will survive the termination of this agreement.

Any reference by the contractor to his/her clients, whether on one’s website or email correspondence or otherwise, needs to make it clear that one is an independent service provider and does not speak on behalf of TLC or any other service provider for TLC.

The Function of TLC

TLC serves as a platform for independent practitioners, with a focus on marketing, arranging events and processing payments.

Professional Registration

The contractor needs to be registered and in good standing with his/her relevant professional governing board.

The contractor will honour the professional ethical codes that prescribe the extent and limits of the service one is qualified to render, as well as the obligations and responsibilities, confidentiality, disclosure, reporting and record-keeping procedures.

Responsibility of TLC and the Contractor

TLC will honour, edify and promote contractors as professionals, who also operate their own practices outside TLC.

TLC will not speak on behalf of, make commitments or arrange anything on behalf of a contractor, outside of what has been agreed to.

The contractor will make every effort to assist the client to the best of his/her ability and to refer to someone more appropriate if needed.

Ensure that no injury or damage is caused to the client or TLC or other independent contractors to TLC.

To protect the clients’ information and whatever has been shared in confidentiality, as ethically and legally prescribed.

The contractor will not use, divulge or disclose any information gained through or as a result of TLC to any third party, or use it for personal or another’s gain. This obligation will survive the termination of the agreement.

The contractor will be privately accountable and liable for any claims made by the client and need to maintain appropriate and adequate professional insurance.

Where the contractor agreed with the client to offer service before payment, the contractor remains responsible for the administration fee to TLC, whether the client pays or not.

To practice external clinical supervision, as is professionally prescribed or suggested.

To make every effort to support and edify other TLC contractors and the services they offer.

The contractor takes responsibility for the maintenance and safety of the equipment used in his/her practice.

The contractor will not canvass, solicit, interfere, enable or entice away a client, an associated contractor, a business, a host or venue, a sponsor or a donor from TLC or another associated contractor.

The contractor will record and maintain client files with, but not limited to, personal information, case progress notes and reports in accordance with all relevant laws, ethical guidelines and professional registered boards.

This obligation will survive the termination of the agreement, as the contractor remains professionally accountable for it.

Audits

Annual audits are mandatory to rule out any form of malpractice or fraud.

TLC have the right to request an audit of the contractor’s practice at any point as well. The costs will be covered by TLC unless irregularities have been noted.

The contractor’s service agreement may be terminated or suspended until the errors have been rectified. A claim may also be put against the contractor for such violations. This obligation will survive the termination of the agreement, and the contractor may be held accountable for it with the professional governing body he/she prescribes to.

Bookings

Contractors determine their own rates, the duration of sessions, and the days and timeslots they are available, and will update their info on the platform regularly to make it easier for clients to consider.

After a client has inquired and arranged a date and time for a session, he/she will receive a booking code to book and pay online, through the website only.

Inquiries:

On registering and inquiring about a booking, the client will specify his/her requirements and the dates & times and the contractor that would be preferred.

The client will be able to contact the contractor directly through the TLC platform or be put in direct contact with the contractor as soon as possible.

For general inquiries, the contractors listed for the speciality of service requested will be informed to contact the client him/ herself to make arrangements.

All clients will be visible to all contractors on a spreadsheet with their contact details, their current, past and booked activities, and the contractor/s involved, as well as the complimentary service providers referred to.

If there isn’t a space available for a specific group, event or with a specific contractor, the client will be informed of other options or be put on a waiting list.

Preliminary bookings:

The client will receive the estimate with the confirmation email and booking/reference code.

These preliminary bookings that await payment confirmation will be held for a period of 48 hours or up to 24 hours before the date and time selected. If not, the contractor’s diary or space in an event or group will be cleared for another booking opportunity.

Bookings and Payments:

Bookings will only be confirmed once full payments have been made.

In the irregular event where a client needs to be billed for services rendered, the contractor will assume the responsibility to collect the remuneration.

Where there are impromptu services rendered, the contractor will assume the responsibility to log the booking.

Contractor Rates

Contractors determine their own rates, the duration of sessions, and the days and timeslots they are available, and will update their info on the platform regularly to make it easier for clients to consider.

End-of-life doulas who do home or hospital visits, may also charge a call-out and travelling fee on top of their standard fee.

Online, support group meetings have a set rate for contractors, regardless of the number of attendees.

Note that TLC offers discounts for clients for support groups who cannot afford one-on-one or group sessions. The contractor will not be informed about the contributions made by individual clients.

TLC will make every effort to keep these sessions sustainable and may cross-fund group sessions where necessary.

The rate of in-person group sessions, workshops, retreats or events will depend on several factors, including the requirements of the contractors and the number of attendees. The feasibility of such events will be arranged beforehand between the contractor/s, TLC and the client/s.

A rough estimate will be available for clients to book the event, as a deposit.

A final quote will be made closer to the date that will include for example extra travelling costs, material needed and special catering arrangements. Only upon full payment will the client receive confirmation of the booking.

For smaller events, the contractor/s involved will make all the arrangements themselves. Larger events, especially where a number of contractors are involved, may require the assistance of an event planner, funded by the event. Such an external coordinator may also be used if the clients of larger events pay individually.

Any extra activities and expenses during these occasions will be at the client’s own cost.

Admin Fees

TLC will only levy the set admin fee of 10.3% against the contractors’ Service Fee.

TLC will not claim from the contractor against extra material costs or call-out fees/travelling costs, noted as Expenses, or against gratuities or sales during the event.

TLC will also not profit from the venue hire, entertainment or catering costs.

Transaction Fees

TLC uses PayFast as the online payment platform.

This facility allows for all types of payments, has direct links to banks, and does not require TLC or the contractor to deal with the client’s financial details.

PayFast’s fees are 4.7% per transaction, plus R10 per withdrawal made.

PayFast may change its fee structure at short notice, to which TLC will forward the cost to the contractor.

TLC will not charge any additional transaction fees for transferring funds to the contractors’ private bank accounts.

Administration of Funds

The client will make a payment through PayFast.

The money will remain in PayFast’s account until TLC requests the transfer to TLC’s account, less the 4.7% transaction fee and the R10 transfer fee.

TLC will transfer the money to the contractors’ bank accounts, less the 10.3% admin fee on the Service Fee as stipulated on the invoice. (Note that other expenses identified on the invoice will not carry admin fees from TLC.)

Invoicing the Client

After arrangement with the client, the contractor will offer the client a quote/proforma invoice through the TLC platform.

The quote/proforma invoice will need to stipulate the breakdown of the total amount, with a particular distinction between the service fee charged and the expenses that will be made in lieu of the service provided.

On receipt of the payment, TLC will forward the money to the contractor with his/her invoice for every session separately.

Where an event planner or coordinator is involved, the money will be managed through a separate PayFast account and/or dedicated bank account. This is to accommodate a number of contractors involved or where many individual clients will be making payments for the same event.

Invoicing the Contractor

TLC will provide a summative invoice to the contractor for all services provided at the end of every month unless specifically requested by the contractor or upon the termination of this agreement.

The summative invoice will include a summary of all the 4.7% transaction fees charged by PayFast, and the 10.3% admin fee as calculated from the Service Fee the contractor invoiced the client for.

The invoice would normally show paid in full, as the transaction and admin fees are deducted before the money is transferred to the contractor.

Where it happens that a client has been charged for Expenses, but after the event, the invoices do not come to the precise amount, the difference would be added or subtracted from the Service Fee, and the Admin Fee adjusted accordingly.

* The client will not be refunded or charged extra afterwards, unless the amount is substantial or if arranged with by the client upfront.

Invoice Discrepancies

Normal discrepancies where there are minor differences between Service Fees and Expenses, as noted on client invoices, will be corrected on a monthly basis.

Irregular discrepancies may occur where the contractor provides impromptu services; where a service is not registered and invoiced through TLC; where payments are received in cash or billed afterwards; or where TLC-sourced clients are seen privately and not declared.

These discrepancies are picked up through audits and follow-up phone calls, and happen due to poor record keeping (for example not filing expense invoices to a client, or wrongly allocating Service Fees as Expenses), when not separating private from professional expenses, when being bullied by clients, or in order to avoid tax obligations and admin fees.

Tax and Bookkeeping

The contractor functions as an independent service provider for TLC, either as a registered business, partnership or as a sole proprietor.

TLC is not responsible for the contractors’ bookkeeping or tax calculations and submissions.

Appendix I offer a helpful guideline for managing one’s finances.

APPENDIX I : Bookkeeping & Taxes

Keep a record of all invoices made out and payments received from clients

* Separate on the invoice the money charged as service fees

* And the money charged as other expenses

Keep a record of all business-related expenses

* Have a file where you collect every month’s invoices received

Have a separate business expense bank account, other than your personal bank account

* Make all payments for the practice from the business account in order to have a bank statement to check your expenses against

Have a separate business Tax account

* Use it like a savings account

* Allocate 25% of all your gross income into this account and forget about it

When setting your budget, consider that for every invoice you make out, you will only be able to use 60% of its value

* 15% will go to transaction and admin fees

* 25% will go to providing for tax

* Then you will pay for all your expenses

* And whatever is left is yours every month

* The money that is left after your tax has been calculated and paid, is your bonus money

Other notes:

* Small-scale businesses do not pay VAT, only Income Tax

* Make sure whether any local municipal government taxes apply to you, and where you have employees, you need to arrange for UIF for example

* There are several affordable bookkeeping software out there to manage your finances

* Get yourself a good tax consultant that is familiar with your industry

* The money you spend on a tax consultant buys you peace of mind and you will get more back than you spend – it’s the only service that pays for itself

* Make sure you keep to the dates for submissions set out by SARS

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