As a psychology business, you likely engage various contractors to assist in providing psychology services to customers. Accordingly, you must properly draft contractor agreements to manage these arrangements. The contract can clearly outline factors such as the contractor’s responsibilities, how they will receive payment, your liability, and a dispute resolution process. In addition, there are some specific clauses to consider given the nature of the business. This article will discuss some key provisions unique to the contractual agreement as a psychology business owner.
Qualifications of the Subcontractors
It is essential to set out the contractor’s responsibilities in providing the services in your contractor agreement. For example, this could include:
- accurately logging notes for each consultation that they provide;
- performing the services within their area of expertise;
- holding the necessary qualifications, such as any requisite professional registrations, certifications, permits, accreditations, approvals and licenses;
- fulfilling their duty of care to each patient; and
- notifying of any investigations by the Australian Health Practitioner Regulation Agency (AHPRA) against them.
Equipment to Conduct Telehealth Consultations
If your psychology business offers telehealth consultations as part of your services, ensure that the contractor is aware of any requirements around the type of videoconferencing software they should use. For example, it is prudent for the contractor to use videoconferencing technology per the practice standards and guides by the relevant professional body.
Continue reading this article below the formOwnership of Medical Records
Your contractor agreement should clearly outline any reporting obligations and the party that owns the medical records. You, as the business owner, will likely provide the contractor with the patient management system and make it available to them to use. The contractor should agree to maintain complete and accurate medical records in line with appropriate professional standards and that ownership of the medical records will remain your property.
Insurance
Given the nature of the contractor’s services, they must effect and maintain a medical indemnity insurance policy with a reputable insurance provider. The value of the insurance policy they should maintain is a commercial decision for you. Ultimately, the contractor must hold adequate insurance during the engagement period that they provide services on behalf of the business.
Prohibited Conduct
A prohibited conduct clause in your contractor agreement explicitly defines the type of conduct that the contractor should not engage in. Including this clause is an important risk management tool to protect your business from unpleasant situations.

If you are a company director, complying with directors’ duties are core to adhering to corporate governance laws.
This guide will help you understand the directors’ duties that apply to you within the Australian corporate law framework.
Key Takeaways
When engaging a contractor to provide services, ensure that you have a comprehensive contractor agreement. Importantly, because of the nature of the services you provide as a psychology business owner, giving the clauses raised above some thought before preparing the document will be helpful. Ultimately, tailoring the contractor agreement to suit your business and the arrangement negotiated with each contractor is crucial.
If you need assistance preparing your contract, contact our experienced contract lawyers, who can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A contractor agreement is a legally binding contract. It is between your business and the contractor that you intend to engage to provide services to you. It sets out both parties’ rights, obligations and expectations. Additionally, it outlines how to handle any issues that arise.
Yes, you must tailor your agreement to suit your business and its needs. You can adjust the details in each clause to achieve this.
We appreciate your feedback – your submission has been successfully received.