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If you run an escort service business, you will need to consider the obligations that you owe your employees and clients. To protect your business, there are a number of different legal documents that you will need. This article will take you through these documents and highlight how they are important for your business.

1. Privacy Policy and Manual

A privacy policy is a contract between your business and each person that you collect personal information from. These people may be your clients or your escorts. To comply with Australian law, your privacy policy will need to set out:

  • what personal information your business collects;
  • how your business will use this information; and
  • under what circumstances the information will be disclosed to third parties.

This information must be accessible on your website and wherever you collect personal information.

While your privacy policy is between you and the public, your privacy manual is an internal document between your business and your staff. It should set out clear procedures for your staff to follow to ensure that your business lawfully handles personal information.

2. Website Terms of Use

If you have a website, you should have a website terms of use. The website terms of use will address important matters, such as intellectual property rights and limitation of liability for your website. It should also clearly set out the permissible and prohibited uses of your website.

For an escort service, your website terms of use should also expressly state that visitors should be 18 years of age or older and, if they are not, they should leave the website immediately. 

3. Contractor’s Agreement

A contractor’s agreement is the agreement between your business and your escorts. Your escorts agree to provide the services to your clients and, in return, you agree to pay a fee. As there are health risks involved in providing escort services, you should have this drafted by a contract lawyer. A good contract lawyer will be able to ensure that all the necessary obligations are covered, such as:

  • requiring the escort (and clients) to use protection at all times;
  • not to be under the influence of illicit substances; and
  • undergoing regular sexual health checks.

4. Employment Agreement and Staff Handbook

Whether it is an escort or a receptionist, you will need to have an employment agreement between you and your employee. The employment agreement will set out the:

  • rights and obligations of each party;
  • remuneration for the employee, including superannuation payments and leave entitlements; and
  • way that you or your employee can terminate the employment relationship.

If you have a large number of staff, we also recommend having a staff handbook. This is designed to cover key Australian human resources issues, including

  • workplace health and safety;
  • alcohol and drug use;
  • complaints procedures; and
  • bullying and harassment.

In the escort service industry, the staff handbook will need to cover issues relating to hygiene and confidentiality of clients. Whilst the staff handbook is not a legally binding document, having your policies and procedures clearly set out will help minimise the chances of having a dispute between your business and your employees.

5. Client Terms and Conditions

The terms and conditions between your business and your clients create a legally binding agreement, provided that your clients had the opportunity to read the terms and conditions before using your services. If your services can be requested online, we recommend that you have a box with the terms and conditions to be scrolled through with a click-to-accept box, so that all your clients have to click a box that says, “I have read and I accept these Terms and Conditions”.

A properly drafted set of terms and conditions for an escort services business will cover a variety of things, including:

  • a clear scope of services;
  • how and when payment will be made;
  • what the clients’ obligations are;
  • what you are not liable for e.g. if the client suffers any health problems, or financial or reputational damage as a result of using the services; and
  • rights for you to terminate and refuse services to a client under certain conditions.

Key Takeaways

Operating an escort service is legal in New South Wales, but only if you operate your business in accordance with the laws and regulations of the state. Regulation of adult services and sex work is state-based, and if you are unsure of the applicable laws for your state, you should speak to a contract lawyer and seek advice. Contact LegalVision’s contract lawyers on 1300 544 755 or fill out the form on this page.

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