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Virtual assistant contracts in Australia: what every VA and OBM needs before working with a client

Picture this. A new client books a discovery call. You click straight away. By Friday you have their Asana login, their inbox and the keys to their Shopify store.

There's just one thing missing.

Nobody has signed anything.

It happens all the time. Most virtual assistant contracts in Australia get written after something goes wrong, not before. By then the hours have crept, an invoice is 45 days late, and the SOP library you built has become "theirs".

A contract isn't a sign you don't trust your client. It's how you both know what you agreed to.

Short answer: every Australian VA and OBM needs a written services agreement that covers scope, IP, confidentiality, communication, payment, notice, non-solicitation and contractor status. Using your client's contract instead is higher risk, because it was written to protect them, not you.

What you'll learn
  • Why VAs and OBMs need their own contract, not a generic one or the client's
  • The 8 clauses every VA and OBM services agreement should include
  • How the contractor vs employee rules work in Australia since August 2024
  • The 3 mistakes behind most VA disputes
  • Whether you need a new contract for every client

Table of contents


Why do VAs and OBMs need their own contract?

A generic services agreement is usually written for one-off projects. VA and OBM work is different. It's ongoing. You're inside your client's systems every day. You see passwords, client lists and the numbers. You build processes they rely on. And you often bring in subcontractors to help.

Most generic templates don't cover any of that. Your client's contract won't either, because it was drafted with their risks in mind. It might give them everything you create, let them end things today, and say nothing about when you get paid.

Key Takeaway

Your contract should describe how you actually work: ongoing access, retainer hours, the systems you build and the people you bring in.

Are you a contractor or an employee?

This one matters more than most VAs realise. Since 26 August 2024, the Fair Work Act looks at the real substance, practical reality and true nature of a working relationship. What the contract calls you is only part of the picture.

Things that point towards contractor: you choose how and when you work, you use your own tools, you have several clients, you can delegate or subcontract, and you invoice for results.

Things that drift into higher risk territory: one client, set hours, their laptop, no ability to send work to anyone else, and being paid like a wage.

There's also super to think about. If a contract is wholly or principally for your labour, your client may need to pay super for you even though you're a contractor. The Fair Work Ombudsman's independent contractor guidance is a good plain-English starting point, and we cover the differences in more detail in independent contractor vs employee: get it wrong and it'll cost you.

From Riz's Desk

If your client sets your hours, hands you a work laptop and you only work for them, have an honest conversation about how the relationship is set up. That's where "contractor" arrangements drift into higher risk territory, for both of you.

What should a virtual assistant contract include?

Here are the 8 clauses I'd want in every VA and OBM services agreement.

1. Scope of services and hours

Write down what's in and what isn't. If you work on a retainer, say how many hours it covers, whether unused hours roll over, and what extra hours cost. "Help with admin" is how 10 hours a week turns into 30. More on that in scope creep: what it is and how to manage it.

2. Intellectual property in systems and SOPs

Decide up front who owns what you create. A common lower risk approach: your client owns the work made specifically for them once they've paid, and you keep ownership of your own templates, checklists and methods so you can reuse them.

3. Confidentiality

Passwords, client data, financials, launch plans. Your contract should say how you protect them and that the obligation continues after the work ends. Here's more on protecting confidential information when working with contractors.

4. Communication

Which channels you use, your working hours and your response times. It sounds small. It's the clause that stops 10pm voice messages becoming normal.

5. Payment terms and late payment

When you invoice, when payment is due, whether retainers are paid in advance, any late fee, and when you can pause work. If an invoice is already overdue, read what to do if a client withholds payment.

6. Cancellation and notice

How much notice either of you needs to give, what's payable during the notice period, and what the handover looks like. No more "we're going in-house, effective today".

7. Non-solicitation

This covers your clients and your subcontractors. It stops your client hiring your subcontractor directly, and it helps protect your client list. Keep it reasonable in scope and length. Restraints that go too far are harder to enforce.

8. Independent contractor declaration

A clear statement that you're running your own business: you handle your own tax and insurance, and you're not an employee. Remember, this clause only helps if it matches how you actually work.

Key Takeaway

Eight clauses, written once, used for every client. That's what turns a friendly "let's go" into a legally legit working relationship.

What are the most common VA contract mistakes?

Using the client's template

It was written for them. If you do sign it, read the IP, payment, termination and liability clauses twice, and ask for changes where you need them.

No IP clause

Without one, ownership of the systems you build gets fuzzy fast, usually right when the relationship ends.

No non-solicitation clause

Your subcontractor meets your client. Your client loves them. You can see where this goes.

Frequently asked questions about VA contracts in Australia

Do I need a new contract for every client?

You need a signed agreement with every client, but you don't need to start from scratch. Use the same template and update the details each time: scope, hours, fees and start date.

Can I use the same contract for my subcontractors?

No. With a subcontractor you're the client, so the risks flip. Use a separate subcontractor agreement that covers confidentiality, IP and non-solicitation from your side.

Do I need a contract if I only work a few hours a month?

Yes. Small retainers still go wrong, and small disputes are the most frustrating kind because they're rarely worth paying a lawyer to fight.

What if my client insists on using their contract?

You can sign it. Read it carefully first, ask for changes to anything that doesn't fit how you work, and check what it says about IP, payment, termination and liability.

Do I need an ABN to work as a VA?

If you're running a business as a contractor, you'll generally need one, and clients can withhold tax from payments if you don't quote an ABN. See do I need an ABN to run my small business?

What should you do today?

Open your client list. Check every current client has a signed agreement that covers the 8 clauses above. If one doesn't, send it before your next invoice goes out.

Get every client relationship legally legit

Our VA and OBM templates are lawyer-drafted for Australian law, written in plain English, with guide notes on every clause. Start with the Essential Legal Kit for VAs and OBMs, or just the Services Agreement for VAs and OBMs.

EXPLORE THE VA & OBM LEGAL KIT →

 

About the Author

Riz, Founder & Director of Foundd Legal

Riz is the Founder & Director of Foundd Legal, a lawyer with 20+ years' experience and a long history of building online and ecommerce businesses.

She helps creatives and online business owners protect and grow their businesses with clear, practical legal tools that actually make sense.

LEARN MORE ABOUT RIZ

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Disclaimer

We do our best to keep this content accurate and up to date, but laws change, interpretations evolve, and the internet isn't perfect. Occasionally, information may be outdated or contain errors.

This content is for general information only and isn't legal advice. If you choose to rely on it, you do so at your own discretion. For advice specific to your business, you'll need support tailored to your situation.

All rights reserved. © Foundd Legal Pty Ltd


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