SUPPLIER / PROVISIONAL TAXPAYER LOCUM AGREEMENT
Agency
| Immploy Recruitment Agency CC, Reg. No. 2009/088597/23
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Supplier / Locum
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Professional category
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Effective date
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Primary model
| Genuine independent contractor / supplier / provisional taxpayer model
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Tax position
| No PAYE withholding by Immploy unless legally required or reclassified; supplier responsible for tax and provisional tax
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SUPPLIER / PROVISIONAL TAXPAYER LOCUM AGREEMENT
Entered into between:
Immploy Recruitment Agency CC, registration number 2009/088597/23, referred to in this Agreement as “Immploy”, “the Agency” or “the Company”;
and
[Full name of supplier], identity/passport number [insert], tax number [insert], professional council registration number [insert], referred to in this Agreement as “the Supplier”, “the Contractor”, “the Locum” or “the Candidate”.
1. Purpose and model of this Agreement
1.1 This Agreement records the basis on which the Supplier may accept temporary locum assignments arranged by Immploy for Clients, including private healthcare clients and, where applicable, government health institutions.
1.2 This Agreement is intended for the genuine independent contractor / supplier / provisional taxpayer model. The Supplier is responsible for the Supplier’s own income tax, provisional tax, VAT status, invoices, records, professional obligations and business affairs.
1.3 Immploy does not withhold PAYE under this model unless legally required, directed by SARS, required by a written tax ruling/opinion, or the relationship is reclassified by finance/tax or legal advisors.
1.4 This Agreement must be used only where the facts and operating practice support true independent contractor/supplier status. If the facts indicate employment, TES placement or independent contractor with PAYE withholding treatment, the appropriate alternative agreement must be used.
1.5 The parties acknowledge that the title of this Agreement is not decisive. The relationship must be operated in practice in a way that is consistent with true independent contractor status.
2. Definitions
Assignment: a temporary placement, booking, shift, standby period, on-call arrangement or other work opportunity offered to the Supplier through Immploy and accepted by the Supplier.
Assignment Confirmation: the written, electronic or system-generated confirmation setting out the Client, facility, date, time, rate, payment model, role, professional category, cancellation requirements and any special conditions for a specific Assignment.
Client: the hospital, clinic, practice, government department, healthcare institution or other entity requiring locum or healthcare services.
Fees: the amount payable to the Supplier for approved services performed during an Assignment, subject to approved timesheets, invoices, payment rules, client approval and the applicable Assignment Confirmation.
Immploy Administration Fee: the agreed administration fee, agency fee, commission, margin or other amount retained by Immploy for arranging, administering or facilitating an Assignment.
Professional Council: HPCSA, SANC, SAPC or any other professional council or statutory body relevant to the Supplier’s scope of practice.
Services: the professional locum services rendered by the Supplier to the Client during an Assignment.
Supplier: the independent contractor, locum or service provider who signs this Agreement and accepts Assignments from time to time.
Tax Invoice: a VAT-compliant tax invoice where the Supplier is VAT registered, or an invoice/payment claim where the Supplier is not VAT registered.
Timesheet: the approved record of hours worked or services performed, signed or authorised by the Client and the Supplier, and submitted to Immploy in accordance with this Agreement and applicable SOPs.
3. Independent supplier status and no employment relationship
3.1 The Supplier is an independent contractor and independent service provider. The Supplier is not an employee of Immploy or of the Client.
3.2 Nothing in this Agreement creates, or is intended to create, a contract of employment, permanent appointment, fixed-term employment contract, TES employment relationship, partnership, joint venture or guarantee of work.
3.3 The Supplier is not entitled to employee benefits, leave, sick leave, family responsibility leave, public holiday pay, overtime, notice pay, severance pay, UIF benefits, pension/provident fund benefits, medical aid benefits, bonus payments or any other employee benefit, unless expressly required by law or expressly stated in an Assignment Confirmation.
3.4 The Supplier is free to provide services to other agencies, clients, practices or institutions, provided that doing so does not create a conflict of interest, breach confidentiality, breach professional obligations or interfere with an accepted Assignment.
3.5 The Supplier controls the Supplier’s availability and is not obliged to accept any Assignment offered through Immploy.
3.6 If the operational reality changes so that the relationship appears to fall within another model, Immploy may suspend further Assignments until the correct agreement and tax/payment treatment have been confirmed.
4. Agency mandate and principal-agent structure
4.1 The Supplier appoints Immploy to act as an agent, arranger, facilitator and payment administrator for Assignments offered by Clients and accepted by the Supplier.
4.2 The intended structure is that the Supplier supplies the professional Services directly to the Client, while Immploy arranges or facilitates the Assignment and administers related documents, timesheets, invoices and payments.
4.3 To the extent permitted by the relevant Client agreement, tender requirements and applicable law, Immploy may receive payment from the Client on behalf of the Supplier and pay the Supplier the amount due after deducting the Immploy Administration Fee and any other lawful or agreed amounts.
4.4 Immploy’s role as arranger or agent does not make Immploy the clinical service provider, employer or professional supervisor of the Supplier unless the applicable Client contract or law requires otherwise.
4.5 Where a Client contract, tender condition or finance process requires a different invoicing or payment mechanism, the parties will follow the applicable Assignment Confirmation, tax schedule or approved finance process, provided that the substance of the relationship is not misrepresented.
4.6 If a Client or tender prohibits a specific agency, subcontracting or supplier structure, Immploy may require the Supplier to sign a different agreement or may decline to offer the Assignment under this model.
5. No guaranteed work and acceptance of Assignments
5.1 Immploy may communicate available Assignment opportunities to the Supplier, but Immploy is not obliged to offer any minimum number of Assignments, hours, shifts or income.
5.2 The Supplier is not obliged to accept any Assignment offered by Immploy or a Client.
5.3 Once the Supplier accepts an Assignment, the Supplier must fulfil that Assignment unless it is cancelled in accordance with this Agreement, the Assignment Confirmation, Client instructions or applicable law.
5.4 Each Assignment is separate. No contract exists between Assignments, except for continuing obligations such as confidentiality, patient confidentiality, data protection, tax obligations, indemnities, non-solicitation, payment reconciliation and any unpaid payment obligations.
5.5 An accepted Assignment is personal to the Supplier and may not be transferred, assigned or substituted without Immploy’s prior written consent and the Client’s approval. This is because healthcare services depend on qualifications, professional registration, competence, clearance and Client acceptance.
6. Assignment Confirmation
6.1 Each Assignment Confirmation should, as far as reasonably practicable, state:
Client and facility or workplace;
professional category and role;
date, start time, end time and expected duration;
hourly, sessional, standby or on-call rate;
whether breaks, travel, accommodation, meals or special allowances are payable;
payment model applicable to that Assignment;
invoice requirements and payment cycle;
reporting contact and Client-specific rules;
required qualifications, professional registration, permits, orientation or access requirements;
cancellation procedure and notice requirements;
any health, safety or infection-control requirements known to Immploy.
6.2 If there is a conflict between this Agreement and an Assignment Confirmation, this Agreement prevails unless the Assignment Confirmation expressly states that a specific variation applies to that Assignment and the variation is lawful.
7. Professional registration, competence, indemnity and compliance
7.1 The Supplier warrants that the Supplier holds, and will maintain, all qualifications, professional registrations, practice rights, permits, indemnity insurance and competencies required to perform each Assignment.
7.2 The Supplier must provide Immploy with current copies of all required documents, including identity/passport documents, tax number, VAT registration details where applicable, banking details, professional registration, proof of indemnity cover, relevant certificates and any Client-required compliance documents.
7.3 For Department of Health or similar Assignments, the Supplier must maintain the level of indemnity insurance required by the Client or tender, and where no specific level is stated, such level as Immploy reasonably requires for the relevant professional category.
7.4 The Supplier must immediately inform Immploy if any registration, indemnity cover, permit, fitness-to-practise status, professional standing, tax status or VAT status is suspended, restricted, challenged, investigated or allowed to lapse.
7.5 The Supplier must perform Services within the Supplier’s professional scope of practice and must not accept an Assignment for which the Supplier is not qualified, registered, competent, authorised or fit.
8. Performance of Services and Client rules
8.1 During an Assignment, the Supplier must use reasonable skill, care and diligence, act professionally and comply with all lawful, reasonable and clinically necessary Client rules, facility protocols, health and safety requirements, infection-control requirements and patient-care standards.
8.2 Compliance with Client clinical and facility rules does not convert the Supplier into an employee. Such compliance is required because healthcare services must be provided safely, professionally and in accordance with legal, ethical and facility requirements.
8.3 The Supplier must not accept instructions that are unlawful, unethical, outside the Supplier’s scope of practice or inconsistent with professional obligations. Any such concern must be raised with the Client and Immploy immediately.
8.4 The Supplier must not hold themselves out as an employee, partner or authorised representative of Immploy or the Client except to the extent necessary to perform an accepted Assignment.
9. Timesheets, records and proof of work
9.1 Payment is dependent on an approved record of work. The Supplier must ensure that each Timesheet accurately records the date, facility, start time, end time, breaks, total hours, unit/ward/department where applicable, role and Client authorisation.
9.2 The Timesheet must be signed or electronically approved by the Client’s authorised representative and by the Supplier.
9.3 The Supplier must submit Timesheets by the deadline communicated by Immploy or stated in the applicable SOP. Where no deadline is stated, Timesheets must be submitted as soon as reasonably possible after the Assignment and no later than the weekly or monthly payment cut-off communicated by Immploy.
9.4 Late, incomplete, inaccurate or unauthorised Timesheets may delay payment. Immploy may query or reject a Timesheet that appears incomplete, inconsistent, altered, fraudulent or not properly authorised.
9.5 The Supplier must keep copies of Timesheets, invoices, remittance advices, tax invoices and tax records for the period required by law.
10. Invoices, VAT and supplier payment process
10.1 The Supplier must submit a valid invoice or tax invoice, as applicable, that matches the authorised Timesheet and the applicable Assignment Confirmation.
10.2 The invoice must include the information required by Immploy’s SOP and finance requirements, including the Supplier’s name, address, banking details, tax number, VAT number where applicable, description of the facility and shift, number of hours, hourly rate, total amount, Immploy details and any other information required by law or Immploy’s finance process.
10.3 If the Supplier is not VAT registered, the Supplier must not charge VAT.
10.4 If the Supplier is VAT registered, the Supplier must issue a valid tax invoice and is responsible for output VAT, VAT returns, records and SARS compliance in relation to the Supplier’s taxable supplies.
10.5 Immploy may withhold, delay or query payment where the Supplier fails to submit an authorised Timesheet, valid invoice, valid tax invoice where applicable, correct banking details, current compliance documentation or any other required payment document.
10.6 Any future change to the invoice model, including a principal-agent invoice model or client-facing VAT model, must be implemented only after approval by finance/tax and after alignment with the Client-facing agreement, internal accounting records and applicable SARS requirements.
11. Fees, administration fee and payment
11.1 The Supplier will be paid the agreed Fees for approved Services actually performed during an accepted Assignment, subject to the Assignment Confirmation, approved Timesheets, valid invoice/tax invoice, Client approval, payment cycle and applicable finance process.
11.2 To the extent permitted by the applicable Client agreement and approved finance/tax model, Immploy may receive payment from the Client on behalf of the Supplier and pay the Supplier the amount due after deducting the Immploy Administration Fee and any other lawful or agreed amounts.
11.3 Where the Client pays Immploy as principal under a Client contract or tender, Immploy may pay the Supplier against the Supplier’s invoice according to the approved supplier payment process, provided that the model remains commercially and legally defensible.
11.4 The Supplier may not demand payment directly from a Client unless expressly agreed in writing by Immploy and the Client.
11.5 Payment dates, payment runs, payment cycles and cut-off times are operational processes and may be changed by Immploy on reasonable notice.
11.6 Immploy may deduct or set off from amounts payable to the Supplier:
the agreed Immploy Administration Fee, where applicable;
amounts authorised by the Supplier in writing;
amounts required by court order, SARS or lawful authority;
amounts attributable to overpayment, duplicate payment, fraud, Timesheet error, incorrect invoice or confirmed unauthorised payment, subject to proper supporting records;
amounts arising from proven loss caused by the Supplier’s wilful misconduct, fraud or gross negligence, subject to applicable law.
12. Tax responsibility and provisional tax
12.1 The Supplier is responsible for the Supplier’s own tax affairs, including income tax, provisional tax, VAT where applicable, ITR12, IRP6, SARS eFiling, supporting records, tax estimates, penalties, interest and any SARS correspondence or assessments.
12.2 Immploy will not withhold PAYE under this model unless legally required, directed by SARS, required by a written tax ruling/opinion, or the relationship is reclassified by finance/tax or legal advisors.
12.3 The Supplier must register as a taxpayer and, where legally required, as a provisional taxpayer and/or VAT vendor.
12.4 The Supplier acknowledges that provisional tax may require payments to SARS during the year of assessment and that underestimation or late payment may result in penalties and interest.
12.5 Immploy may provide general tax process information or refer the Supplier to a tax expert, but Immploy does not provide personal tax advice unless separately agreed in writing. The Supplier remains responsible for obtaining the Supplier’s own tax advice.
12.6 The Supplier must notify Immploy immediately if SARS, a tax practitioner, finance/tax or any legal advisor advises that PAYE withholding, 3616 treatment, employee treatment or another classification may apply.
13. No UIF, SDL or employee payroll treatment
13.1 Under this supplier/provisional taxpayer model, the parties intend that PAYE, UIF and SDL will not apply because the Supplier is not an employee and is responsible for the Supplier’s own tax affairs.
13.2 If finance/tax or legal advisors determine that PAYE, UIF, SDL or any statutory payroll obligation applies to the Supplier or to a particular Assignment, Immploy may change the model, require a different agreement, withhold the required amount or suspend further Assignments until the correct treatment is confirmed.
14. No leave, sick leave, overtime or employment benefits
14.1 Because this Agreement is a contract for services and not a contract of employment, the Supplier is not entitled to annual leave, sick leave, family responsibility leave, maternity/parental leave, public holiday pay, overtime, notice pay, severance pay, UIF, SDL-related benefits or any employee benefit under this Agreement.
14.2 If the Supplier is ill or incapacitated, the Supplier must notify Immploy and the Client in accordance with clause 15. The Supplier will not be paid for Services not performed unless the Assignment Confirmation or applicable law provides otherwise.
14.3 Where a Client or tender provides specific standby, on-call, travel, accommodation, meal or other payments, those payments will be governed by the applicable Assignment Confirmation and Client approval.
15. Cancellation, lateness, no-show and inability to attend
15.1 If the Supplier is unable or unwilling to attend an accepted Assignment, the Supplier must inform Immploy and, where required, the Client as soon as possible and in any event within the notice period stated in the Assignment Confirmation.
15.2 Unless a different notice period is stated in the Assignment Confirmation, the Supplier should provide at least 48 hours’ notice for a shift or Assignment of less than one week, and at least one week’s notice for an Assignment longer than one week.
15.3 The Supplier is not authorised to arrange a replacement directly unless Immploy gives prior written approval and the Client accepts the replacement.
15.4 Repeated late cancellation, lateness, no-shows, refusal to follow proper notification procedures, or conduct that causes Client service failure may result in removal from current or future Assignment opportunities.
15.5 Immploy may recover a proven loss caused by the Supplier’s wilful misconduct, fraud, gross negligence or unjustified failure to attend an accepted Assignment, subject to applicable law and proper supporting records. This clause is not intended to impose an unlawful penalty.
16. Complaints, clinical incidents and removal from Assignments
16.1 The Supplier must immediately report any clinical incident, patient-safety concern, complaint, professional concern, injury on duty, exposure incident, access issue, dispute or event that may affect the Assignment to the Client and Immploy.
16.2 If the Client requests removal of the Supplier from an Assignment, Immploy may remove the Supplier from that Assignment while the issue is assessed. Removal from an Assignment does not automatically constitute dismissal because this is not an employment agreement.
16.3 Immploy may require information from the Supplier and may refer concerns to the relevant professional body, Client or authority where legally or professionally required.
16.4 Immploy may decline to offer further Assignments where the Supplier’s conduct, competence, availability, documentation, professional standing or Client feedback creates unacceptable operational, clinical, reputational, legal or compliance risk.
17. Confidentiality, patient information and POPIA
17.1 The Supplier must keep confidential all patient information, Client information, Immploy information, candidate information, rates, business processes, systems, passwords, contact details, financial information and any other confidential or personal information obtained through Immploy or a Client.
17.2 The Supplier may process personal information only for the purpose of performing an accepted Assignment and only in accordance with Immploy and Client instructions, POPIA, healthcare confidentiality rules and applicable professional obligations.
17.3 The Supplier must not remove, copy, retain, disclose, upload, publish or use any patient, Client, candidate or Immploy information for any unauthorised purpose.
17.4 The Supplier must immediately notify Immploy of any suspected or actual breach of confidentiality, data loss, unauthorised disclosure, cyber incident or improper access to personal information.
17.5 The Supplier’s confidentiality, patient confidentiality and POPIA obligations survive termination of this Agreement.
18. Non-solicitation and direct engagement
18.1 If a Client introduced by Immploy wishes to engage the Supplier directly, the Supplier must notify Immploy immediately before accepting the engagement.
18.2 The Supplier acknowledges that Immploy may be entitled to charge the Client an introduction, placement or conversion fee, depending on the Client agreement and applicable Assignment terms.
18.3 During this Agreement and for [insert period] after the last Assignment or introduction, the Supplier must not knowingly bypass Immploy to secure direct work from a Client introduced by Immploy where doing so would deprive Immploy of an agreed fee, unless Immploy gives prior written consent.
18.4 This clause must be applied reasonably and must not unlawfully prevent the Supplier from working or earning a living.
19. Reclassification and model review
19.1 Immploy may review the Supplier’s classification at any time where the facts, Client requirements, tax requirements, SARS guidance, labour-law risk, tender requirements or actual operating practice suggest that a different model may apply.
19.2 Reclassification may include moving the Supplier to:
the 3616 independent contractor with PAYE withholding model;
the 3601 employee/TES model;
a Client-specific assignment model;
no further Assignments until classification is resolved.
19.3 The Supplier must provide information reasonably required for classification review, including details of other work, tax/VAT status, invoices, professional registrations and the manner in which Assignments are performed.
20. Suspension of active supplier status
20.1 Immploy may suspend the Supplier’s active onboarding status or decline to offer further Assignments if:
documents, registration, tax status, VAT status, indemnity or right-to-work information is missing, expired or inaccurate;
Client access, orientation or credentialing is incomplete;
the Supplier is under investigation by a professional body, regulator, Client or law-enforcement authority;
there is a material complaint, clinical incident, professional concern, confidentiality breach or patient-safety concern;
the relationship appears to fall into a different tax or labour model;
continuing to offer Assignments would create material legal, clinical, reputational, operational or compliance risk.
20.2 Suspension of active onboarding status is an operational risk-control measure and does not constitute dismissal or disciplinary action under an employment contract.
21. Term and termination
21.1 This Agreement commences on the Effective Date and continues until terminated by either party on [insert notice period] written notice, unless terminated earlier in accordance with this Agreement.
21.2 Either party may terminate this Agreement at any time by written notice. Termination does not affect any accepted Assignment already completed, any outstanding payment properly due, or any surviving obligations.
21.3 Immploy may terminate this Agreement or remove the Supplier from active status immediately if the Supplier:
loses professional registration or indemnity cover;
commits fraud, dishonesty, serious professional misconduct or serious breach of confidentiality;
materially breaches this Agreement;
misrepresents qualifications, registration, tax status, VAT status or availability;
creates material clinical, legal, compliance, reputational or operational risk;
is prohibited by a Client, professional body, court, regulator or law from performing the relevant Services.
21.4 Termination does not affect confidentiality, POPIA obligations, patient confidentiality, tax obligations, VAT obligations, indemnities, non-solicitation obligations, payment reconciliation, audit rights or any clause intended to survive termination.
22. Dispute resolution
22.1 The parties will first attempt to resolve disputes through good-faith discussion between the Supplier and Immploy’s designated representative.
22.2 If the dispute concerns payment, the Supplier must provide the relevant Assignment Confirmation, Timesheet, invoice/tax invoice, payment advice, and any Client approval available.
22.3 Nothing in this clause prevents either party from approaching a court, tribunal, regulator, SARS, professional council or other forum with jurisdiction where legally entitled to do so.
23. General provisions
23.1 This Agreement, together with any schedules, Assignment Confirmations, approved tax/payment schedule and applicable SOPs, contains the terms applicable to the Supplier’s Assignments under this model.
23.2 No variation is valid unless recorded in writing and approved by Immploy’s authorised representative.
23.3 If any provision is unlawful or unenforceable, the remaining provisions remain effective to the extent legally permitted.
23.4 The Supplier confirms that the Supplier has had the opportunity to read this Agreement, ask questions and obtain independent tax/legal advice before signing.
SCHEDULE A: ASSIGNMENT CONFIRMATION TEMPLATE
This schedule should be completed for each accepted Assignment or captured in the relevant booking system.
Supplier name
| [insert]
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Client / facility
| [insert]
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Department / ward / unit
| [insert]
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Professional category
| [insert]
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Assignment date(s)
| [insert]
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Start and end time
| [insert]
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Rate / fee basis
| [insert hourly / sessional / standby / on-call]
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Payment model
| Supplier / provisional taxpayer independent contractor
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PAYE withholding
| No, unless reclassified or legally required
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UIF / SDL
| Not applicable unless required by law or reclassification
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VAT treatment
| [Not VAT registered / VAT registered / VAT status pending]
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Invoice requirement
| Supplier invoice or valid tax invoice, matching authorised timesheet
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Breaks / travel / accommodation / meals
| [insert if applicable]
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Cancellation notice
| [insert]
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Special compliance requirements
| [insert]
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SCHEDULE B: TAX, VAT AND PAYMENT SCHEDULE - SUPPLIER MODEL
This schedule must be confirmed by finance/tax before implementation.
Model
| Supplier / genuine independent contractor / provisional taxpayer
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PAYE
| No PAYE withholding by Immploy unless legally required or reclassified
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UIF
| Not deducted where the Supplier is genuinely not an employee, unless required by law
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SDL
| Not accounted for where the Supplier is genuinely not an employee/remuneration is not subject to SDL, unless required by law
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Tax return responsibility
| Supplier responsible for ITR12, assessments, SARS correspondence and supporting records
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Provisional tax
| Supplier responsible for IRP6 estimates and provisional tax payments where applicable
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VAT status
| Supplier must declare whether registered, not registered or liable to register as a VAT vendor
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Invoices
| Supplier must issue invoice/tax invoice in line with finance SOP and VAT requirements
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Payment proof
| Supplier invoice, authorised timesheet and remittance/payment advice
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Expenses
| Supplier responsible for own business expenses and claims, if legally deductible
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Review trigger
| If facts indicate 3616 or 3601 treatment, this model must be reviewed
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Future agency model
| Client-facing invoice and ledger treatment must align with any approved principal-agent structure
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SCHEDULE C: SUPPLIER ONBOARDING DECLARATION
The Supplier declares and undertakes that:
I am registered with the relevant Professional Council and will maintain that registration in good standing.
I have provided accurate copies of my qualifications, identity/passport documents, tax number, banking details, professional registration and indemnity cover.
I understand that I am not guaranteed any Assignments and may accept or decline Assignments offered to me.
I am responsible for my own income tax, provisional tax, VAT status, tax returns, invoices and SARS compliance.
I will inform Immploy immediately if my professional registration, indemnity cover, right to work, tax status, VAT status, banking details or contact details change.
I may work for other agencies or clients, provided that I do not breach confidentiality, professional obligations or accepted Assignments.
I will not represent myself as an employee of Immploy or the Client unless the correct employee/TES agreement applies.
I will comply with patient confidentiality, POPIA and all lawful Client facility rules while performing an Assignment.
I understand that if the relationship is not operated as independent contracting in practice, Immploy may require a different agreement or tax/payment model.
Signed at __________________________ on this ______ day of __________________ 20____.
For Immploy Recruitment Agency CC
| Supplier / Locum
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Name: ______________________________
| Name: ______________________________
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Designation: ________________________
| ID/Passport: ________________________
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Signature: __________________________
| Signature: __________________________
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