Service Models
How do contracts work when hiring remote developers through an agency?
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When hiring through a staffing agency, you contract with the agency—not individual developers. Here's how it typically works:
Contract structure:
```
Your Company ←→ Agency (MSA + SOW)
↓
Developer (Agency's contractor)
```
Key agreements:
1.Master Services Agreement (MSA)
-Overall terms and conditions
-IP ownership (work product is yours)
-Confidentiality and non-compete
-Termination terms (typically 30-day notice)
-Liability and indemnification
2.Statement of Work (SOW)
-Per developer or per engagement
-Role, seniority, tech stack
-Monthly rate
-Start date and expected duration
What this structure provides:
•Reduced legal risk: Extra layer between you and developers
•No misclassification concerns: Agency handles employment status
•Simplified administration: One vendor relationship vs multiple contractors
•Clear IP ownership: Defined in MSA
Typical terms:
| Term | Standard |
|---|---|
| Termination notice | 30 days |
| IP ownership | Client owns all work |
| Payment terms | Monthly, net 15-30 |
| Confidentiality | Mutual NDA |
| Non-compete | During engagement |
Contract-to-hire clause:
Most agreements include conversion terms—typically a buyout fee of 1-3 months after 18-24 months if you want to hire the developer directly.
BEON.tech uses this standard MSA + SOW structure with clear IP ownership and 30-day termination flexibility.
remote developer contract structurestaffing agency contractsMSA SOW developer hiringagency contract terms
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