How do I end a consulting agreement?
ContractorsCompliance
Ending a consulting engagement means following the termination clause: give the notice it requires, in writing, and pay the final invoice for work done to the end date. There is no final-wage statute, no unemployment notice and no COBRA, because none of that applies to an independent contractor. What deserves attention is what survives the end: the assignment of intellectual property, the confidentiality obligation, and any equity that was still vesting.
Notice and the last invoice
Most consulting agreements let either side terminate on written notice, and some allow immediate termination for breach. Send the notice the way the agreement says and keep a copy. Ask for the final invoice and settle what the agreement owes for work in progress, usually completed milestones and time to date. Do not withhold payment to force delivery. Ask for the deliverables and pay the invoice; they are separate obligations.
Deliverables and the IP
A well-drafted agreement assigns intellectual property as it is created, so the company already owns the work by the time anyone thinks about ending the engagement. Even so, ask for everything in progress, including source files, credentials and drafts, and for confirmation that nothing the company needs remains on the consultant's systems. If the agreement assigns IP only on payment, pay.
Access and authority
Remove the consultant's access to systems on the last day, and tell anyone who dealt with them, inside and outside the company, that they no longer speak for it. A consultant who negotiated with customers can bind the company by apparent authority for as long as those customers believe the relationship continues.
Equity
Vesting stops on the last day of service. A vested option stays exercisable for the post-termination period in the grant, and unvested restricted stock becomes subject to the repurchase right, which usually has to be exercised within a fixed period. Tell the consultant what vested, and record the change wherever the company tracks its equity.
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Written by the lawyers who built Arabella. This is legal information, not legal advice for your situation, and reading it does not make us your lawyers. For a real dispute or a high-stakes decision, talk to a licensed attorney. More questions.