Medical Centre License Agreements:

A Licence Agreement is a contract where the owner of the property, or a party who has the legal right to the property, authorises another party to exercise exclusive occupation over a specific part of the property in exchange for a fee, and often subject to various constraints.

A Licence Agreement is common among medical practices where the medical professionals are not employed, but rather are engaged as contractors operating their own entity from the premises. This arrangement has multiple advantages for the medical practice, including but not limited to:

1. It allows for the medical centre to increase the number of medical professionals available to consult with patients. A Licence Agreement may also be implemented for medical service providers, such as physiotherapy, remedial massage, chiropractors or pathology rooms.
2. The medical professionals may not be classified as employees eliminating the statutory requirement for entitlements such as leave and superannuation to be paid.
3. It serves a commercial function in increasing the income for the medical centre by way of the licence fee.

The terms of a Licence Agreement will be significantly governed by any valid Lease Agreement in place between the medical centre and the owner of the property, and the terms and conditions will be consistent. For example, the period of the Licence Agreement cannot exceed the term of the Lease, the permissible use of the property must be consistent between the two documents and the rights and obligations of the Licensee and Licensor often mirror those of the Lessee and Lessor.

If you are considering whether a Licence Agreement is appropriate for your medical centre, or if you are in a dispute about the operation and terms of an existing Licence Agreement, we recommend you speak with our team at Navado. We have extensive experience in Property, Contract and Commercial Law. We can advise you of your legal rights and work with you to achieve an efficient and positive resolution to the dispute.

If you wish to speak to one of our Medical Centres & Disputes Lawyers, please contact our firm by telephone on (02) 9233 4048 or send an email to info@navado.com.au.

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.