The Most Overlooked Legal Risk in Allied Health? Client Ownership
In the fast-paced world of allied health, you’re busy focusing on client outcomes, compliance with the NDIS, and growing your clinic but there’s one silent threat that could unravel all your hard work: client ownership.
If your service agreements don’t clearly define who owns the client relationship, particularly in multi-practitioner setups, you could lose clients, revenue and goodwill overnight.
Why Client Ownership Matters (More Than You Think)
f you’re a solo allied health practitioner, there’s no question, your clients are your clients. But once your business grows and you start bringing on additional practitioners, contractors or casual therapists, things get a whole lot more complicated.
In a clinic model, especially one operating under the NDIS framework, client loyalty often lies with individual practitioners rather than the brand. Without clearly defined terms around client ownership in your practitioner agreements or service contracts, your business could be exposed to serious risk.
It’s not just a theoretical problem, it’s a very real legal and commercial issue. Here’s why:
- No ownership clause? No legal protection. Without a written clause that defines who owns the client relationship, the law often assumes that the relationship belongs to the person delivering the service, not the clinic. That means a therapist can leave and legally continue working with “your” clients.
- Revenue can walk out the door. If a valued team member moves on, and clients follow them, your clinic could suffer a major drop in income overnight.
- NDIS providers are especially at risk. The NDIS encourages client choice and control and while that’s great for participants, it also means they’re free to follow their favourite therapist unless your agreements put boundaries in place.
This issue pops up most often in multidisciplinary or mobile allied health practices (think occupational therapy, physiotherapy, psychology, and speech pathology clinics), where contractors or employees work independently under your brand.
Without clear client ownership terms, you’re leaving the door wide open for:
- Loss of goodwill you’ve spent years building
- Disruption to continuity of care
- Difficulty onboarding new practitioners (because clients are already loyal to someone else)
A Real-World Example: When Client Ownership Isn’t Clear, Everyone Loses
Emma is the founder of a thriving speech pathology clinic operating under the NDIS. As demand for services grew, she brought on Liam as a subcontractor to help manage her growing client base. He was great with clients, delivered consistent results, and quickly became a trusted part of the clinic.
But there was one big oversight.
Liam’s contractor agreement didn’t include any provisions around client ownership. There was no clause defining who “owned” the client relationship, no terms around what would happen if Liam ever left, and no non-solicitation clause. Like many clinics, Emma had assumed the clients would remain with the business.
Eighteen months later, Liam gave notice. He’d decided to open his own practice just five minutes down the road.
And he didn’t leave empty-handed.
Several clients followed him to his new clinic. He’d built strong rapport, and without anything in his service agreement restricting client poaching or requiring a handover process, there was nothing Emma could do. He didn’t need to transfer clinical notes, maintain continuity, or even notify her who had gone.
Emma was blindsided. Not only did she lose income, but her reputation took a hit as some existing clients experienced gaps in their care. The worst part? It was completely avoidable if her allied health service agreements had been properly drafted.
This isn’t uncommon. In fact, it’s one of the most frequent pain points we see when reviewing NDIS provider contracts and service agreements for allied health clients. Many clinics rely on free templates or assume that general employment rules will protect them but without the right legal clauses, those assumptions don’t hold up.
Why It’s Even Riskier for NDIS Clinics
If you’re operating under the NDIS, you already know how intense the compliance landscape can be, from audits and reporting to participant service plans. But there’s one crucial gap many providers still overlook: who actually owns the client relationship.
Most NDIS service agreements focus on what the participant can expect from the service provider, but they say very little about what happens internally, especially when a therapist leaves or transitions out of the business.
Try Googling NDIS client ownership agreement or client ownership in allied health and you’ll quickly see how little guidance is out there. That silence isn’t just inconvenient, it’s dangerous for your business.
If you:
- Work with subcontracted or casual allied health practitioners
- Depend on strong therapist-client bonds (as most NDIS providers do)
- Don’t have any post-employment or exit clauses in your contracts
…then you’re leaving the door wide open for misunderstandings, disputes, or worse, for clients to follow a practitioner out the door, with no legal grounds to prevent it.
And under the NDIS, continuity of care matters. If a therapist leaves suddenly, and there’s no proper handover or communication plan, you risk not just client loss but also potential complaints or compliance flags.
What Should Be in Your Allied Health Service Agreements?
Whether you’re running a solo NDIS practice or managing a team of therapists, having a professionally drafted service agreement is essential. A clear and comprehensive allied health service agreement does more than tick a compliance box, it protects your client relationships, reputation and business value.
Here’s what we include in our tailored agreements at Rise Legal:
✅ A clear statement of who owns the client relationship
This is the foundation of your protection. Your agreement should clearly state that the clinic or business, not the individual practitioner owns the client relationship. This clause is particularly critical for NDIS service providers, where clients may receive care from multiple therapists over time.
Without this in writing, there’s room for interpretation, and that’s when things go wrong.
✅ Contractor obligations on exit, including notice periods and handover requirements
Your service agreement should outline what happens when a practitioner leaves. That includes how much notice they must give, how client files and notes are to be handed over, and whether they can inform clients of their departure. A smooth exit process protects the continuity of care and reduces disruption to your clinic.
✅ Clauses covering client data, notes and privacy
Client data is a legal and ethical minefield, especially under the NDIS Quality and Safeguards Framework. Your agreements should confirm that all client notes, reports and records remain the property of your clinic and must be returned or securely stored on exit. Practitioners must also acknowledge their ongoing obligations around confidentiality and privacy, even after they’ve moved on.
✅ Post-engagement restrictions (like reasonable non-solicitation clauses)
A well-drafted non-solicitation clause prevents former team members from actively encouraging clients to follow them to a new practice, without being overly restrictive. These clauses are different from non-competes and must be reasonable in scope, duration and geography to be enforceable under Australian law.
This is especially relevant for businesses looking to maintain NDIS client continuity and service delivery.
✅ Clear rules around marketing, branding and social media use
Your team represents your brand. Make sure your agreement sets out how your name, logo, website, client lists or testimonials can (or can’t) be used. Also, include rules about what practitioners can post on social media during and after their time with your clinic. This protects your reputation and minimises confusion for clients who may not realise someone has moved on.
Don’t Make It Personal. Make It Contractual.
When it comes to client relationships, relying on goodwill or a handshake isn’t enough, especially in allied health, where client trust and continuity are everything. This isn’t about being possessive or paranoid. It’s about putting your business on solid legal ground.
By formalising client ownership through properly drafted service agreements or contractor contracts, you create a clear legal framework that protects your clinic from unnecessary risk.
Here’s what having the right clauses in place can do:
- Set expectations from day one – Practitioners and contractors know the boundaries, your policies, and their obligations if they ever leave.
- Avoid misunderstandings – You eliminate grey areas that can lead to disputes or awkward conversations down the track.
- Reduce legal risk – If a practitioner tries to take clients with them, you’ve got enforceable terms in place to protect your business.
- Enhance your clinic’s value – When it comes time to sell or scale, clearly defined client ownership makes your business more attractive to buyers and investors.
- Safeguard NDIS client relationships – For registered providers, protecting your client base under the NDIS is not just smart, it’s essential for compliance and long-term growth.
Too many clinic owners only think about these issues after something’s gone wrong. But putting proactive agreements in place now is one of the simplest and smartest legal protections you can invest in.
Not Sure What Your Agreements Say? We can help.
If you’re not 100% confident that your current agreements cover things like client ownership, post-engagement restrictions or data handover obligations, you’re not alone.
Most allied health clinics we speak to are running on old templates, DIY documents or generic contracts that don’t reflect how their business actually operates. And when something goes wrong (like a practitioner taking clients or a messy contractor exit), those gaps become very real, very fast.
Whether you’re a solo operator growing your team, or an established clinic with multiple practitioners, we make sure your contracts clearly spell out who owns the client relationship, what happens when someone leaves, and how to protect your business long-term.
Here’s what you get with us:
- ✅ Fixed-fee pricing (no clock-watching or surprise bills)
- ✅ Tailored legal documents that reflect how your clinic actually works
- ✅ Plain English drafting because you shouldn’t need a law degree to read your own contracts
We’re commercial lawyers who get allied health. And we’re here to make sure your legal foundations are strong, so you can focus on what you do best, helping people.
Ready to Protect Your Client Relationships — in Writing?
Whether you’re running an NDIS clinic, a multidisciplinary allied health practice or growing your team of contractors, it’s critical to have legally sound agreements in place.
At Rise Legal, we specialise in custom service agreements for allied health providers, with clear clauses around client ownership, practitioner obligations, and data protection.
Don’t wait until a valued team member leaves and takes your clients with them. Let’s get ahead of the risk now and make sure your client relationships are protected not just in practice, but legally documented and enforceable.
Book a free, no-obligation chat with our legal team today to discuss your agreements and how we can help you safeguard your business.
Remember, while this information provides a general overview, legal advice tailored to your specific circumstances is invaluable. Don’t hesitate to contact Rise Legal for personalised guidance or book in a free Discovery Call.
Disclaimer: This blog post is intended for informational purposes only and should not be considered legal advice. Consult with a qualified commercial lawyer for personalised advice related to your specific circumstances.
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