Navigating legal issues: Contracts and agreements for freelancers
There’s no denying that self-employment brings many perks. From choosing your hours to setting your rate, freelance work is a flexible option that entices many creatives. But while being your own boss means no dependence on an employer, it also means you have to handle the legal aspects yourself.
Second only to tax returns, contracts are the bugbear of many freelancers and self-employed small business owners — but they don’t have to be so scary. Read on for top tips on handling contracts and agreements that keep you protected.
Do freelancers need contracts?
Have you ever agreed to help a friend out using your professional skills? Maybe you’ve arranged work with a local business or a networking contact by chatting over coffee. While discussions about work can be great and lead to excellent collaborations, it’s always important to get your agreement in writing.
Technically, freelance contracts are not a legal requirement. However, they are highly beneficial to all stakeholders, particularly when you’re managing multiple clients.
Your friend, neighbour, or client may say they have every intention of paying, but having a written contract gives you peace of mind knowing they will be obligated to fulfil their side of the bargain — just as you will. It protects both parties.
Having a contract for every freelance project also showcases a sense of professionalism, highlighting that you take your business seriously.
What to include in a freelancer contract
The word ‘contract’ evokes the prospect of long documents and legal jargon. But don’t panic — putting a freelance contract together doesn’t have to be complicated. There are a few key elements to include:
Your name and the client’s name or business
The agreed pay (whether it’s a fixed fee, hourly rate, retainer or other
Payment terms — will it be a lump sum or will you be paid in installments?
The scope of work — what will you be doing for the client? Include logical parameters such as a timeframe, the deliverables, and whether you’re willing to make revisions. Depending on the project, it may be helpful to add specific milestone targets.
Tips for drawing up freelance agreements
Once you have all the basics covered, there are some steps you can take to ensure your freelance contract has everything you and the client need to proceed with the project.
Make sure it’s clear and concise
You want your contract to be comprehensive but easy to read and understand. This will help avoid any confusion or misunderstandings.
Manage expectations
Being clear can help make sure everyone’s expectations are managed. Try to avoid terms like ‘as soon as possible’, as these are subjective. If you’re setting out timeframes, aim for a set number of hours, weeks, or days. You can always err on the side of caution if you’re unsure how long a task will take you.
If this is an area you need a hand with, why not consider hiring a virtual assistant to handle administrative tasks and ensure clear, timely communication with clients? This can help you focus on your core work and meet deadlines more efficiently.
Tailor your contract to the client
Having a template to follow can be helpful when drawing up contracts for your freelance clients. However, it’s important to ensure your agreement is relevant to the client and the project.
Consider adding a statement of intellectual property
It can be a wise move to include a statement showing that, until you receive your payment, any work you create for the client remains your intellectual property.
Keep your terms and conditions up to date
If you choose to use a contract or terms and conditions template, make sure it’s up to date before sharing it with new or prospective clients. Consider aspects such as your rate of pay, working hours, and notice period.
Streamline your projects with clear, concise contracts
Freelance contracts aren’t a legal necessity — but they can be highly beneficial to both you and your clients. With everything set out in writing, you can feel confident knowing where you stand and what’s expected of you.
Fancy more advice on navigating the freelance world? Stay up to date with the Bizzybee blog.