In any kind of business, a contract must be introduced. The agreement is a necessity at the time of hiring. It doesn’t matter if one is hiring a permanent employee or a freelancer, without a proper contract, the show cannot even begin. Contracts are formed to legally bind both parties together so that the smooth running of a business can continue.
A written contract or agreement holds a different value than a verbal agreement. As it is documented in a paper, both sides can be confident of each other as the intentions are clear in the document, thus building a sense of trust and confidence.
Hiring freelancers can be easy if proper steps are taken during the entire process. This article will explore how an contract format should be, with freelancers. Before that, let’s find out why there is a necessity for an contract while hiring freelancers.
“A verbal contract isn't worth the paper it's written on”.
Why a Contract is Necessary to Hire a freelancer
As mentioned above, the contract is needed in any kind of hiring. An contract can save the relationship between the client and the freelancer and prohibit the strain that can cause by an argument if a miscommunication somehow arises. This ensures both the party's interests to be protected.
The reasons for the agreement are:
- A proper explanation is provided in an contract about the tasks that are required to be done by both the employer and employee; it is to avoid any kind of confusion.
- An contract is formed after a lot of negotiations; here the duties are elaborated to the freelancers so that no problems can arise.
- Especially in the case of freelancers, a specific time needs to be mentioned, by which the tasks need to be completed. The contract helps in specifying the time frame for all the duties that are assigned to the freelancer.
- A proper contract gives an assurance that payment won’t be compromised.
- If a disagreement occurs, the contract will save the relationship from getting any worse.
What should you include in a Freelance Contract?
This agreement is done to keep both parties happy and the entire course of work dispute-free. Bad communication can end lots of good things, to avoid that a written document provides all the elements that are needed to maintain a good relationship between the company and the freelancers. Those elements are:
An Introductory Statement
This section provides an overview of the contract to the freelancers. The positions are mentioned and the tasks that have to be done by the worker are stated in clear and simple language.
The name, contact number, and email address needs to be mentioned. Then the date that the freelancer has agreed to start the work must be mentioned.
Prior discussion has to be conducted regarding the starting date. The overview is given so that the freelancer can understand the things that are expected from them during the course of work.
Scope of The Project
Another important clause that will state the nature of the work, it is included to protect the freelancer from any extra and unreasonable works that may be asked by the client. A fine line needs to be drawn that will ensure the security of both sides.
The time it will take for the project and the number of hours the freelancers are assigned to work. This somehow will also refrain the relationship from getting bitter between the client and the freelancer.
Charges For Working On The Project
In this section, the payment of the freelancer for their work will be mentioned. If they are going to take the payment regarding the hours they have worked or they are going to get paid per product and will receive the payment after the completion of the project.
Here, the method of payment must be specified, how it should be paid, and the duties that must be completed to attain that payment.
Deadline For The Project
The time allotted for the project to the freelancer should be mentioned here, and the deadline for that work as well. If the deadline is not met, the consequences should be mentioned here, if there are any.
Terms And Conditions
This is probably one of the most important parts of an contract. This part clearly states the expectations which are needed to be fulfilled by the freelancers. This gives transparency between the company and the worker.
In this section, all the services that are required during the time frame of work must be mentioned properly.
The Project Rights
The contract must mention the rights clearly of the projects that are being done by the freelancer for the company. It should elucidate, who will hold the ownership after the completion of the work.
The minute the freelancer receives the payment, they cannot resell the product that has been completed by them to anyone else as the rights of that project are being acquired by the company itself.
The process of cancellation must be defined in the contract, so as to avoid confusion. If an ongoing project is cancelled, the compensation amount must be mentioned.
Expenses For The Equipment
While working for the projects of the company some additional tools can be required, the contract must specify, who is going to pay for those tools, the freelancer, or the company themselves.
The signatures of both the parties are needed to complete the contract, only then it would be valid.
Taking freelancers for projects has now become almost normal in every business. Companies are now favouring freelancers over permanent employees. While doing all this, the proper contract has to be formed for the interest of both the company and the freelancers. Plus, to avoid and solve any kind of dispute in future a written contract must be present.
How many hours do freelancers work per week?
A Freelancer works approx. 40 hours a week.
Is freelancer an employee?
Freelancers are self-employed and are not permanent employees of any organization.
Do you need a Contract to Hire Freelancers?
Yes, you should always present a contract before hiring a freelancer.