Eight Terms and Conditions You Must Include in Your Freelancing Contract

Business

  • Author Elvin Picardo
  • Published August 1, 2023
  • Word count 880

If you’re looking for a freelancer to join your team, you must think carefully about the terms and conditions of the service you’re looking for.

After all, freelancers don’t fall under the remit of your employees and follow different rules of engagement.

To help you get the most out of your relationship with a freelancer, here are eight terms and conditions you should include in your freelancer contract.

1 – Agreed Rates

When you work with freelancers, you will find that everyone charges slightly differently. As you prepare your contract, consider the following:

• How will time be billed? Per project, per hour, week/month, etc.?

• Which currency are you using?

• Is the rate fixed for all projects? Or will it change depending on the scope?

• Are there any extras that need to be considered?

Getting as much information as possible in a freelancer contract is essential, as disagreements over rates are among the leading causes of contention between freelancers and their clients.

2 – Terms of service

The terms of service refer to the scope of the agreed delivery. The key here is to make the terms of service as simple as possible. There’s no point in filling it with legal jargon or industry-specific acronyms that are difficult to understand!

A few sentences and bullet points detailing what has been agreed between the freelancer and company is sufficient and will ensure more room for clarity and understanding throughout the working relationship.

3 – Payment terms

Because freelancers are self-employed, knowing how they will be paid from the outset is essential. And frankly, there is no industry standard for freelancer payments, so the onus is on each company and freelancer to decide for themselves.

Here are some things to consider:

• How should the payment be made? BACS? E-Wallet (PayPal, Neteller, etc.)?

• When should the payment be made? Upon receipt of invoice? Within X days?

• Are there any payment charges that need to be accounted for? (Forex charges, bank charges, etc.) And who is liable for these costs?

• What currency will the transaction be completed in?

Timely payment to freelancers is essential and crucial for your long-term relationship's success. It’s unfair to expect freelancers to chase up payments with your accounting team.

4 – Contact details

Given the digital world that we currently live and work in, there are so many ways in which companies keep in touch with their employees and the freelancers that they work with. So, it would be best to be clear about how you will communicate with your freelancer. Here are some essential points to think about:

• How will daily communication work? Should it be done via email or a messaging app like WhatsApp or Telegram?

• Do you require a regular video chat with your freelancer to check in on the project? If so, what platform will you use?

• What are your office hours? And when can you reasonably expect to communicate with your freelancer? Remember – time zones can cause confusion when it comes to communication, so make sure you’re explicit from the outset.

Get as many relevant contact details in the freelancer contract as possible to ensure you know how communication will work.

5 – Key deliverables and timeframes

One of the most important aspects of a freelancer contract is the key deliverables and timeframes articulated from the offset. You will need to include the following:

• What exactly is the freelancer responsible for? Include a detailed brief of the project.

• When should the project be delivered by? And are there any key milestones that need to be met?

When working on your contract, ensure you’re explicitly clear, particularly where deliverables and timeframes are concerned. It’s not fair on either party if the details of the projects are up in the air, so you should be crystal clear on what to expect from one another.

6 – Ownership/Copyright/NDA

Upon completion of the project, who will own the content produced? If your company wants to maintain full rights and ownership over the content, the contract must stipulate this.

Equally, be sure to note down any copyright terms that are relevant to your company and brand. Consider drawing up a non-disclosure agreement (NDA) that protects the integrity of the details you share with a freelancer.

7 – Cancellation terms

Despite your best efforts, some collaborations with freelancers don’t work out. Therefore, it’s essential to include clear cancellation terms in the contract that enable you to get out of any agreement and look for a more suitable candidate.

Ultimately, the cancellation terms can relate to various aspects of the operating agreement, such as non-deliverables, late deliveries, or underperformance about the terms of service. Ensure you’re explicit so you’re not stuck in a bad deal for your company.

8 – Signature and Agreement

Last, you must include a section for both the hiring manager and the freelancer to sign and date. You can use e-signature applications to formalize the process and make the signatures legally binding.

Final thoughts

When you’re putting together a freelancer contract, it’s crucial that you include as much relevant information as possible. Confusion and misunderstandings tend to arise from relationships that have been started at a whim, so be sure to take the time to put together a detailed contract that explains your key outputs and expectations.

Elvin is a tech pro adept at simplifying complex ideas into engaging content. Author of two e-books and countless articles, he’s also the founder of RadialHub.com, bridging freelancers and clients while providing resourceful insights. Elvin’s passion lies in project management and writing, with downtime spent on outdoor pursuits and music.

Learn about how RadialHub can help you and your business at https://radialhub.com

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