Sometimes a business may need a specific work or project executed on a temporary basis. So, instead of hiring a permanent employee, they may prefer to avail the services of a freelancer. A freelancer is a person who specialises in his/her own field of work and works on an assignment basis for one or more companies.
A freelancer contract is an agreement between the freelancer and a company. It outlines the various terms and conditions regarding the work undertaken by the freelancer. This agreement is essential as it helps to build a strong and fair relationship between the company and freelancer.
Details included in a freelancer contract are:
- Scope of work: This clause is the most important. It relates to the nature of work and activities to be undertaken by freelancer
- Timelines: This sets a deadline for when the work should get finished and the consequences of not delivering the work on time
- Compensation: The amount to be paid to a freelancer for the work assigned. Also, when such fees become due and the mode of payment of the fees must be specified in the agreement
- Termination: The circumstances under which the company may terminate the services of a freelancer. Also, any compensation payable to freelancer in case of termination by the company
- Advance Charges, if any: If any advance to be paid to the freelancer before the work, then such amount should also be mentioned in the agreement
The contract protects the interests of both the company and the freelancer as it clearly lays down the scope of work and the overall terms and conditions related to project. Even if any dispute arises between the company and freelancer, the contract serves as a legal guide for the settlement of such disputes.Thus, it is always advisable that the companies hiring freelancers enter into a contract with the freelancer in order to build a fair and mutually beneficial relationship.