What Is a Freelancer Agreement?
A freelancer agreement is a document between a company and a freelancer who want to work with each other. It contains the mutual understanding of the two parties, which pertains to their duties and obligations for a project or work. This agreement includes the termination terms, general provisions, warranties, and more.
On the same note, according to Upwork, Americans who perform freelance work are around 57 million, which can also imply that they need agreements. This record will determine the scope of their duties and obligations with a client or company.
How to Create a Freelancer Agreement
Creating and developing an appropriate freelancer agreement document is never hard. Just follow our tips below.
1. Simplicity Is a Must
If you think you need legalese terms in your agreement, you have it wrong. Simple vocabulary, clear clauses, and concise sentences always create a valid agreement than convoluted ones.
2. Identify the Parties Involved
Never overlook writing the legal names of the parties involved. If you're dealing with a company in your mutual agreement, you must include the full company name and your full name as the freelancer. This part is crucial because the document has to contain the full names of the parties under for it.
3. Specify Duties and Obligations
Whether it's a retainer agreement or a freelance consultant contract, you must be specific with your duties and obligations. Not writing all the responsibilities agreed upon is like writing them on the sand—one or both parties involved will forget the details regarding it. To avoid this, write all duties and obligations expected for all involved.
4. Add Payment Responsibilities
If you want the other party to pay you for your service as a freelance writer or a freelance graphic designer, be sure to include the terms in your payment agreement.
As you know, money can cause a lot of disputes. That's why you have to write every detail about it. Include the date when you should get the payment, requirements, and the method of payment.
5. Include Termination Grounds
To ensure that both of you know your limitations, arrange the termination grounds. These grounds should be specific and realistic. For instance, you may say that the other party has the right to terminate the basic agreement if the other has violated one of its terms at any given date.
What is the difference between a contractor and a freelancer?
Some people may think that contractors and freelancers are one and the same. But there's a difference between these people. A freelancer can work for different clients and projects at a time. Oppositely, a contractor can only work for one client at the moment.
How do I protect myself as a freelancer?
As a freelancer, you may worry that people might take advantage of you, especially because you're working independently. But here are some tips to guard you:
- Always have a contract or agreement
- Request for upfront payment
- Have a liability insurance
Are freelancers self-employed?
Freelancers are self-employed individuals. They don't work for anyone or a company.
Is freelance a job?
Yes, freelance work is a job for people who don't commit to companies or organizations. They are basically self-employed people who pay their taxes.
What are the three types of employment status?
According to Sarah Buxton's article in BDJ Team, the three types of employment status are: