What is a Freelance Agreement?
A freelance Agreement is a legal agreement between the freelancer and the company where they agree on the project to complete and work to deliver. The contract outlines all terms and conditions regarding the work between the freelancer and the company, which ensures better understanding and engagement. Additionally, It sets clear expectations between the two parties for a specific project over a set period of time. This type of document is legally binding and also ensures that everyone working on a given task is on the same page in terms of service guidelines.
This contract exists to protect both the freelancer and the company. The freelancer is getting a guarantee of the money they will receive for the work delivered and the company is also getting a guarantee of the work and deliverables they can expect.
People also refer to a Freelancer agreement as Client/Service Freelancer Agreement, Company Contractor Agreement, Contractor Agreement, Freelancer Agreement, Freelancer Contractor Agreement, Independent Consultant Agreement and Independent Contractor Agreement
Who is a Freelancer?
A freelancer is a self-employed individual. He may represent a company but does not necessarily have a particular employer. Freelancing is abundance in the fields, professional and industries like music, journalism, publishing, screenwriting, filmmaking, app design, web design, website development, copy editing, etc.
Documents required to prepare a Freelance Agreement
- Address proof of parties that are involved in the agreement such as PAN, Aadhar etc.
- Identity proof of the business or company and the freelancer such as CIN
- Documents that verify the names of the involved parties or organisations
Benefits of a Freelancer Agreement
- Exercise Legal rights
- The parties express their will, rights, and duties in an agreement which reduces the scope of disputes.
- Secures payment
- Additionally, It secures the payment of the freelancer and avoids any losses for the company.
- Scope and Confidentiality
- Agreement also involves clauses that state the compliance with any confidentiality that the parties may prescribe in their contract.
Elements of a Freelancer Agreement
- Scope of work: Defines the freelancer’s nature of work during the tenure of the agreement
- Compensation: The agreed amount that needs to be paid after completion of work
- Timeline: A deadline set mutually by both parties
- Late payment clause: A freelancer can charge an interest rate or set any other terms
- Advance payment: This clause allows freelancers to charge a specific sum in advance
- Termination: Circumstances under which the company can choose to terminate the contract
- Confidentiality: During the tenure, a freelancer should not disclose the work information to any third party
- Jurisdiction and dispute resolution: Depends on the nationality of both parties
FAQs
Freelancers are independent persons who are self-employed and a contract that a company makes with the freelancer is known as freelancer agreement or contract whereas Consultancy agreement is a service agreement made to get a particular work or project done within a period of prescribed time.
Oral submissions made are hard to prove, as a result, contracts such as Freelancer agreements are made.
The most common areas in which freelancers work is Content Writing, Music production, Journalism and editing, App Design and also Web Design.
Hey @HarshitShah
The things to include in an employee’s personnel file are: