UK freelancers need all the help they can get to make sure they have fair contracts. In this post, we’ll explain six key tips — including how to get a freelance contract template using LawDistrict UK, how to avoid common red flags, and more.
1. Know Your Scope
Every freelance contract should set a clear scope that adequately defines the services you’ll be offering. It should clarify where your role starts and ends, and only mention ad-hoc work if you’ll get fair compensation.
Scope creep could quickly burn you out if you don’t protect against it, no matter your sector. For example, developers may be asked to integrate more plugins, and social media managers might have to balance more platforms.
Always ask for more money in return for extra work. Otherwise, you’ll work more for less — and possibly stretch yourself too thin in the process.
2. Use a Template
The best way to navigate a self-employment contract is to bring your own. This means you’ll set your work’s terms, which is the main reason many people turn to freelancing. Even if the client insists on their own contract, check that it has every field your template has.
Asking someone to create a contract for you can be time-consuming and expensive. A template site will offer freelancer agreements cheaply or even for free. You’ll also be able to customise it, allowing you to build a contract that fits your niche.
For example, you can decide how often you want to get paid. This can be on a per-project basis or when the work hits specific milestones. Again, if the client insists on a form they’ve created, it might be worth checking it against a template for any potential omissions.
3. Clarify Your Independence
Another major draw of freelancing is keeping control of your schedule and workload. Watch out for contracts or clients that try to infringe on this. In most sectors, you should be able to work at your discretion.
An arrangement that doesn’t respect your independence might be disguised employment. This is when clients treat you as a full-time employee loyal to their company without giving you any of the required benefits.
Only sign a contract if it lets you keep your independence. If they want you full-time, they should compensate you appropriately or set up an employment contract instead.
4. Watch for Red Flags
Accidentally signing up for full-time employment isn’t the only issue you need to watch for. Here are some other problems that can crop up if you sign without reading:
- No fair termination clause, or one that only the client can take advantage of
- Overreaching non-compete clauses that hinder your ability to find new work
- Unfair IP clause that doesn’t even allow you to put the work in your portfolio
- One-sided liability that leaves you on the hook for damages a client causes
- No dispute resolution clause, leaving you with no way to deal with conflicts
- Unclear work timelines, which could prevent you from taking on new clients
- Automatic renewals could lock you into a poor work arrangement for longer
- The client may even attempt to include a clause that waives your legal rights
If something doesn’t feel right, address it — this could end with you negotiating a new clause, or possibly walking away from the deal.
5. Include Clear Payment Terms
32% of freelancers face regular late payments. If you’re living client-to-client, one payment delay could be enough to cause a serious headache. This means your contract needs clear, thorough payment terms.
You should outline at least two payment methods in your contract and invoices; it’s always worth negotiating the most convenient options in advance. You must also include late payment terms, which charge an extra fee for late payments.
Late payment terms usually only take effect a month after you give an invoice. Don’t be afraid to walk away from clients who refuse such a basic protection.
6. Consider Confidentiality
Many clients trust their freelancers not to divulge their personal or company details, and might ask you to sign a non-disclosure agreement. If it’s too broad, you won’t be able to include your hard work in your freelancer portfolio.
Your NDA shouldn’t last forever; most fair ones last 2-5 years. This could be part of your original contract, but will typically be in a separate document. Compare this with a template, and always check what you’re agreeing to.
A confidentiality clause isn’t an instant red flag. It’s perfectly normal, especially when you’re not a full-time employee and could sell your company secrets to a competitor. However, if their NDA terms don’t seem fair, don’t accept them.
Final Thoughts
Self-employment offers tremendous freedom, but only if you know what a fair contract looks like. The right template can give you all the benefits of freelancing while helping you stay ahead of all the usual caveats.