The contract is another step after hiring a freelancer, because of this it is essencial to formalize the agreement between the parties. Check out 10 tips for creating a good one
When a new project starts, a lot of issues come to the freelancer and project manager’s mind, such as whether both sides are going to they will fulfill the duties already agreed upon in the hiring process. However, there is an agreement to endorse the duties and responsibilities of each side: the contract.
As a self-employed, the freelancer is responsible for finding his/her projects, however, on platforms such as Remotify, the freelancer will be able to be selected according to their abilities. For this reason, a clarified contract will help the parties to understand each other and keep the payment according to the agreement, hours, tasks, and updates. All promptly.
The contract will be created by the contractor after the first steps have been done and before the onboarding. On our platform, the contract will be downloaded and the freelancer will be able to read and clarify all the clauses before signing.Â This contract will include the company policies and terms, so the parties will be aware of each duty, project scope, payment, copyright, and other relevant details about the project.
Why write a freelancer contract?
With legal documentation, there will be a guarantee about the duties of each side and also protection of data, information, and policies of the company that is hiring the freelancer. This contract also guarantees a judicial and legal agreement binding between the parties
The contract will be responsible for avoiding any kind of misunderstanding and disinformation during the project. It is important to describe and explain the maximum mistakes that can happen during the journey because with the contract all parts will be guaranteed to be solved.Â
Another important point for emphasizing is that when you write a contract you establish some agreement with the freelancer about the work labor, remembering that the company is following the rules in which that country is based. However, the freelancer might be in another country, and he/she will be responsible for his/her own taxes payment, insurance, and other payments belonging to labor rights.
Also, when the agreement happens during the interview and after the freelancer accepts onboarding, the contract will guarantee that the project will be done according to the informal agreement. So payment, deliverables, updates, and other points will be legally described in the contract.
According to the complaint term from the contractor company, the contract will be guaranteed that the compliance terms have been strongly presented to the contractor and that respecting and following the labor rules as a freelancer has been legally prosecuted. The project’s privacy and confidentiality will be described in the contract.
The main points to add to the contract
To start a contract, it is required to add the name of two parties, a brief description of the project, and what the contract is about. In addition, an explanation about what the project is and the expectation from both sides as data, milestones, deadlines, and other details.
The contract will be very useful to define the payment, how it will be paid and when. Also easily the freelancer creates them directly on Remotify. To be finished, don’t forget the parties’ signatures. There is a lot of software for a digital sign, however, the freelancer can print and scan, as the contractor.Â
At first, below we described some points to include in the contract:
- Names, contact information, and dates
- Your role and responsibilities
- Payment information
- Confidential information
- Independent contractor terms
- Limitation of liability
- Termination terms and Indemnity
10 tips for writing a concise contract
1 – Contact detailsÂ
Firstly, the full name of the freelancer and the contractor must appear at the beginning and throughout the contract, to be aware of who is the duties and responsibilities before that clause is presented and explained. The company also should mention its name and other details about that institution. The freelancer will add his/her address, phone number, e-mail address, and another detail to help identify the person to who the contact belongs.
Do not forget to add the data of the contract that has been written and the data of the signature.
2 – Project scope
Describe the expectations and details about the project it is important to clarify with the freelancer, what is the scope and which tasks will be developed during this journey. Additionally, a list of the steps, including the description of the service. This clause will match with the following clause that explains the deliverable and after the payment.
Using Remotify the freelancer will be able to access the project scope during the selection, however, it is very important also to add this information to the contract.
3 – Deliverables
Here is the main point about the project, when it should be done. In this role, you will describe the exact data for starting and the expected day for accomplishing the project. Furthermore, it is important to mention the deadlines and if the project has different steps, do not forget to clarify each one.
4 – Payment information
In this clause, you will define the payment method, timeline, how much, which currency, which bank, country and all other details about the finance part will be described here. It is important to explain how you agreed with the freelancer, per hour or project, that means the agreement had been in hourly rate or fixed price, and which specific milestones the freelancer will be paid. It is essencial to include the payment of materials and other costs spent during the project, so define and describe detailed who will pay, according to the agreement.
On Remotify, the invoice and payment will be made through the platform, so our team will support will in these steps, as in all the previous or next ones.
5Â – Ownership
This is the clause to clarify who is the owner of this project or to define better the copyright. As a freelancer sometimes working for international companies and secrecy projects, it is important to explain the rights and the importance to do not using the same ideas in the next project with another company.Â
6 – Confidentiality
As we mentioned before, beyond the owner of the project, also describes the confidentiality and detailed non-disclosure agreement (NDA) -Â legally binding agreements that define the confidential relationship and the forbidden of disclosure any information to society and competitors. This clause will define the privacy and confidentiality of keeping any receipts and details about how the project had been made.
7 – Limitation of liability
If something is wrong who will be responsible and how indemnity will be paid? Here it is to avoid any other issues after the project delivery. And if after some reviews and analysis be confirmed that there was a failure to understand and the project was delivered wrong, which repairs and how to proceed.
8 – Contractor and freelancer terms
Here is a part to define the extra contractor terms and conditions, and also add the freelancer terms, if there are some extra duties or rights from each side, it is important to clarify this clause to avoid any misunderstanding in the future.
9 – Termination terms
In this term, you must add all fees if the contract is completed ahead of schedule, that is if one of the parties wants to discontinue the project and how the payment will be made until what has already been done.
Also add some necessity of changes or revisions after the project had been delivered, how it will be made, the deadline, and to who it will be communicated.
10 – Dispute reconciliation
To finish, if by chance something happens and there is a need to dispute something in court, in this clause you can explain the steps and how this could be done peacefully without the need to go to court. Mainly because many freelancers are in other countries and regulations may proceed differently. In this clause information about a legal agreement may be described.
The benefits of writing a freelance contract
Both parties will notice the benefits of keeping a guarantee and legal agreement between signatures and legal conclusions. After all, if you remember any other points or general clauses to add, write them in the contract and explain detail for the easy comprehension of the freelancer. Also, this section can include protection, other statements, and legal disclaimers.
Another point to emphasize is the latest payment, if something happens and the payment does not deliver is the exact data as agreed in the contract, you can write a clause for late payment terms. It will be compensated for the lost time and how much.
So remember, it is absolutely important the contract step because it will avoid any misunderstanding and failure between the parties. And will also give professionalism, formality, and legality to the project
We from Remotify will be available to assist you during the journey of writing a contract and also to support the freelancers and the signature and appreciation of the clauses described in the contract.
As soon, we will prepare the Remotify freelancer contract model and provide it for all of you. I have found some website with freelance contract examples and you can download it. However, if you need support to write yours, please contact us, and check our platform and details here.