More and more people are choosing the self-employed route. I often discuss issues relating to being a freelancer on this blog, but this time, I’d like to do things a little differently. What if you want to work with a freelancer? Whether you’re in fashion, tech, arts, or any other industry, here are some clauses you definitely shouldn’t forget about when hiring your next independent contractor.
Of course, please take this as legal information and not legal advice. If you have any questions regarding the legal aspects of hiring a freelancer, send me an email at info@artylaw.ca.
#1 Mandate
The first thing you need to include in your agreement is a clear definition of the mandate. What are you hiring the freelancer for? Try to be as specific as possible in regards to the nature of the service provided, the project worked on, etc.
#2 Price and payment terms
Price and payment terms are essential, as they are often the cause of many legal disputes. You want to include the freelancer’s rate (if you’re paying him on an hourly basis) or the amount listed in the quote you were given. Make sure you are aware of how many revisions the quoted priced includes and how much it will cost for additional changes you might ask for.
As for payment terms, you want to determine a time to receive the freelancer’s invoices (every 1st and 15th of the month, at the end of the project, etc) as well as a payment term for the invoices (15 days, 30 days, upon receipt, etc).
This is the clause where you’ll also want to include any advances payable.
#3 Intellectual property
This is a clause that is missing from most freelancer contracts I review and that is essential. When an independent contractor creates something, the intellectual property, whether we’re talking about an app, a logo or a picture, belongs to the freelancer. It does not matter whether you paid for it or not. In order to be able to use the work you are paying for, it is important to include a licensing clause.
#4 Confidentiality
When working with a freelancer, you might be in situations where you will have to divulge some confidential information such as processes, lists of clients, financial data, current business plans, and more. In order to protect yourself and your business, you might want to include a mutual confidentiality clause that will cover data from both parties.
If you have any additional legal questions you would like to ask me regarding hiring freelancers, do not hesitate to send me an email at info@artylaw.ca or click on the link below to schedule an initial consultation.
