The UK has a thriving freelance economy, with over 4.6 million people working for themselves. The country’s culture of entrepreneurship means that many are willing to take the plunge and start freelancing without professional advice or support.
However, it can be tough to get clients when you are inexperienced – how are you supposed to know what you should offer your services for?
How do you persuade customers to buy from you rather than another company? What should you do if things go wrong – should you try to resolve the issue yourself or hire a solicitor?
Here Are Some Of The Legal Measures That All Freelancers Need To Take When Offering Their Services
- Take Contracts Seriously
When dealing with business customers, you must have a clear freelance contract that covers how the work will be done, what happens if either party breaks their part of the deal and what compensation is available in the event of a dispute. Without having signed freelance contracts in place, neither party can hold each other accountable for breaking their promises.
The most important aspect of any freelancing contract should be making sure both parties are on the same page about how much they agree to pay, such as the inside ir35 take home calculator. A common mistake made by new freelancers is suggesting rates that are too low to cover their costs – this immediately makes them uncompetitive next to larger companies that spend more on wages or advertising costs.
Freelancers who undercharge miss out on vital profit and put themselves at risk because it becomes easier for customers to find someone willing to work for a lower price.
When setting the amount you want to charge, it is important to look at how much your time is worth and how long it will take you to complete the task and any extra expenses that may be involved.
In addition, you should research your target market and find out what other companies in similar positions are charging – this can give you a good idea of where to set your own rate so that you remain competitive without undercutting others.
One way around this issue is telling customers a fixed price instead of an hourly one – if they know how much their bills will escalate every hour, they will be less likely to push for additional work or pay less than originally agreed.
- What Is A Freelance Contract?
A freelance contract is a legal agreement made between one or more parties (freelancers) and an organization or individual (client).
The purpose of this contract is to make the terms and conditions of any working relationship clear to all parties. This ensures maximum accountability; therefore, preventing potential disputes from arising later down the line.
A contract for freelance work should always be written up, even if only verbally agreed. It will then act as proof that both parties set out certain terms at the time of beginning work, which also acts as protection if there are any disagreements about what was said.
Many freelancers tend to avoid signing contracts with their clients because they don’t want limits placed on what they can do – however, having a contract does not necessarily mean that the freelancer can not do anything they want.
Not only will a contract prevent any disagreements about what was agreed upon, but this type of document can also be used in court if things do go south and legal action is taken. In addition, having a freelance contract forces both parties to actively think about what elements need to be stipulated for it to be valid and legally binding.
Certain Core Elements Should Always Appear When Drafting Up A Freelance Contract:
- The Goal Of Work
What needs to be done?
- Compensation
How much money will you get paid? When will you get paid? Are there regular milestone payments involved with payment on completion of each stage of the project etc.?
- Ownership
Who owns the final product? If you create something, do you automatically own it, or do they have a right to revoke your ownership?
- Duration
When will the project start and finish? Or when does the freelancer’s service become effective and expire?
- Liability/Warranties
What is their responsibility for loss, damage, costs etc.? Will they be liable if someone sues because of a problem with work carried out by them on your behalf? How much time should you spend checking overwork before submitting for payment?
There are a few general things that all freelance contracts include.
A List Of Conditions Included In Many Standard Agreements Are:
- A Description Of The Job
How will you communicate? What exactly will be done, and how much time should it take?
- Confidentiality
Any work must remain a secret throughout and after completion. Reflect on this throughout your contract to avoid any mishaps later on.
- Intellectual Property
Who owns the final product from the project? If created by freelancers, do they automatically own the rights, or is there a clause that states that all rights are transferred to the client once work has been signed off?
Whilst most standard freelance contracts have set out rules, there is still room for manoeuvre, so if you want something particular included in your, or a certain part to be omitted, this is where you can suggest it.
There are different types of freelance contracts depending on the type of work being offered, so be sure to find the most suitable one for your circumstances. e.g. Contract for photography or painting and decorating.
- If A Party Breaks Their Part Of The Deal
It is important to understand what might happen in the event of either party breaking their part of the deal. This could be because the customer has refused to pay for your services, or you have not delivered work that meets their standards.
The best way to settle these issues is to set out how much notice either party should give when they need to cancel, especially if it will result in a loss of earnings or time spent creating the work. It may also be necessary to add that breaching this clause could lead to legal action being taken against them.
Another common requirement is putting down what happens if either side breaks their assurance – usually, this means somehow compensating the other party for any loss they have incurred due to it.
Breach of contract can become a major issue if it is not dealt with in the early stages of the freelancing process – it can be difficult to resolve after work has been undertaken because one party might refuse to complete their side.
The best way for freelancers to avoid breaching contracts and having disputes arise is by treating them seriously from the very beginning through preparing an appropriate contract and adhering strictly to its terms.
- Legal Action
If clients fail to pay for your services or you have had problems completing work, there are legal measures that you can take to recover what is owed. However, this should only be done as a last resort because pursuing small claims court cases can be long-winded and involve lots of paperwork. It also costs money to set the ball in motion, making it an unattractive option for most freelancers.
A common solution when dealing with payment issues is sending a letter before action, which is the first step in taking legal proceedings. This gives the customer notice that you are unhappy with their actions and encourages them to resolve the issue between themselves.
If they ignore your correspondence, it can be necessary to move on to another type of letter – either asking them to pay up or acknowledge what they owe in full immediately. Ultimately, if none of these attempts works, then your last resort will be legal proceedings – this means issuing court papers through Her Majesty’s Courts & Tribunals Service.
Cards with contact details should be kept readily available so that you can take advantage of the small claims court if you do need to.
Freelancers should always try to resolve issues with clients without resorting to legal action, as it can be time-consuming and expensive. The best way around this is by preparing a contract that states the terms of the agreement clearly so that both parties know what they are committing to before starting work.
While having disputes with customers is unfortunate, it is usually possible to resolve them without litigation – this can save time and money for everyone involved.
In conclusion
Freelancers should take positive steps from the very beginning by using contracts that set out agreed terms between themselves and their customers. This reduces the risk of either party failing to meet their obligations because they have been made clear from the beginning.
However, breaking contracts can lead to disputes that result in parties taking each other to court, so it’s best if both sides know what they are committing to before starting work.
Therefore freelancers should take all possible measures to resolve payment issues without having to resort to litigation – this helps avoid time-consuming and costly procedures that can be difficult when work has already been introduced.
