Freelance contract: how to write one, and what not to forget

A freelance contract is an essential legal tool for clients who want to hire independent professionals flexibly and efficiently. It offers the possibility of hiring specific expertise without the obligations of an employment contract, as these contracts usually work per assignment. We have gathered insights from many of our clients over on Striive, and here are their best advice!

What is a freelance agreement?

A freelance contract is a formal agreement between an independent professional and a client. It outlines the scope of work, timelines, payment terms, and other key conditions. In short: it sets the foundation for a clear and trusted collaboration. At HeadFirst, we believe that strong partnerships start with clarity. A freelance contract isn’t just about legal protection: it’s about mutual understanding. It helps both sides feel confident, aligned, and ready to create impact together. Because when expectations are clear, professionals can focus on what they do best.

Advantages for clients

Using a freelance contract offers several advantages for clients. For instance, they can respond flexibly to fluctuations in the market by hiring specific expertise temporarily, without entering into long-term commitments. It also saves costs, as there are no obligations to pay social security contributions, holiday pay or sick pay - unlike with an employment contract. Moreover, as a client, this construction gives you access to specialist knowledge, as you can use the skills and experience of independent professionals for a variety of projects. A freelancer contract lacks the relationship of authority; the contractor performs the work independently, without direct direction from the client. There is also no obligation of personal labour: the contractor may, unless otherwise agreed, decide who performs the assignment. In addition, there is no payment of wages as in the case of employment, but an agreed fee for the services provided. By making this distinction clear and recording it, you avoid misunderstandings about the nature of the cooperation and reduce the chances of discussions with authorities such as the tax authorities. It is therefore important to be precise in this respect. For more tips on how to improve collaboration with interim workers, make sure to check out our article dedicated to it!
 

What you need to write a freelancer contract

When drawing up the agreement, there are some crucial aspects to consider:

• Accurately describe what work the contractor will perform to avoid misunderstandings.
• Record the period for which the agreement applies and the conditions under which both parties can terminate the agreement.
• Agree on the amount of the fee, invoicing and payment terms.
• Determine who is liable for any damages and whether insurance should be taken out.
• Emphasise that the contractor works independently and is free to carry out the work, to avoid false self-employment.
• Think of adding an NDA if the freelancer will work with sensitive information during the project.

These are elements that you certainly already thought of while writing the project brief, but make sure to state everything clearly - it helps building strong foundations on which to establish your collaboration.

How to create a freelancing contract?

Creating a freelance contract doesn't have to complicated: it's about setting the stage for a successful collaboration. Here is how to do it step by step:

1. Start with the basics
   Include the names and contact details of both parties: the freelancer and the client. This makes it clear who’s involved.
2. Define the scope of work
   Be specific about what the freelancer will deliver. What tasks are expected? What are the deadlines? Clarity here prevents misunderstandings later.
3. Agree on payment terms
   Outline the fee, payment schedule, and method. Will it be hourly, per project, or retainer-based? Include details about invoicing and any late payment policies.
4. Set the timeline
   Mention start and end dates, as well as key milestones if applicable. This helps manage expectations and keeps the project on track.
5. Include termination clauses
   Life happens. Make sure the contract explains how either party can end the agreement, and what notice period is required.
6. Add confidentiality and ownership terms
   Clarify who owns the work once it’s completed, and whether any information needs to be kept confidential.
7. Sign and store the contract
   Once both parties agree, sign the contract digitally or on paper. Keep a copy for reference.

Risks and how to avoid them

A freelancer contract offers clients a lot of flexibility, but it also carries risks. Especially in legal and tax terms, complications can arise if agreements are not clear or practice deviates from the contract. It is therefore important to invest not only in clear agreements, but also in proper supervision of their implementation.

•  If a contractor actually works under authority, with fixed working hours and instructions, the tax authorities may judge that an employment relationship exists. This can lead to additional taxes and fines. Therefore, ensure that the contractor is demonstrably working independently.
• Without clear agreements, the client can be held liable for damage or mistakes made by the contractor. Therefore, establish who is responsible for what and consider making liability insurance compulsory.
• For creative or technical assignments, it is essential to determine in advance who owns the rights to the completed work. This prevents discussions afterwards.

To limit these risks, regularly review your closes and legal entities, this can be done internally or through a specialised third party such as Headfirst.

Practical tips for clients

A freelance agreement offers many opportunities, but its success depends on careful execution. As a client, you can reduce risks, ease cooperation and comply with laws and regulations with a few practical measures. Here are ways to get a grip on your process and avoid legal issues for your company:

• Use model agreements: The Tax Administration offers approved model agreements that can serve as a basis. Adapt these to the specific situation, but make sure the core provisions remain intact.
• Ensure consistency between agreement and practice: The actual performance of the work should match the arrangements in the agreement to avoid discussions about the nature of the employment relationship.
• Take into account the DBA Act: The Deregulation of Assessment of Employment Relationships Act imposes requirements on the relationship between client and contractor. Keep abreast of current regulations to stay compliant.
• Consider legal support: It may be wise to seek legal advice when drafting or assessing a commission contract, especially for complex or long-term assignments.
   

By applying these tips, as a client you increase the chances of a successful and legally safe collaboration with independent professionals. It will also give you the peace of mind and certainty that everything is well organised, allowing you to focus on the content and results of the assignment.

Go for a successful collaboration

A freelancer contract is a valuable instrument for clients who want to employ independent professionals flexibly and cost-efficiently. By paying careful attention to the content and execution of the agreement, risks can be limited and a successful collaboration can be realised. Make sure not to miss any of our articles on the subject by subscribing to our newsletter down bellow!