HR & IT Recruitment Services Remote recruitment & HR services Recruitment subscription About Us Contacts ALL JOBS IT JOBS CV EXAMPLES Our blog 2 Case Studies

How to secure your contracts when hiring freelancers?


by Wiktoria Stretskite

Hiring remote freelancers has become very popular these days. This practice is new but gaining rapid distribution. To protect your company from various unforeseen situations, it is necessary to conclude a contract (agreement) with such an employee, which will specify all the conditions for cooperation. This legal agreement will be a legal document if it comes to litigation. 

Definition of a freelance worker

Freelancing is a remote form of income for an employee but without official employment in your organization's staff. A freelancer can be located anywhere geographically (another city or country) but at the same time perform the assigned tasks. It is not tied to the company's working hours and rules – a freelancer builds a workspace at their discretion. Still, the most important thing is to complete the tasks assigned to him within a certain period (and preferably only based on a contract).

Consider the critical points of such cooperation

You should follow the recommendations below to protect your organization from harmful (and unprofitable) consequences.

Overview of an agreement (contract)

One of the most critical points in remote hiring a freelancer is the legal registration of cooperation. A properly drawn-up contract signed by both parties can protect your company from various problems. The agreement must specify the following:

  • the subject of the contract (and the more detailed, the better);
  • amount of payment in figures and words;
  • terms of performance of work (or the schedule);
  • details of the parties.

Refrain from agreeing to a verbal agreement, fraught with many pitfalls.

Money relations

Financial relations must be clear to both parties. This important point should be spelled out. For example, the advance payment amount (if any) is indicated. Or they are allocating funds to a freelancer to purchase the necessary software or technical equipment. It should also show the payment terms at the end of the work.

Never give a freelancer money in advance by verbal agreement. Subsequently, the amount transferred to him will take much work to prove. If such a question arises suddenly, the transfer of funds must be documented.

ID confirmation

It will be much more reliable if you, as an employer, have complete information about your employee. In this case, it is better to treat hiring an employee as if you were taking him to the company's staff. Before the start of cooperation, it is recommended that the freelancer submit the following documents (in person or in a scanned form):

  • identification;
  • location;
  • document on education (if necessary).

You should also learn more about previous work experience and ask the new employee for references for the last remote staff jobs.

Terms of cooperation

In the course of work, unforeseen changes (project adjustments) may occur. If this concerns a freelancer, they must be informed in time (in an official letter). Otherwise, it is fraught with losses and a complex conflict between the parties.

A freelancer should have a direct regulator (curator) from the company who will know the task's progress if necessary. It is especially true for long-term contracts.

Provide for all the above recommendations, and then the parties' disagreements, if any, will be minimized.