Do I Need A Freelancer Agreement?

As a freelancer, you’re essentially running your own small enterprise. You are everyone — the service provider, the accountant, the sales representative, the marketer, and the in-house legal team.

Why Did You Get Into Freelancing?

Was it the allure of flexibility? The promise of a better work-life balance? Or perhaps the opportunity to dedicate more time to your favourite creative or other pursuits?

Whatever your reasons, they likely didn’t include a desire to navigate the intricacies of business legals (unless you’re a freelance lawyer!).

But that doesn’t mean that the legal aspects are any less critical. In fact, they’re often more important than you might have initially thought — not just for safeguarding yourself, but also for establishing trust and setting clear expectations with your clients.

The primary legal document you need in place with your clients is a Freelancer Agreement. This may also be referred to as a Service Agreement, Business T&Cs, or another industry-specific title. Essentially, it’s a contract between you, as the freelancer, and your clients.

What’s In A Freelancer Agreement?

A Freelancer Agreement is a legal contract that outlines the terms and conditions under which your clients agree to utilise your freelance services.

The specifics of what’s included in a Freelancer Agreement will depend on the services you offer.

Typically, these agreements address both commercial and legal considerations. Commercial aspects might include payment terms, deadlines, and deliverables, while legal considerations could cover intellectual property rights, confidentiality, and limitations of liability.

Common clauses might include:

• Scope of services: What services will the freelancer provide? What is specifically included and what is not?
• Liability protections: Who bears responsibility if something doesn’t go as planned?
• Intellectual property ownership: Who will own the intellectual property in the final output? And who owns the IP created during the process?
• Payment and late payment: What are the payment terms? How is payment to be made? And what are the consequences of late or non-payment?
• Confidentiality: Are there any details that must remain confidential between the parties?
• Term and termination: What is the duration of the contract? How can it be terminated?

Clarifying these elements in writing from the outset can prevent significant misunderstandings and disputes down the line.

Freelancer Agreement Example

Let’s consider Cindy, a freelance graphic designer in New Zealand. Cindy has a client, Harry, who provides her with consistent work but has high expectations. On one occasion, Harry hired Cindy to create a new brochure for his business. The brief specified one brochure design, and Cindy delivered the design on time, along with her invoice for payment. Harry, however, contended that the brief included two designs and refused to pay Cindy for her work.

Fortunately, Cindy ensures that her clients sign her Freelancer Agreement before commencing any job. This agreement includes a front page detailing the timing, cost, and deliverables, with standard terms and conditions attached thereafter.

When Cindy discussed the issue with Harry over the phone, she pointed out that the contract he had signed stipulated only one design in the scope, and the payment was for that single design. Upon reviewing the contract, Harry acknowledged the agreement and proceeded to pay for the design, agreeing to a new contract for the second design.

Without such formal, written agreements, freelancers risk misunderstandings with clients, which can often result in the freelancer being disadvantaged. A legal contract agreed upon at the start of a project provides freelancers with the confidence to assert their rights without jeopardising client relationships.

Need Help With A Freelancer Agreement?

Having a properly drafted Freelancer Agreement is crucial — it sets out your expectations with your clients, secures your payments, and protects your intellectual property among other legal risks. However, without legal expertise, it can be challenging to ensure your agreement is comprehensive.

Enlisting the help of a lawyer to draft a legally robust Freelancer Agreement can provide you with the clarity you need for your engagements. It also alleviates the stress associated with the legal aspects of your business, allowing you to concentrate on your passion.

At Sprintlaw, we have a team of experienced lawyers who can assist you with drafting a Freelancer Agreement tailored to New Zealand law. Contact one of our consultants on 0800 002 184 for a no-obligation chat about how we can help you with a Freelancer Agreement and any other legal issues your business may encounter.

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