Contract Template for Hiring Freelance Workers

Introduction

With the advent of the online marketplace business model in the past few years, there has been an increasing demand for hiring of workforce under the freelancer model. This system allows companies to scale up and down their workforce as per market demands, allowing for high flexibility in their hiring.

The Freelancer model of engaging the workforce limits compliance liabilities for Companies, however, expect to pay a premium of 15-20% while dealing with high variability of workforce availability at any instance.

We at Knighthood have engaged with multiple organisations, providing staffing solutions across multiple models. In this post, we are sharing a standard contract template we use when engaging the services of any freelancer for our or customers’ requirements

Key Elements of Contract Agreement

• Hiring Duration of the Employee
• Employee Details: Name, Contact and other personnel details that is needed
• Role and responsibilities to be handled by the employee. Typically you hire for a project, so you need to explain within the confines of the project
• Compensation Details: Details of the wages paid, payment frequency and billing process that the employee needs to adopt during the contract period
• Assets: In case any company assets such as Mobile or laptop are provided, you detail them to ensure that in case of any damages, the expenses can be calculated accordingly. You can even choose that the employee is responsible for using his/her assets for the project and the Company will not provide them if needed. However, it is recommended to issue Company assets if the employee will be working on critical projects to ensure data security
• Expenses: Details of the expenses reimbursement process when the employee engages in his role
• Non-Disclosure Agreement: Both the contractor and the service provider agree to keep company information confidential
• Intellectual property rights: Ownership and rights of the product and service rendered by the employee have to be specified. It needs to clarify who owns what to avoid future conflicts
• Termination: Explain the details of when and how the contract can be terminated in case of any changes in the project or you don’;‘t find the employee meeting your needs as expected
• Right to the injunction: This means that both the parties (contract employee and organisation) acknowledge giving a special value to the services rendered, which cannot be compensated by damages in any action of law. It can’t also be breached by the employee
• Benefits details: Any specific benefits that you might wish to provide to the employee
• Conflict Resolution: The employee must enter the agreement in free will and it should not conflict with any other agreement between the employee and any other third party. You can also state if the employee is free to engage with other companies or needs to work on an exclusive basis when the contract is effective

Freelancer Agreement Template

This Agreement is made and entered into as of [Date] by and between:

[Company Name], a [Company Type] with its registered office at [Company Address] (from now on referred to as “Client”), and

[Freelancer Name], residing at [Freelancer Address] (from now on referred to as “Freelancer”).

WHEREAS, Client desires to engage Freelancer to perform certain services, and Freelancer desires to accept such engagement;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. Engagement

1.1 Client hereby engages Freelancer to perform the following services: [Detailed description of the project/services to be provided by Freelancer].

1.2 Freelancer agrees to perform the Services professionally and competently, by the highest industry standards and Client’s specifications.

2. Term and Termination

2.1 This Agreement shall commence on [Start Date] and shall continue for a period of [Duration] (the “Term”).

2.2 This Agreement may be terminated by either party upon [Number] days’ prior written notice to the other party.

2.3 This Agreement may be terminated immediately by either party upon the occurrence of any of the following events:

(a) Material breach of this Agreement by the other party; (b) Insolvency or bankruptcy of the other party; or (c) Force Majeure event that prevents the performance of the Services for a period exceeding [Number] days.

3. Compensation

3.1 Client shall pay Freelancer a fee of [Amount] for the Services, payable [Payment Frequency] as per the agreed-upon billing process.

4. Expenses

4.1 Client shall reimburse Freelancer for reasonable and documented expenses incurred by Freelancer in connection with the performance of the Services, subject to Client’s prior approval.

5. Assets

5.1 If Client provides Freelancer with any equipment or assets (e.g., laptop, mobile phone) for the performance of the Services, Freelancer shall be responsible for their safekeeping and return upon completion of the Agreement.

6. Confidentiality

6.1 Freelancer agrees to hold in strict confidence all confidential information of Client, including but not limited to trade secrets, customer lists, and business plans.

7. Intellectual Property Rights

7.1 All intellectual property rights in and to the work product created by Freelancer under this Agreement shall be owned by [Specify ownership: Client/Freelancer/Jointly].

8. Right to Injunction

8.1 Both parties acknowledge that the Services provided by Freelancer are of a unique and special nature, the loss of which cannot be adequately compensated by damages in any action of law. Therefore, each party agrees that the other party shall be entitled to injunctive relief to prevent or restrain any breach of this Agreement.

9. Benefits

9.1 [Specify any benefits provided to Freelancer, if applicable].

10. Conflict Resolution

10.1 Any dispute arising out of or in connection with this Agreement shall be settled amicably through negotiations. If the dispute cannot be resolved amicably, it shall be referred to [Specify dispute resolution mechanism: Arbitration/Court].

11. Independent Contractor

11.1 Freelancer is an independent contractor and not an employee of the Client. Freelancer is responsible for all taxes and social security contributions arising from the performance of the Services.

12. Entire Agreement

12.1 This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

13. Governing Law

13.1 This Agreement shall be governed by and construed by the laws of India.

IN WITNESS of which, the parties have executed this Agreement as of the date first written above.

[Client Name]

By: [Authorised Representative Name]

Title: [Authorised Representative Title]

[Freelancer Name]

Conclusion

Please Note that this is a sample agreement and may not be suitable for all situations. It is recommended to consult professionals to ensure the agreement complies with all applicable Indian laws and meets the specific needs of your engagement with the freelancer.

In case you are looking to engage the services of any Staffing agencies to assist you in your freelancer hiring, feel free to connect with us to understand how we can be of assistance

We at Knighthood have been working with over 200+ organisations for over 10 years. We focus on ensuring high service levels at affordable prices. You can read more about why our customers choose to work with us.