Contracts for Suppliers and Freelancers

Contractual Work vs Employment Contract

Contractual workers, self-employed and freelancers get work without an employment contract. They do need something on paper to confirm the work they’ve been commissioned to do. So when a business engages the services of a freelancer or self-employed person, both enter into a business commitment. The arrangement is not an employment contract, however it should be formalised with a contractual agreement.

Self-Employed Workers

Self-employed individuals sometimes operate as a limited company. They may have one or several clients. Often outsourced workers are treated by the client as employed staff, in other words, they share the same benefits, including bonuses, as employed staff. But they must always formalise the business commitment or relationship with a legal document. Ideally, both the company and the worker should have terms and conditions, including non-disclosure agreement with the client.

Post-Pandemic Trend

Outsourcing has been around since the 1950s and it became extremely popular in the 21st century. After the Covid-19 pandemic, outsourcing has become a booming industry. Businesses outsource both in the UK and abroad. Call centers, typists, accountants, even lawyers are outsourced in order to cut down costs. Some outsourced staff have an employment contract with an outsourcing company. This means that the worker is employed or outsourced by an outsourcing company, but then the client has a commitment with the company.


When a business engages the services of an outsourced worker or self-employed contractor, the business is committed to paying an invoice which may include expenses and VAT. Any tax and national insurance contributions are the responsibility of the worker, not the client. Any vat payments are made to the outsourced worker but the worker is the one who submits vat payments to HMRC.

If you are self-employed or are a company that engages the services of freelancers, you need to draft a contract. The contract should include confidentiality and non-disclosure clauses. It should include other clauses that cover areas of the business in order to protect the relationship with the worker and protect the business. SG

Make An Enquiry

Call us now on 020 7113 4003 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.

Free Enquiry

Back to all news

Share Article With:

Make An Enquiry

    Global Excellance Awards

    Client Reviews

    DG Law were fantastic throughout our purchase process. We had a short, fixed, timeline to

    Venetia Lawson-Cruttenden [solicitor] is fantastic!  She is always so thorough and efficient and gives you the

    DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome

    We were very pleased with the way that DG Law helped us on our transaction

    Thanks for all the help from DG Law in pulling together our somewhat complicated loan. 

    DG Law resolved a difficult lease renewal for us and their services were excellent –

    I needed understanding and experienced legal advice. DG Law provided an excellent service at a

    My experience was second to none – the service was professional and personal. DG Law

    DG Law always step up to the plate on our transactions and handle the various

    DG Law was recommended to me and my partner and I received excellent advice –

    Having worked with DG Law a number/couple of times now, I have been really impressed

    DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting

    DG Law organised and ran a very useful session to help to make our team’s

    DG Law came recommended to me and whilst setting up a new business it was

    We were recommended three lawyers to handle the sale of our seven year old successful

    Why Choose Us?

    We live by our core values of transparency, flexibility and being honourable – every day

    We put ourselves in your shoes so we understand your problems from the inside out

    We deliver our advice in a way that is easy to understand