If you outsource to freelancers or self-employed contractors, they are responsible for paying their own national insurance contributions and taxes. They can offset expenses against their earnings and invoice their clients for a refund. They are free agents but bound by contract. In other words, although they’re free to choose whom to work with and when, they have to follow rules. Those rules are in the terms of service between the contractor and client.
Terms of service between a client and service provider protects both parties. Clients and their freelaners will often run into difficulties. One area that creates problems is invoicing and payent. A way to deal with this problematic are is the introduction of fee clauses. The freelancer’s fees should be stipulated in the terms of service. Payment terms should be made clear, as well as any fees for late payment or non-payment. Another area crucial for the protection of a business is confidentiality, security and cybersecurity clauses. Both parties need to understand the importance of confidentiality and non-disclosure of any sensitive information.
If a freelancer works from home, the client must ascertain that there’s adequate security in the freelancer’s devices. There is the need to ensure no probability for someone to hack into the systems via the freelancer’s devices. Clients would probably do well to invest in cybersecurity training and enquire of the type of security and protection the freelancer employs. A business can be liable and many have lost millions in litigation cases and fees because of databreaches. The weakest links, when it comes to cybersecurity breaches, are often because of management’s carelessness. But freelancers can sometimes be careless.
If you’re a freelancer or a business outsourcing to freelancers, please ensure that you have in place terms of service to protect your business. Please get in touch and we’ll advise you about what should be included in the terms of service. SG
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