Streamline your tax compliance with our expert-assisted GSTR 9 & 9C services @ ₹14,999/-

Tax efficiency, interest avoidance, and financial control with advance payment @ 4999/-
Freelancer Agreement

A Quick Overview for Drafting a Freelancer Agreement

In this article, you will understand the types of agreements a freelancer can draft. Primarily, freelancers can use three types of contracts, and they vary in terms of restrictive licenses, withdrawal clauses, etc. Contractors will have multiple reasons to sign a 'work-for-hire' agreement, whereas a much larger team may be better off with an 'agency' clause. Find out what they are here!


A freelance agreement is a written document that binds the arrangement between the employer and the freelancer. Work that defines the parameters of the work that they will perform. It specifies the nature of the work, the compensation, the working hours, and the responsibilities.

There are three types of agreements:

  • Rights-Managed Contracts
  • The Buyout
  • Work for Hire

Understanding your options is an essential part of developing a freelancer hiring agreement career because you should go into it fully informed of your options.

Rights-Managed Contracts: There are many different types of freelancer contracts. A Rights Managed contract is a contract that gives the company the right to use and sell the freelancer’s work in any way they choose while paying the freelancer a set fee. The company owns all rights, but the freelancer still has copyright protection.

The Buyout: A buyout is when the freelancer is paid a lump sum for all of the work that they do for the client. This type of contract is often favoured by the company as it gets a guarantee that there will be no cost of calls or other expenses.

Work For Hire: Work for hire means that a company hires you to work on a specific project. They want the work done and they want it done to their specifications. This is different from contracting as, in contract work, the freelancer has some input into how the project turns out and what it will be used for.

Fee Structures

Freelancers can be flexible in their fee structures. Most freelancers will create a set fee to charge the client they are working for. However, most people prefer to work on an hourly basis so that they know what they will owe each day. The freelancer will then charge the client per hour of work done. Another type of fee structure is getting paid based on a daily or weekly total (like a project completion fee). Finally, some people make a set number of hours and get paid for them at the end of the week for example.

Terminating the Agreement and Exit Costs

The traditional framework for how to terminate a freelancer contract came from placing freelancers because their skills and expertise are in-demand for short periods of time. It follows that an outsourcing company needs them to complete a specific project, but then they’re set free after this is done.

But things get more complicated when assigning work to freelance contractors because the company issues orders over a period of time and assigns tasks out at the range. When terminating such an agreement, there’s no need for penalties as it can be done regularly as long as there’s clarity about this in the contract.

Draft Freelancer Agreement

Drafting an Agreement

Freelancers need to have a contract drawn up with their clients before working on the job. The contract should include an agreement on how much will be paid, deadlines or expected completion dates, what the scope of work is, what programs and tools will be used for the project, and how alterations can be suggested to the project (prior to being made), what forms of communication are acceptable during the project, how many revisions are included in the initial price, who owns the copyright of the project’s design or code, how long does the freelancer retain exclusive rights to that design/code.

Tips for the Transition Period between Employer and Employees

There can be a 7-day cooling-off period during which the employer may terminate the relationship without giving a reason. There’s also a probationary period of up to 3 months or 4 weeks, whichever is longer. As such, it provides security and protection for employees who are just getting started on their freelance careers.

To know more about the Freelancer Template Free


Everything has a conclusion, and these legal agreements are no different. Headings are great because they make it easier to find information quickly. And under the heading Conclusion, familiarize yourself with how this question might be answered and ensure you’ve created a solid set of points that touch on all of the aspects so there is no confusion or the wrong impression for possible clients.

Also Read:

Back to top button


Remove Adblocker Extension