What to include in a freelance contract: a checklist for companies

A clear contract protects both sides and prevents most disputes before they start. It also sets expectations: what will be delivered, when, for how much and what happens if things change. Freelancers generally appreciate a clear contract, because it protects them too.

This checklist covers the essentials. It is not legal advice: have a lawyer review your template, especially when working across countries with different laws.

The essentials

• Parties: the legal names and addresses of your company and the freelancer (or the freelancer's company).
• Scope of work: what will be delivered, or the role and responsibilities for ongoing work. For projects, attach a statement of work.
• Term: start date, expected duration and whether it renews automatically.
• Rate and payment: hourly, monthly or fixed price; currency; invoicing schedule; payment terms such as "within 15 days of invoice".
• Expenses: what, if anything, is reimbursed, and whether approval is needed first.

Protect your business

Intellectual property

All work product created for the project should be assigned to your company, usually upon payment. Be explicit that this includes code, designs, documents, content, data models and anything else created for you.

Pre-existing materials

Freelancers often use their own tools, libraries or templates. The contract should say they keep ownership of those, and that you receive a license to use them as part of the work.

Confidentiality

Define what counts as confidential (business plans, customer data, code, financials) and how long the obligation lasts, often several years after the engagement ends.

Data protection

If the freelancer will handle personal data, specify how it may be processed, stored and deleted, in line with the data protection laws that apply to you.

Security

Set expectations for device security, password managers, two-factor authentication, access rules and what happens to company data at the end. See protecting your IP and data.

Non-solicitation

If needed, include reasonable limits on hiring each other's employees or approaching your clients directly. Keep them proportionate; overly broad restrictions may not be enforceable and put good freelancers off.

Working arrangements

• Availability and overlap hours
• Communication expectations and tools
• Reporting: how progress is shared
• Acceptance: how deliverables are reviewed, approved or sent back for changes
• Change requests: how scope changes are agreed and priced

Ending the engagement

• Notice period for both sides, for example two to four weeks
• Handover: documentation, code, files and credentials
• Return or deletion of company data, confirmed in writing
• Final payment for work completed up to the end date

Independent contractor status

Make it clear that the freelancer is an independent contractor, responsible for their own taxes, insurance and equipment. Rules on contractor classification vary by country and can depend on how the work is actually done, not just what the contract says. Check with your advisor, especially for long, full-time engagements.

Liability and disputes

• Limitation of liability: a reasonable cap that both sides can accept
• Governing law and jurisdiction: which country's laws apply
• Dispute resolution: for example, negotiation first, then mediation or a specific court

Keep it readable

A five-page contract that both sides understand is better than a forty-page one nobody reads. A good structure:

1. A reusable master agreement with the legal terms
2. A short statement of work for each project or phase, with scope, timeline and price

This makes it easy to start new work with the same freelancer without renegotiating everything.

A pre-signing checklist

• Scope and deliverables are clear
• Rate, currency and payment terms are agreed
• IP assignment and confidentiality are included
• Data protection and security are covered
• Notice period and handover are defined
• Both sides have read and understood it

Agreed up front

When you hire through HireCurated, scope, rate and availability are agreed before work starts. Start here.