Legal Considerations for Hiring a Freelancer


A freelancer is a person who basically owns their very own small business and offers its services to companies or institutions. In comparison to a normal employee, a freelancer isn´t hired for a fixed amount of time, instead, they are hired for the duration of a project. As the freelancer acts as its administrator, they decide their base salary to charge companies and aren’t eligible for the series of benefits such as health, insurances, etc. that enterprises normally give their employees. 

One of the main aspects to observe while working with a freelancer is that the contract by which they are hired must clearly stipulate the responsibilities and the type of work they are going to execute. This is because everything else that is not included in the contract cannot be demanded or must be negotiated independently. In the same order of ideas, as freelancers are basically known as independent contractors the contract must clearly state the duration of the project or the time and type of assistance the freelancer is going to collaborate with. This is crucial when considering legal aspects of hiring these types of workers because the company needs to differentiate a normal employee from the freelancers. This is because the employees receive more benefits included in their wage shown by the type of contract, therefore, not being able to identify a worker as a freelance might lead up to an increase in unnecessary costs of the firm. 

In the same order of ideas, the firm needs to comprehend the context it is facing and decide whether it is necessary or not to hire a freelancer. Commonly, enterprises decide to hire freelancers in times of crisis regarding project deadlines or staff shortage, however, sometimes its more effective hiring a temporary worker. This is because the firm has reduced authority over freelancers and the type of work they are going to execute. As the freelancer acts as an independent contractor, he is in the right of using his pieces of work outside the company, which signifies a risk that valuable information may be filtered to competitor companies. Given this situation, its necessary that the contract addresses the legal considerations of the intellectual property and state whether the work can be used or not outside the project. Furthermore, the contract must include the recognitions that are going to be given to the freelancer such as crediting his work. 

Written by: Sergio Cano Parada Digital Marketing Analyst and LinkedIn Manager