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The importance of contracts as an essential part of every freelancer�s
toolkit should not be underestimated. Not only do they outline the
wants, needs and expectations of the parties, but they also provide a
legal framework within which these will be achieved, and a back up
should legal intervention be required. Contracts provide a formal
definition of the business relationship between the freelancer and
agency or direct client.
For freelance contractors who might be viewed by HM Revenue &
Customs as �disguised employees� within the IR35 legislation, having
sound contracts in place is all the more important.
First and foremost, it is essential to have a contract for services
with your business, not a contract of service or employment contract
with you personally. This contract should accurately reflect the
relationship between parties, and should include the following elements:
- A substitution clause allowing the work to be performed by
another person provided by your freelance business; there will usually
be terms relating to right of veto, suitable qualifications and so
forth.
- A clause specifying that there is no "mutuality of obligation" between the parties; in other words, there is no "obligation, on the one hand, to work and, on the other, to remunerate."
- A clause stating that you will not be subject to supervision, direction or control
as to the manner in which you render the agreed services; as a
professional, you will use your own initiative as to the manner in
which the services are delivered.
From the outset, one of the key benefits offered to PCG
members has been a selection of draft contracts vetted by experts in
commercial, employment and tax law. The most recent set of updates was
published in December 2005, and this now includes a standard set of
terms and conditions to complement the direct contract template. This
document is much shorter than the direct contract template, and is an
ideal accompaniment to quotations for relatively small pieces of work.
| Name | Description | File Type | File size | Date Added | | A05-01 Service provider-agency agreement | Draft contract between contractor business and agency, with explanatory notes and sample opt-out letter |
| 100KB | 07/08/2007 | | A05-02 Agency-client agreement | Draft contract between agency and client, with explanatory notes | | 88KB | 07/08/2007 | | A05-03 Schedule to agreements between agency-client and supplier-agency | Draft schedule to both the above contracts | | 73KB | 07/08/2007 | | A05-04 PCG agency contract terms - edition 8 - general notes | General notes about agency contract terms | | 48KB | 07/08/2007 | | A05-10 Direct service provider-client agreement | Draft contract between contractor business and client, with explanatory notes | |
105KB
 | 19/07/2007 | | A05-11 Terms and conditions | Draft standard terms and conditions, suitable for appending to quotations to direct clients for small pieces of work | |
84KB
| 19/07/2007 | | A05-20 Mutual secrecy agreement | Draft mutual confidentiality or non-disclosure agreement |
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72KB
| 19/07/2007 | |
A06-05 PCG-REC service provider-agency agreement |
Draft service provider-agency agreement for use by REC member agencies.
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232KB
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22/06/2006 | |
A06-05 PCG-REC service provider-agency agreement
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Draft service provider-agency agreement for use by REC member agencies.
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228KB
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22/06/2006 |
PCG also provides a service through which members can have other contracts reviewed by experts, you can access this information here.
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