Freelancer Contract Template UK: Complete Guide

Essential Clauses for Freelancer Contracts

A freelancer contract must establish the nature of the relationship as self-employed, define the scope of work clearly, and set out payment terms. Unlike employment contracts, freelancer agreements should emphasise the right to substitute, lack of mutuality of obligation, and control over how work is delivered.

• Scope of work: clearly define deliverables, timelines, and acceptance criteria
• Payment terms: specify rates (hourly, daily, or project-based), invoicing schedule, and payment deadline
• Right of substitution: the freelancer should be able to send a qualified substitute
• No mutuality of obligation: neither party is obliged to offer or accept future work

IP Rights and Confidentiality

Unlike employees, freelancers generally retain copyright in their work unless the contract specifies otherwise. If you are hiring a freelancer and want to own the output, you must include an explicit IP assignment clause. This is one of the most commonly overlooked provisions.

• Include an IP assignment clause if the client needs to own the work product
• Alternatively, grant a licence specifying how the client can use the deliverables
• Confidentiality clauses should cover the duration of the engagement and a reasonable period after
• Freelancers may want to retain the right to use work in their portfolio — negotiate this upfront

Liability and Insurance

Freelancer contracts should address liability limitations and insurance requirements. Professional indemnity insurance is standard for many freelance professions, and clients increasingly require proof of cover before engaging contractors.

• Cap liability to a reasonable amount, typically the total contract value or a multiple of it
• Specify whether the freelancer must hold professional indemnity insurance and the minimum cover required
• Include an indemnity clause for third-party IP infringement claims
• Public liability insurance may be required if the freelancer works on client premises

Key Takeaways

• Freelancer contracts must establish self-employed status through substitution rights, no mutuality of obligation, and control over working methods.
• IP rights default to the freelancer unless the contract explicitly assigns them to the client.
• Liability caps and insurance requirements protect both parties and should always be included.