Self Employed – Legal Landmines HR Must Avoid
The freelance market is growing at a rapid rate. While self-employment offers the advantage of high-quality skills and a fresh perspective on your business, there are legal issues to consider. If you are considering hiring freelancers for the first time, you should be aware of how employment law affects these types of arrangements.
The hiring of freelancers does not normally imply long-term obligations for both parties. Human resource managers hire a freelancer for a single, short-term project; You can use the same person repeatedly if you are satisfied with their work, but it is better to write a new contract each time.
Contract configuration
As defined by labor law, an independent worker is a type of worker who provides services on their own account. First, you must determine employee status by confirming that the self-employed person operates under the self-employment rules outlined in labor law. There are a few main things to know about freelancers:
Anti-discrimination laws apply to all employees, including the self-employed.
The freelancer has the ability to control how and when they work
You are under no obligation to offer work to the freelancer beyond the terms of the contract.
They are responsible for paying their own taxes and national insurance contributions.
You must write a contract before the freelancer starts working. Keep in mind that freelancers may not have the same loyalty as a full-time employee, so consider including a confidentiality clause in the signed agreement. Be sure to establish the required terms of work on the project, including start and finish dates, progress reports, and ownership of the final product.
Decide copyright ownership
Your biggest concern is understanding who owns the copyright in an independent project. With regular employees, all your work belongs to the company. However, with freelancers, the copyright is granted to them. Companies end up spending a lot of money to persuade a court that they own what you thought you already paid for. Be sure to negotiate the specific terms of copyright ownership in the legal agreement with the freelancer.
Given the current economic climate, your company may need to consider sharing the workload with qualified freelancers in the future. Human resource managers can take the necessary steps to protect the company from any legal ramifications with the use of independent contractors. By establishing a proper legal agreement early on, you can make the relationship run smoothly.