UK contractors usually have many hoops to jump through, but even a basic contract should give them various protections. In this post, we’ll highlight the rights that a robust agreement offers to contractors and any extra legal protections you should know about.
Why You Need a Contract
You can’t leave anything to a verbal agreement — if it’s not in writing, your client may simply not follow through on the promises that they made. That’s why you must get a custom contract from a reputable platform.
The right website lets you create and download a UK independent contractor agreement that fits the services you offer and already comes with most basic provisions. Without this, you’ll have an uphill battle fighting for your freelancer rights.
Key Independent Contractor Protections
Even if you only have a generic contract, you’re still afforded a number of protections under UK legislation. These are valuable lifelines if your client tries to take advantage of your status as an independent worker.
The main contractor protections that British law helps guarantee include:
- Contractual rights: As outlined above, you can set up contracts with clients that protect you under general contract law, letting you take action if there’s a breach.
- Health and safety: 1974’s Health and Safety at Work Act applies to freelancers, so you have the right to work in a safe environment with appropriate PPE.
- Data protection: Clients still need to protect their information under GDPR; they have to keep it safe and update you on how they plan to store it long-term.
- Anti-discrimination: The Equality Act 2010 protects you from discrimination based on your sex, race, age, gender, religion, or orientation, even if you aren’t an employee.
- Late payments: You have the right to charge up to 8% interest on overdue payments — but make sure you set out your intention to do so in your contract.
You can also add extra protections to your contract, such as dispute resolution mechanisms, or clarity surrounding the services you provide to avoid scope creep.
The Freedom of a Contractor
Though contractors don’t enjoy the benefits of a full-time employee, they have more freedom — in many ways, this is their biggest right. As a contractor, you’re free to:
- Turn down clients you’d rather not work with
- Set your own working hours
- Work with several clients at once
- Substitute yourself with another professional
- Work for as many days as you want
- Negotiate specific work terms
- Set where your duties start and end
You can also usually set or negotiate a rate, as you won’t have a fixed salary. This could extend to charging different rates to different clients, such as if you’d like to give discounted prices for your services to small businesses.
However, some of these brush up against the realities of certain sectors; for example, you can’t always access construction sites at any time of day. That said, a client should never try to inhibit any of these freedoms.
A Contractor’s Main Responsibilities
However, these rights and protections come with a few caveats. For example, you usually have to supply your own equipment, including the software you need to complete the tasks your client sets. Other responsibilities include:
- Registering with HMRC or Companies House as a sole trader/company
- Absorbing miscellaneous costs without the possibility of reimbursement
- Managing taxes and national insurance, you won’t have a PAYE system
- Adhering to agreed-upon deadlines and standards like any other worker
- Keeping any and all sensitive client information confidential under GDPR
- Carrying the right insurance, such as professional indemnity insurance
- Maintaining accurate records, including years of invoices and contracts
You also bear all the risk for your enterprise — this is why you need insurance, in case a simple mistake costs clients money.
Watch Out For Disguised Employment
Disguised employment is when a company takes on a freelancer and effectively treats them as if they’re a full-time employee, but without the associated benefits. They might place strict limits on your work, including when you can perform it, or stop you from seeking other clients.
Here are the main red flags for disguised employment:
- You need permission for time off
- You’re managed like a staff member
- You have to follow the dress code
- You have an open-ended rolling contract
- You can’t send a substitute worker
If you’re in an arrangement like this, you could end up in trouble with HMRC.
Always bring your own contract to the table, preferably from a reputable document template site. And if the other party tries to negotiate away key freelancer rights, don’t be afraid to walk away; chances are, they’re looking for a cheap employee.
Final Thoughts
Only the correct documentation helps you effectively advocate for your rights as a contractor. To help with this, you’ll need a comprehensive freelancer template that goes beyond the basics and includes everything you need for a fair, comfortable work arrangement.