Legal Protections for Freelancers: What to Put in Your Contract
A solid freelance contract protects your time, your money, and your business.
A virtual handshake (i.e. a Slack message) might feel like enough to start working on a new client project when the client seems trustworthy — but it's not. Even relationships with well-meaning clients can go south for unforeseen reasons. Not to mention, there are a lot of unscrupulous people out there who take advantage of freelancers.
A solid freelance contract protects your time, your money, and your business.
Why do freelancers need contracts?
Think of your contract as your insurance policy for the client relationship. It sets expectations for both you and your client.
Before I pivoted to freelancing, I was the director of customer success at a tech company. I was tasked with writing contracts for some projects. I quickly realized that the more I included, the more I could protect the company and team. Otherwise, we found ourselves in some tense/sticky situations that ended up costing time and money.
As a freelance fintech writer, my contract has protected me many times. Without a written agreement, you're vulnerable. You might end up doing extra work for free, waiting months to get paid, or having a client claim they never agreed to your terms. A solid contract prevents all of that.
Lawyer Brionna Ned says that most business owners don’t understand legal risk. She told me in an interview:
“Being strategic is just knowing your ‘why.’ Why you do something, from a legal perspective, is because you know what your legal risks are and you've prioritized them in your business.”
Operating without a solid contract opens you up to a lot of legal risk.
Anna Burgess Yang
5 things every freelance contract should include
Here are the core elements that make a contract actually protective. These five items form the foundation of any freelance agreement, and they're straightforward enough to include in even the simplest contracts.
You can look for examples of freelance contracts online. The Freelancer’s Union has a free one you can start with and modify. If you use Google Workspace, you can use the built-in e-signature feature to have your client sign.
Scope of work
Define exactly what you're delivering: the deliverables, how many rounds of revisions you’ll do, how often you’ll meet with the client, and what falls outside the agreement. This is your strongest defense against scope creep.
Be specific. Instead of "I'll write blog posts," say "I'll deliver 4 blog posts, 800-1,000 words each, with 2 rounds of revisions included." The more detail, the better.
Payment terms
Within the contract, state your rate, when you'll invoice, how payment will be made, and what happens if an invoice is late.
You can also include a kill fee: a portion of the project fee you'll receive if the client cancels mid-project. You don’t have to offer a kill fee, but sometimes it makes sense. I’ve only had to invoke a kill fee a handful of times, but it was because the project simply wasn’t possible, and I’d already put work into it.
Most of my contracts specify Net 30 terms, meaning the client has 30 days to pay an invoice. If I'm doing a large project, I sometimes request a 50% deposit upfront to reduce my risk.
Timeline and deadlines
List the project milestones, delivery dates, and any penalties if the client delays approval or feedback. This protects you if a client's slow responses impact your ability to deliver.
For example: "Client will provide feedback on deliverables within 5 business days. If feedback is delayed beyond that, project deadlines will shift accordingly."
Intellectual property and usage rights
Clarify who owns the work once you deliver it. Will the client own it completely, or do you retain some rights? If they're licensing it from you, what can they do with it?
This matters a lot depending on your work. A copywriter might want to retain rights to certain pieces for a portfolio. A developer might transfer all code ownership. There's no one right answer... just make sure it's in writing.
Termination clause
Explain how either party can end the agreement, how much notice is required, and what happens to payment for work still in progress.
A simple version: "Either party may terminate this agreement with 14 days’ written notice. Client will pay for all work completed, all projects still in progress, and deliverables provided up to the termination date."
Build from your baseline
A contract doesn't have to be complicated or intimidating. Start with the five elements above, add any industry-specific clauses that matter for your work, and you're done.
As you grow, you'll refine it based on your real experience with clients. Every time something comes up that makes me think, “I wish that were in my contract,” I add it. If you’re not comfortable making edits yourself, paying a lawyer might be worth it for the peace of mind that you have a contract you can use for years.
Not sure where to get started with a client proposal or contract?
Check out this free checklist and download a template.
Common mistakes freelancers make with contracts
- Starting work before the contract is signed. Always, always wait for a signed agreement. Once you start, you're at risk.
- Not including scope (or making it too vague). Vague language like "ongoing support" or "as needed" can come back to bite you. Be detailed about what you're committing to.
- Not reading the non-compete clause. If you’re signing a client’s agreement instead of your own, some clients slip in non-competes that restrict your ability to work with competitors. Push back if it's too restrictive.
- Not having a late payment policy. Even if you don’t charge a late fee or interest, your contract should state that any in-progress work will stop until any overdue invoices are brought current.
FAQs
Do I need a lawyer to create a freelance contract?
You don't need a lawyer to write a basic freelance contract, but having one review it is worth the cost if you're consistently working with high-value clients. For most early-stage freelancers, a template or sample contract (modified for your work) is fine.
What if a client refuses to sign a contract?
That's a huge red flag. A client who won't put an agreement in writing is a client who's not protecting themselves either, and that usually means trouble down the line. Walk away if you can, or only work with them on very small projects where you're comfortable with the risk.
Should I use the client's contract or my own?
Ideally, your own. Client contracts are written to protect them, not you. That being said, you can start with their template and negotiate the terms that matter most, such as scope, payment terms, and IP rights. Don't let them pressure you into accepting everything as-is.
How do I handle scope creep without a contract?
You can't, really. Without a contract, you don't have a reference point to point to when the client asks for "just one more thing." Get a contract in place from the beginning.
What is a kill fee in freelancing?
A kill fee is the amount you'll be paid if a client cancels the project before completion. It's usually 25-50% of the total project fee, depending on how far along you are. It protects you from losing money on a project that falls through.
