A good contract ensures that both you and your client are on the same page about expectations, payment, timelines, and rights. Let’s take a look at what should (and shouldn’t) be included in a freelance contract, particularly for those of us here in Australia, but with insights that remain relevant for freelancers around the world.
Freelancing is freedom, but with that freedom comes the responsibility to protect yourself legally. One of the best ways to do this is by having a solid freelance contract in place.
A good contract ensures that both you and your client are on the same page about expectations, payment, timelines, and rights. Without one, you might find yourself in a situation where your hard work isn’t rewarded—or worse, you might end up in a legal battle over ownership of your work.
Let’s take a look at what should (and shouldn’t) be included in a freelance contract, particularly for those of us here in Australia, but with insights that remain relevant for freelancers around the world.
What Should Be Included in a Freelance Contract?
Freelance contracts are like a map for a project: they guide the process, set boundaries, and ensure both parties are working towards the same goal. Here are the essential elements you should include:
1. Scope of Work (SOW):The most important part of any contract is the scope of work. This section should detail exactly what the client expects you to do. Be specific—vague terms like “assisting with design” or “writing content” leave room for misunderstandings. Break it down into clearly defined tasks and deliverables.
Pro Tip: You should outline what’s not included too. This prevents any scope creep, where clients ask for extra work without proper compensation.
2. Timeline and Deadlines:Set clear timelines for each project phase, including deadlines for drafts, revisions, and final submissions. Be realistic about how much time each task will take, and make sure both you and the client agree to these deadlines.
In Australia, if the deadlines are tight, you can state that delays on the client’s part could affect the delivery of your work—so make sure your timeline is flexible enough to accommodate this.
3. Payment Terms:Be clear about your rates (hourly, per project, or retainer), payment methods (bank transfer, PayPal, etc.), and payment schedule (weekly, monthly, upon completion).
Tip for Australian Freelancers: Make sure you clarify whether the rate is exclusive of GST (Goods and Services Tax), as freelancers are required to charge GST if their annual turnover exceeds the $75,000 threshold. Don’t forget to mention any late fees if payments aren’t made on time. For international clients, consider whether you’ll work in their local currency or AUD and specify this upfront. Payment should always be handled transparently.
4. Rights and Ownership:This is a huge one. You need to clearly define who owns the work once it’s complete. In Australia, unless otherwise stated, the creator of the work holds the copyright. However, you can assign or license the rights to your client.
Tip: Consider whether you’re granting exclusive or non-exclusive rights. Exclusive rights mean your client owns the work outright and you can’t use or sell it elsewhere, while non-exclusive rights mean you can still use the work for your own portfolio or sell it to others. Make sure this is clearly defined in your contract.
5. Revisions and Edits:Clients often expect revisions to the work. Specify how many rounds of revisions are included in the contract, and what constitutes a “revision” (not a complete rework). If you’re offering additional revisions, outline how much they’ll cost.
6. Termination Clause:Life happens, and projects get cancelled. A termination clause specifies the conditions under which either party can end the contract. Be sure to clarify what happens to the work already completed and whether you’re entitled to partial payment if the contract is terminated before completion.
For Australian Freelancers: It’s also advisable to reference the Australian Consumer Law (ACL), which may give clients the right to cancel contracts under certain conditions. Familiarise yourself with these rights to ensure you’re not left in the lurch.
What to Avoid in Your Freelance Contract
Now that we’ve covered the must-haves, let’s talk about what you should avoid when drafting your freelance contracts:
1. Vague or Undefined Terms:Terms like “reasonable time,” “best effort,” or “unlimited revisions” might sound good, but they leave a lot of room for interpretation. Always define terms clearly and make sure both you and your client understand what’s expected.
2. No Payment Schedule or Delayed Payments:Never agree to work with no firm payment terms. It’s tempting to start a project without a guarantee of payment, but it’s a recipe for disaster. Always specify payment amounts, due dates, and the agreed-upon method.
3. Overly Broad Ownership Rights:If a client insists on getting exclusive rights to your work, consider whether it’s worth it. You should never hand over complete ownership of your intellectual property unless the client is paying a premium for it.
4. Unclear Work Hours:Unless you’re on a retainer, you’re not obligated to track your hours if you’re working freelance on a per-project basis. Make sure the contract doesn’t push you to commit to unreasonable work hours or an “on-call” status without additional compensation.
5. Lack of Clear Exit Strategy:Contracts should always include a way out. Never sign one without clear terms for termination, as this can protect you if the relationship goes south.
International Considerations: What’s Different?
Freelancers working with international clients need to consider a few additional things. Even though the basic contract principles remain the same, different countries have different regulations:
- Currency and Payment Methods: Be clear about the currency you’ll be paid in and the method of payment. PayPal, TransferWise, and wire transfers are common international methods.
- Taxation: Understand the tax implications of working with clients in other countries. For instance, freelancers in Australia are subject to GST on income, but different countries have their own taxation systems.
- Legal Systems: If you’re working with clients from outside Australia, be aware that disputes might be subject to international law, which can get tricky. It’s a good idea to specify the governing law of the contract in case a dispute arises.
A Note On Publishing Contracts: For the authors among us, my fellow Scribblly blogger Grant Griffith has a series called Market to Manuscript, which discusses, among other things, book contracts—what they should include and what you should look out for. As this post is about freelance writing contracts, I highly recommend checking out his series if you’re dealing with publishing contracts. It’s essential reading for any self-published or indie author.
Helpful Resources
To make sure your freelance contract is in line with Australian laws, here are some links you can use:
- Australian Government Business Website: business.gov.au.
- Fair Work Ombudsman: fairwork.gov.au.
- Australian Consumer Law (ACL): consumerlaw.gov.au.
- The Australian Copyright Council: copyright.org.au.
Final Thoughts
Having a solid contract in place doesn’t just protect your rights—it also builds trust with your clients. They’ll respect your professionalism, and you’ll have the peace of mind that you’re working under fair terms. So, the next time you sign a freelance agreement, don’t just skim the details—take the time to understand what’s in there and make sure both you and your client are on the same page.
☕ If this column helps you keep your clients happy and your sanity intact, you can shout me a coffee at buymeacoffee.com/scribblyteam. It keeps my deadlines met and my invoices sent.