Hiring Freelancers to Get Off the Ground? Here’s Why You Need a Solid Independent Contractor Agreement

Nowadays temps or employees commonly known as freelancers, are a top resource for fast growing companies. Even big institutions employ freelancers to work with them.

Hiring freelancers is beneficial on many accounts; however, there will always be drawbacks. To minimize on the shortcomings, regardless how perfect a fit, an employer-freelancer relationship requires an Independent Contractor Agreement.

Freelance Workers

Let’s get to know the freelance employees and their side of the deal. As a self-employed individual often determining how much they work, the employment can be short-term or long-term. Also, they may choose to work independently as most use internet-based tools and applications to apply and service a job. All this can pose drawbacks just as it packs lots of benefits for the employer – let’s check them out.


  • Unique Skills

You hire freelancers based on their specialization and the company’s need. There is often no need for you to train them since they already know the nature of the work from prior engagements.

  • Lesser Salary Costs

The wage bill for a company of freelancers is less compared to a full-time employee. Sometimes, there is no need for the business to pay for insurance, health benefits, and other expenses customary to a full-time employee relationship.

  • High Quality of Output

Freelancers are often experts in their chosen fields. They work hard to provide the best output to maintain their jobs and livelihoods.

  • Improved Turnaround Times

The working hours of freelancers are flexible. They can work more hours to finish their project.

  • Reduction of the Employer’s Risk

The freelancers are not entitled to collect unemployment insurance, compensation benefits, and other benefits. Their working contracts are easier to conclude compared to full-time employees.


  • Multiple Employers

Freelancers can work with and for one or more employers. As such, their attention will be shared across the various clients they serve. In the relatively short long run, they may experience exhaustion, which compromises their tasks.

  • Lack of Teamwork

The lack of physical presence and interaction contributes to the difficulty of cooperation between the team members.

  • Lack of Commitment

Most freelancers opt to employers who can provide the highest pay. They will grab the best offer and will let go of those work with a lesser pay.

  • Less Control Over Freelancers

Often, employers will face a hard time disciplining freelancers.

  • Rarity of Long-term Work Relationship

Most of the freelancers work depending on the workload provided by their employer. There will do no job if there is no particular task given to them.

Independent Contractor Agreement

A company could care no less for an Independent Contractor Agreement. However, there are valid reasons why you should have one:

  1. The Independent Contractor Agreement establishes the working relationship.
  2. The Independent Contractor Agreement classifies the worker for tax purposes.
  3. The Independent Contractor Agreement sets the parameters of the working relationship.
  4. The Independent Contractor Agreement safeguards the interests of the employer and the worker.
  5. The Independent Contractor Agreement also determines the payment, deadlines, benefits, liabilities, and termination of the contract.

Reliable Agreement

A poorly drafted Independent Contractor Agreement may lead to legal implications. It should be exceptionally written by experts to avoid ambiguity and ensure its substance. The company may employ experts to draft the agreement, or refer to their Legal GPS, which is for help with drafting a fail-safe agreement. That is because a reliable agreement protects the company from future repercussions.