The importance of contracts as an essential part of every freelancer’s toolkit should not be underestimated. Not only do they outline the wants, needs and expectations of the parties, but they also provide a legal framework within which these will be achieved, and a back-up should legal intervention be required. Contracts provide a formal definition of the business relationship between the freelancer and agency or direct client.
For freelance contractors who might be viewed by HM Revenue & Customs as “disguised employees” within the IR35 “intermediaries” legislation, having sound contracts in place is all the more important.
One of the key benefits offered to members of the Professional Contractors Group (PCG) is a selection of draft contracts vetted by experts in commercial, employment and tax law. Many respondents to PCG's annual membership surveys say that they joined PCG specifically to gain access to these templates. Some of the contract templates are available to non-members too.
PCG has also worked closely with the Recruitment and Employment Confederation (REC) to develop an approved contract template for REC member agencies engaging limited company contractors.