My company employs teaching staff on a freelance/ self employed basis and pays them after they invoice us for work done.They work from our premises with our students . What kind of contractual information do I need to provide if any/ what other legal obligations are we under with regards to these staff?
As these freelancers are providing a service, it would be normal to have a contract for services whereby both parties are clear on the relationship (there is a Contract for Services template available for free download on our website).
This need not be overly formal (and could even be in the form of a letter from you to them). However it should contain the following:
- heading/title – e.g. “Arrangements for the Provision of Teaching Services”
- description/purpose/the service (basically the product/service description)
- parties (your company and the individual teacher – including addresses)
- date
- where and when the services will be delivered
- any equipment or resources provided by you or the freelancer
- term – period of agreement
- pricing (refer if appropriate to a schedule if this is complex)
- pricing adjustment (for example annual increases linked to suitable index)
- payment terms (invoicing / vat etc)
- any expenses payable
- clear statement that the freelancer is responsible for their own tax / NI arrangements
- any insurance requirements of the freelancer
- specific responsibilities of the freelancer including any performance standards / professional code of conduct etc. expected
- specific responsibilities of your company
- ownership of any material produced by the freelancer when working for you and what happens to this at the end of the contract
- how sickness absence should be reported and dealt with
- confidentiality
- any conditions around working for a competitor
- termination and force majeure
- prevailing laws
- signatures of both parties
In terms of other legal obligations, HMRC are particularly interested in an individuals employment status and the impact on payment of tax and NI – you can satisfy yourself that your freelancers are effectively self employed by following the guidance here: http://www.hmrc.gov.uk/
If the individual does not prove to you they are self-employed (e.g. through a letter from the tax office), and they fail to pay their tax / NI your company may well be liable for this. Many companies now automatically deduct tax / NI (incl employers NI) from their freelancers to avoid this.
The only other obligations would be your duty of care to them to provide a healthy and safe working environment and to avoid any form of discrimination.
(Article reviewed January 2018)
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