If you’re starting out in freelancing - or you’ve recently taken the leap full-time - sorting out your contracts is one of the most important early jobs.

Good contracts don’t have to be complicated or full of legalese. They’re simply there to make sure you look professional, set clear expectations with clients and collaborators, and protect you when things don't go to plan.

Here are the key contracts freelancers should have, plus a few tips on keeping them up to date.

1. Terms of Service (your client contract)

Your Terms of Service (also called Terms & Conditions or a Services Agreement) are the foundation of your freelance business. This is the core contract you use with clients.

It should clearly cover:

Having a signed contract (or at least clear written acceptance of your terms) with each client helps avoid “we never agreed that” arguments and makes chasing unpaid invoices or pushing back on scope creep much easier.
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2. Data Protection / Data Processing Agreement

If your work involves personal data – for example, your client’s customer lists, usage data or HR records - you need to think about UK GDPR.

When you’re processing personal data on behalf of your client (they decide the purpose and means, you follow their instructions), they’re usually the data controller and you’re the data processor. In that case, UK GDPR requires a written contract between you, often called a Data Processing Agreement (DPA) or Data Protection Agreement.

That contract (or a DPA section in your main contract) should set out, among other things:

• What personal data you process and why.
• How long you’ll process it for.
• How you keep it secure.
• Whether you use any sub-processors.
• What happens at the end of the engagement (return or deletion of data).

You can also deal with things like data breach procedures, indemnities and liability caps – these aren’t strictly required by law but are common in practice.

If you’re collecting personal data for your own business (e.g. a mailing list), you’re the controller and you’ll need your own privacy notice and internal compliance, even if no client is involved.
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3. Sub-Consultant Agreement

As your workload grows, you may bring in other freelancers to help deliver projects - for example, a designer you brief, or a specialist developer on a technical build.

In that situation you’re effectively a client to them, so you should have a Sub-Consultant Agreement that covers:

• The services they’ll provide and deadlines.
• Their status as an independent contractor (not your employee).
• How and when they’re paid.
• Confidentiality and how they handle your client’s information.
• Intellectual property (for example, they assign IP to you so you can pass rights on to your client).
• Liability and any insurance you expect them to carry.

If they will process personal data, you may also need data protection terms with them that mirror your own obligations to your client.

Without a proper sub-consultant contract, you carry most of the risk with very little control over how the work is done.
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4. Employment Contracts (if you hire staff)

Many freelancers stay solo, but if you employ someone - even part-time - UK law requires you to give them a written statement of employment particulars on or before their first day. In practice, this is usually done as a full Employment Contract.

It should cover at least:

• Job title and main duties.
• Pay (salary or hourly rate) and how often they’re paid.
• Working hours and place of work (including any hybrid/remote set-up).
• Holiday entitlement and sick pay.
• Probationary period (if any).
• Notice periods.
• Pension details.
• Confidentiality.
• Any post-termination restrictions (for example, not poaching your clients).

A clear contract is both a legal requirement (via the written particulars) and a practical way to set expectations, protect your business and help your employee feel secure.
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5. Supplier Agreements

Even as a freelancer, you’ll rely on suppliers: software tools (like Crunch!), hosting providers, virtual assistants, co-working spaces, printers, subcontractors and more.

Often you’ll just accept a supplier’s standard terms, but it’s worth checking, at least for critical suppliers:

• How quickly they must deliver or respond.
• What happens if something is unavailable or there’s downtime.
• Any limits or exclusions of liability, and whether they’re reasonable.
• Who owns any IP created and how you can use it.

For key relationships, consider having the important points confirmed in writing – via a simple contract, order form with terms attached, or a clear email trail.
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6. Website Terms & Privacy Policy

If you have a website or portfolio, it’s worth putting some basic legal information in place:

• Website Terms of Use / Terms & Conditions - how visitors can use your site, any acceptable use rules, and who owns the content, branding and images.
• Privacy Policy - explaining what personal data you collect (for example, through contact forms, analytics or newsletter sign-ups), how you use it, how long you keep it and what rights people have under UK GDPR.

These don’t have to be long or fancy, but they show professionalism and help you meet your transparency obligations around personal data.
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7. Reviewing and managing your contracts

Contracts aren’t “one and done”. Laws change, your services evolve and your pricing shifts over time.

It’s a good idea to:

• Review your core templates at least once a year, or after major changes in your business.
• Check that your rates, inclusions and payment terms still reflect reality (and your experience level).
• Consider whether your late payment provisions, IP clauses and liability caps still give you the protection you need.

On the practical side, contract management tools can help you:

• Store documents securely.
• Use electronic signatures (which are valid for most everyday contracts in England and Wales).
• Track renewals and key dates.

You don’t need anything complex - even a simple system is better than hunting through old email threads.
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Key takeaways

Freelancing without proper contracts is a bit like working without insurance: you might be fine most of the time, but when something goes wrong, it can get messy quickly.

If you put in place:

• Solid client Terms of Service
• Clear data protection clauses where you handle personal data
• Sensible agreements with sub-consultants, employees and key suppliers
• Simple website terms and a privacy policy

… your contracts stop being something you worry about and start becoming part of how you win better clients and bigger projects.

Getting a lawyer to help draft or review your core templates once can save you a lot of time, stress and money down the line - and lets you focus on what you actually set out to do: great work for good clients.

If you’re thinking of freelancing, Sprintlaw’s expert lawyers can help you navigate your options and stay compliant. As a Crunch business, you’re also eligible for complimentary 12-month access to Sprintlaw’s Plus Membership - including unlimited lawyer consults and other benefits (normally £399/year, now £0 for your first year).

Disclaimer: All content contained in this publication is intended to provide general information in summary form on legal and other topics, current at the time of first publication. The content does not constitute legal (or other) advice and should not be relied upon as such. You should obtain specific legal or other professional advice before relying on any content contained on this website.

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