Freelancers: features and benefits of hiring freelancers

It is common for organizations involved in service, industrial or promotional activities to face the need for temporary staff augmentation, however, due to certain internal restrictions they are unable to hire new professionals into permanent positions. This is where temporary employees who provide their services to companies for a certain period of time come to the rescue. Here we will explain in more detail who is a freelancer, what are the advantages and peculiarities of his/her work organization.

Who is a freelancer?

A freelancer is a professional who provides services to one company, but is officially employed by another organization. In fact, he/she can be considered a temporary “leased” employee, especially for a short period of time. This practice is applied when the client company needs additional staff and requires a professional for a season or the one with narrow area of expertise.

It can be said that the freelancer is officially related to one company but actually rendering his services for the benefit of another company.

There are various ways to legally hire freelance staff, but the most convenient option is to cooperate with outsourcing or outstaffing agencies, which provide services including staff leasing.

Advantages of freelance staff

Freelance employees are advantageous for many reasons:

1. Cooperation with professionals who are not a part of the company’s staff does not imply the conclusion of an employment contract. This means that they are not covered by benefits that the company provides only to its employees, such as paid vacations, bonuses, compensation, rewards, special product discounts, etc.
2. This approach reduces the permanent staffing costs, which can significantly reduce the company’s budget.
3. Freelancers reduce the workload of the accounting and HR departments, as there is no need to deal with the whole procedure of registration, tax payment and payroll. It also eliminates the need to constantly strive to improve working conditions.
4. The company may always count on qualified experts with the required experience without the need for a long searching process. Outsourcing company takes care of the professional level of employees and provides already trained staff with the required expertise.

You also have the opportunity to hire foreign citizens without having to worry about bureaucratic procedures, staff records and tax issues, as well as problems related to migration issues. The contractor company shall bear the said responsibilities.

Peculiarities of work organization and conditions

An employment contract shall be concluded with the staff of the company, violation of the said contract may entail legal consequences. When hiring a freelance employee, a civil contract is usually sufficient. There is no need to provide TIN, diploma of education or employment history.

Obligations of freelancers stipulated in the contract:

1. Signing the contract.
2. Types of services provided with detailed descriptions.
3. Fixed deadlines for the contract performance.
4. Reporting details.
5. Responsibility for failure to fulfill obligations, errors or material damage.
6. Payment system and methods of getting remuneration.

The document also defines the employee’s rights, including the schedule, working hours, lunch breaks, rest days and possible bonuses. Freelancers shall not be governed by the employer’s corporate regulations, so when hiring them, even the smallest details that affect the quality of services rendered should be considered.

It is not required to prepare an individual dismissal order when terminating cooperation with such the employee. If the task is completed ahead of the deadline, an entry in the section dealing with the contractual relationship will meet the case, as evidenced by signatures.