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Video: How to set the terms of cooperation with a freelancer?

How to set up the relationship with the service provider? Does signing a non-disclosure agreement (NDA) imply a lack of trust towards the other party? And what form of cooperation with a freelancer should be chosen so that it is not a so-called “shvarc system”? In our video, we focus on these and other aspects of the relationship between entrepreneurs and suppliers in the form of freelancers or smaller companies.

dohoda o spolupráci s freelancerem
4 minutes of reading

Before the start of the cooperation

Certain agreements can be concluded before the start of the cooperation, which foreshadow the subsequent cooperation. Such an agreement can be a so-called NDA (non-disclosure agreement). Its basic aspects should be:

  • defining the basic definition of the project to be covered by the cooperation,
  • a definition of confidential information – ideally defined as broadly as possible to cover all possible cases,
  • contractual penalty – quantify it in a sufficient amount to take into account the potential damage caused by the leak, or negotiate potential damages separately,
  • identification of the persons to whom certain information may be disclosed.

When concluding a contract, it is generally not recommended to use contract templates downloaded from the internet. Their defects are unlikely to become apparent when the contract is drawn up and signed, but only in the event of a breach of a confidentiality agreement and possible legal disputes, by which time it may often be too late.

Tip: We have discussed more details of the NDA in our article.

Which contract should I choose for cooperation?

There are several types of contracts that can be used to define the actual course and content of the collaboration, such as a collaboration agreement, a work contract, and in certain circumstances a licence agreement. An employment contract also remains a classic option.

Be particularly careful if you would cover your relationship with a cooperation agreement but in reality it would be a disguised de facto employment relationship. In such a case, the “employer” may be fined up to CZK 10 million and the working individual who agreed to such a form of agreement may be fined up to CZK 100,000.

Cooperation Agreement

Whether you need to draw up a new collaboration contract or review your current one, we’re here for you. We’ll make sure your business collaboration goes off without a hitch. We will handle everything for you, quickly and flawlessly. You can pay only after the service has been provided.

Beware of the scam system!

If you want to avoid disguised illegal activities, beware of the following elements of your cooperation:

  • The remuneration is determined by the employer’s rate, not by the contractor’s price list,
  • thecontractor has a single customer,
  • the contractor uses the customer’s tools (business phone, computer),
  • the customer requires the supplier to perform the work personally,
  • the supplier appears to third parties as an employee ,
  • the work is typically performed in an employment relationship,
  • it is a continuous relationship, not a casual one,
  • the pay periods of employees and self-employed workers coincide,
  • The self-employed person does not put any resources into his/her activity except for the work itself,
  • Self-employed workers are provided with similar benefits as employees.

However, the existence of only individual elements does not automatically imply a quasi-cyst. Typically, there is an accumulation of several points.

Cooperation agreement

The cooperation contract itself is a so-called unnamed contract, its specific requirements are not found in the Civil Code. However, from the nature of the contract, certain necessary components can be identified:

  • The definition of the contracting parties,
  • definition of the subject of cooperation,
  • the basic conditions of the cooperation (scope, exclusivity, etc.),
  • liability – definition of where the liability of the sole trader extends and where the liability of the contractor begins,
  • payment terms – payment by the hour/per task,
  • contractual penalties – penalties for both parties should be included in the contract,
  • ways of terminating the contract.

Licensing agreement

A license agreement is typically used for the use of an item of intellectual property (e.g. music, graphics, etc.). A variation of a licence is an exclusive or non-exclusive licence. Exclusive means that the owner of the intellectual property right is not allowed to grant a licence to a third party, which is usually more advantageous to the customer. It is advisable to explicitly negotiate the possibility of interference with the work, so that the client is not solely dependent on the original author of the work.

Contract for the work

The contractor undertakes by this contract to carry out the work at his own expense and risk for the client and the client undertakes to accept the work and pay the price.

Typical for this contract is:

  • independent work,
  • independence of the contractor,
  • theacquisition of the work at the contractor’s own expense and risk,
  • the result is the execution of the work,
  • payment.

More detailed information can be found in our video

We would like to thank APEK – Association for Electronic Communication for their cooperation.

Are you solving a similar problem?

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Cooperation Agreement

Whether you need to draw up a new collaboration contract or review your current one, we’re here for you. We’ll make sure your business collaboration goes off without a hitch. We will handle everything for you, quickly and flawlessly. You can pay only after the service has been provided.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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