by EasyEditor Newswire

 

Hundreds of thousands of workers turning freelance or starting new

businesses to make a living in the face of a tough economic climate have

been warned to ensure they protect their intellectual property and guard

against the pitfalls of late payment.

According to the Office for National Statistics (ONS) the number of

self-employed people rose by 59,000 in the first three months of this

year to reach a new high of 3.93 million.

While full-time job vacancies have fallen by 45 per cent from

pre-recession levels the number of self-employed workers looks set to

grow over the next couple of years.

While at least a quarter of small businesses throughout the UK admit the

recession has had a dramatic impact on them 81 per cent claim they have

turned to freelance workers to help with short-term projects instead of

employing permanent staff.

Freelancers are now an important part of the UK labour force

contributing at least 8 per cent of business turnover and are considered

a low risk, flexible resource that can be turned on and off as firms

start to grow again.

“Whether people choose to become freelance or are forced into working

for themselves because of the lack of permanent jobs they still need to

protect themselves and their intellectual property,” said David Reilly

of Create Ts & Cs.

“The need for properly worded terms and conditions of business has never

been more prevalent.

“Doing business without terms and conditions means running the risk of

not getting paid and, in some circumstances, losing the rights to

intellectual property.”

The recession has done a lot to break the psychological contract between

employer and employee which in many ways promoted a degree of loyalty

and trust which is different between freelancer and client.

“Many freelance people and new businesses have to wait months to get

paid and risk losing control of their work if they don’t spell out their

terms and conditions before taking on a job. It doesn’t have to be

complicated just straightforward and unambiguous so there is no room for

dispute.

“It’s an important time to value what you do or what your business has

to offer. Commitment to seeking formality is critical and discourages

the unscrupulous from not paying or the thrifty from avoiding late payment”.