Freelance Contract Red Flags: 12 Warning Signs Every UK Freelancer Must Know

You've just landed a great project. The client sends over the contract, and you're excited to get started. But before you sign, there could be clauses buried in that document that will cost you thousands or worse, trap you in a bad relationship for months.

As a UK freelancer, you don't have the same protections as employees. That contract is everything. One freelancer we spoke with signed a "standard agreement" without reading it carefully. Six months later, when the client delayed payment for 90 days, she discovered there was no late payment clause and no way to claim statutory interest.

Why Freelance Contracts Need Careful Review

Unlike employees, freelancers don't have statutory protections like unfair dismissal rights or guaranteed sick pay. Your contract is your safety net. The problem? Most clients use template agreements that heavily favour them.

Under the Supply of Goods and Services Act 1982, you have some basic rights like being paid a reasonable price if none is specified. But "reasonable" is vague, and disputes are expensive. A solid contract prevents problems before they start.

Payment Red Flags (1-4)

Red Flag 1: No Payment Terms Specified

If your contract doesn't state when you'll be paid, you're at the client's mercy. Always specify: "Payment due within 14 days of invoice" or "Net 30 days from completion."

Red Flag 2: Payment Terms Over 60 Days

Net 90 or Net 120 payment terms are cash-flow killers for freelancers. These are common in large corporates, but you can (and should) push back. Suggest Net 30 or milestone-based payments instead.

Red Flag 3: No Late Payment Interest Clause

Under the Late Payment of Commercial Debts (Interest) Act 1998, you're entitled to statutory interest (8% + Bank of England base rate) plus fixed compensation. But you need to claim it. Include a late payment clause to make this automatic.

For more detail on this, see our complete guide on late payment clauses for freelancers.

Red Flag 4: "Payment Upon Client Approval" with No Timeline

This is dangerous. If the client can withhold payment indefinitely by simply not approving your work, you're stuck. Always add: "Approval deemed granted if not received within 7 business days."

Scope & Deliverables Red Flags (5-7)

Red Flag 5: Vague Scope Descriptions

"Design a website" is not a scope. "Design a 5-page WordPress website with custom homepage, about page, services page, blog, and contact form" is a scope. Vague descriptions lead to endless scope creep.

Red Flag 6: Unlimited Revisions

"Client may request unlimited revisions" means you could be working on this project forever. Specify: "Includes 2 rounds of revisions. Additional revisions billed at £X per hour."

Red Flag 7: No Change Request Process

Without a formal change request process, the client can keep adding "just one more thing" without additional payment. Include language like: "Changes outside the agreed scope require written approval and will be quoted separately."

Intellectual Property Red Flags (8-9)

Red Flag 8: All IP Transfers Before Payment

Never transfer intellectual property rights before you're paid in full. The clause should read: "IP transfers to Client upon receipt of final payment." This gives you leverage if the client delays payment.

Red Flag 9: "Work Made for Hire" Language

"Work made for hire" is a US concept that doesn't directly apply in UK law. Under the Copyright, Designs and Patents Act 1988, you own the IP you create unless you explicitly assign it. Make sure the contract specifies when IP transfers (ideally after payment).

Restrictive Clause Red Flags (10-12)

Red Flag 10: Overly Broad Non-Compete Clauses

A clause saying "Contractor shall not work for any competitor for 12 months" could prevent you from earning a living. Non-competes for freelancers should be narrow: specific competitors, limited duration (3-6 months max), and reasonable geographic scope.

Learn more in our detailed guide on non-compete clauses for UK freelancers.

Red Flag 11: Non-Solicitation Beyond Reasonable Scope

It's reasonable for a client to say you can't poach their employees. It's not reasonable if they prevent you from working with anyone you met through the project including other freelancers or their clients.

Red Flag 12: One-Sided Termination Rights

"Client may terminate at any time with 7 days notice. Contractor must provide 30 days notice." This isn't fair. Termination rights should be balanced, or at least specify that you'll be paid for work completed.

What To Do When You Spot a Red Flag

First: don't panic. Most contract issues are negotiable. Clients often use template agreements without thinking through every clause. Here's how to raise concerns professionally:

1. Be specific: Don't say "I don't like clause 7." Say: "I'd like to propose changing the payment terms from Net 90 to Net 30 to align with industry standards."
2. Explain why: "This helps me manage cash flow as a small business" is more persuasive than "It's unfair."
3. Offer alternatives: "If Net 30 isn't possible, could we do milestone payments? 50% upfront, 50% on completion?"

When to Walk Away

Some red flags are deal-breakers:

• Client refuses to specify payment terms
• IP transfers before payment with no negotiation
• Unlimited liability clauses
• Non-compete that would prevent you earning a living

If the client won't budge on critical issues, it's often a sign of how they'll treat you during the project. Trust your gut.

Quick Red Flag Checklist

Frequently Asked Questions

What makes a freelance contract legally binding in the UK?

A contract is legally binding when there's: (1) an offer, (2) acceptance, (3) consideration (payment), and (4) intention to create legal relations. It doesn't need to be in writing for most freelance work, but written contracts are much easier to enforce.

Can I negotiate a freelance contract after receiving it?

Absolutely. Contracts are negotiable until both parties sign. It's completely normal and professional to suggest changes. Most clients expect some back-and-forth.

What should I do if a client won't remove a red flag clause?

Try to understand why. Sometimes it's company policy (e.g., Net 60 payment terms for all suppliers). If it's a deal-breaker and they won't budge, you might need to walk away. For less critical issues, consider if the project is worth the risk.

How long should I take to review a freelance contract?

Take as long as you need usually 2-5 business days is reasonable. If a client pressures you to sign immediately, that's a red flag in itself. A good client understands you need time to review properly.

Want a complete checklist? See our 15-point contract review checklist.