Do you know several digital professionals like yourself have been sued or threatened with legal action over their work?
It’s crazy right, but yeah, it’s happening.
While freelancing may promise freedom, it also opens the door to a world of legal pitfalls and scams that can make it more perilous than traditional jobs.
Sadly, freelancers are gleefully signing NDAs and similar work agreements without knowing what they are.
Many others don’t even know agreements like this exist and why they need them.
Digital talents are putting themselves at risk and losing thousands without even realizing it—chances are high that you are unknowingly making the same legal mistakes.
In this blog, we’ll discuss several legal issues digital professionals face and practical ways to avoid them.
P.S: After reading this blog, you might find yourself looking up some job contracts you’ve signed, well if you notice loopholes, don’t fret, we’ve got a gift for you at the end of the blog)
Common Documents Professionals Overlook
The Non-Compete Trap
You know that tingling desire to start your own thing, maybe your own business or agency, coincidentally in your client’s industry?
Well, your old job might have a rule that keeps you from doing exactly that.
A non-compete agreement could prevent you from working with certain clients or even in the same industry for a set amount of time after you stop working with your client.
So, if you’re thinking of freelancing in the same field you just left, you might want to make sure there’s no invisible chain holding you back.
Non-Solicitation—Watch Out for the “No Stealing” Clause
Have you ever thought about offering your services to a former coworker or signing a deal with your old boss’s clients?
If you’ve signed a non-solicitation agreement, that could be a very dangerous decision.
This clause can stop you from reaching out to your old clients or even hiring your old team members.
So, even though you might just want to reconnect with your previous clients, you want to tread carefully—you might be crossing legal boundaries here.
The Non-Disclosure
This is one of the foremost oversights that could cause the bulk of legal issues freelancers face.
Non-disclosure agreements (NDAs) are not just about keeping your employer’s trade secrets safe.
They can also limit how you build your freelance business.
If your old employer had a unique business model, you might not be able to use the same strategies or approach.
It’s like being given a recipe for success, then told you can’t cook it once you leave.
Common Legal Issues Freelancers Face
Lack of Written Agreements/Contracts
So, you just landed your first big freelance gig.
You gleefully shake hands with the client, exchange emails, and you’re good to go.
But guess what? Without a proper contract, you’re jumping into a pool without knowing how deep it is—you might think you’re safe, but there’s a chance you’ll hit the bottom hard.
When it comes to legal issues freelancers face, the lack of a clear and binding contract is one of the most common and costly mistakes you can make
Freelance contracts aren’t just formalities—they’re the blueprint for your entire working relationship.
Why do you need a contract?
A well-written contract lays out the terms of your work, payment schedules, deadlines, and what happens if things go wrong.
It protects you from vague promises that might get twisted intentionally or otherwise later.
They make sure everyone knows what’s expected, leaving no room for confusion.
Without it, you’re putting your work at risk.
So, before you start on your next project, take your pen and put things in writing.
It might seem needless and stressful, but it’s going to save you a lot of headaches down the road.
Tax Preparation
Taxes…arghh
(Taxes isn’t exactly the best word in everyone’s dictionary really😀)
For digital talents, it’s even more unpleasant.
But legal challenges often begin with something as seemingly straightforward as taxes.
You might think you’ve got everything under control, only to realize that missing a single step could cost you much more, all for an honest mistake.
Why do Freelancers Face Tax Challenges?
That’s a good question.
When you’re working the usual 9-to-5 grind at a traditional job setting, taxes are pretty straightforward.
Your employer does the calculations, aggregations, etc., and most of the work.
However, being a freelancer, you’re doubling as a boss, accountant, and even HR department.
In short, you are responsible for figuring out how much you owe, when to pay, and how to keep track of your earnings.
And if you get it all wrong, well, you might want to know that the FIRS isn’t a babysitter.
They’ll still come knocking, bearing gifts you don’t exactly like😀.
Insurance
Insurance is one of those things you wish you wouldn’t need…until you do.
Skipping insurance can open you up to some of the most overlooked legal issues freelancers face, and when it goes wrong, it can cost you big time.
So, why should you care about insurance?
Imagine you’re working on a dream project, and then something unexpected goes wrong.
It could be that a client claims your work caused them financial loss, or your precious laptop, and your other work devices get stolen.
And now, you’re almost going nuts trying to fix this, and at the same time, several lawsuits are also piling down on you.
Unlike traditional employees, as a freelancer, you don’t have a safety net of insurance provided by employers.
You’re responsible for protecting yourself and your business from whatever loss or legal cases you may experience.
And the potential legal issues freelancers face from not having insurance are very immense.
Although insurance might feel like a needless expense when you’re trying to save every dollar, rather than see it this way, think of it as investing in peace of mind.
So that when the unexpected happens, you’re not left financially or legally vulnerable.
Everyone knows freelancers face enough challenges as it is, don’t let the legal issues freelancers face, like lawsuits or liability claims, add to your stress.
Trade Descriptions: When Words Come Back to Haunt You
Being a freelancer, your words are your currency.
(Witty right😀, well don’t be carried away, it’s the truth)
Whether you’re writing a description for your portfolio, pitching for a new project, or even writing your website bio, how you can convince your audience through the words you employ matters a lot.
While you might know this, exaggerating, overpromising, or even being vague can lead to very serious trouble.
This is one of the legal issues that no one talks about until it’s too late.
Let’s break it down to make it easier for you to understand.
Imagine marketing yourself as “the fastest SEO writer who delivers projects in 24 hours.” Sounds catchy and appealing, right?
Well, it does until a client demands an almost impossible turnaround, and you can’t deliver within the time frame.
Now, that catchy line feels more like a trap.
Misleading trade descriptions can lead to angry clients, disputes, or even lawsuits claiming false advertising.
While it’s understandable that standing out as a freelancer might not be the simplest of things, even so, promising results that you won’t exactly meet up with, is a shortcut to legal issues.
Remember, honesty is (still) the Best Policy.
Many of the legal issues freelancers face around trade descriptions often have to do with one thing: trust.
If clients feel deceived, they might demand refunds, refuse to pay, or worse, take legal action.
Intellectual Property (IP) Theft
Imagine pouring your heart and soul into a work, you’ve had sleepless nights perfecting it, and then out of nowhere, someone takes your work and claims it as theirs.
Unfortunately, it’s a common legal issue and it can leave you powerless, unpaid, and frustrated.
As digital talents, we thrive on creativity. But here’s where things get funnier—ideas are quite slippery.
The moment you hand over that top-notch logo design, killer article, or game-changing app, someone could snatch it and claim it to be theirs, without paying or giving you credit.
The theft here isn’t solely about robbing you of money; your time, effort, and reputation are also wasted.
Yes, intellectual property theft is indeed one of the scariest legal issues freelancers face, but it’s also preventable.
So how do you prevent it?
The first step is to get intentional with contract usage and agreements, seriously, this can save you a lot of unnecessary pain later on.
Specify when ownership is transferred, and mind you, this is usually after clients have paid.
Secondly, a watermark is another strategy, especially for visual creators, even if someone tries to steal your work, they are stuck with your watermark all over it.
In several countries, copyright protection is automatic the moment you create something.
However, when you register your work with the appropriate authorities, it adds an extra layer of security.
Lastly, tools, like Google reverse image search, plagiarism checkers, and so many other similar ones, are your friend.
They help you keep an eye on where your work is popping up online.
This way if anyone dares to mess with your intellectual property?
You’ll be ready.
Liability for Mistakes or Oversights: When “Oops” Costs You
Let’s face the reality, nobody’s perfect, not even you😉.
A missed deadline here, a typo there, or even a forgotten detail in a project.
These innocent mistakes happen; they might just be natural.
But for a freelancer, these supposedly innocent mistakes can be very costly.
Unlike a traditional job where you might share the blame with your team, as an independent freelancer all eyes—and legal fingers—point at you.
This is one of the most nerve-wracking legal issues freelancers face, and it’s enough to keep you awake at night.
You might think, “Well, It’s just a tiny error. No big deal, right?”
Well, you’re very wrong.
Imagine being a graphic designer who accidentally provides a logo in the wrong color.
Or maybe you’re a copywriter who misses a very critical detail in a product description.
That small oversight could cost your client money, time, or even their reputation, and guess who’s legally responsible for fixing it? You
Making mistakes as a freelancer isn’t just embarrassing, it can lead to serious financial and legal repercussions.
Lawsuits, damaged relationships, or having to redo entire projects without pay—none of it is fun, but it’s part of the reality.
Although mistakes are part of being human, when they happen in freelancing, they can become one of the trickiest legal issues freelancers face.
We’ve painted the problems well enough, now let’s get to the good part.
What’s the Way Forward?
Lexlance.
Does the word above sound somewhat like freelance?
(Yeah, you can read it again😀)
Well, Lexlance (as classy as it might sound) is all about safeguarding you, digital professionals and business owners in Nigeria (including those in the Creaitz community) from the endless legal pitfalls discussed above.
At Creaitz, we’ve partnered with Lexlance, because of our growing reach of new digital talents who require legal guidance and services.
To enjoy these services, visit Lexlance.com, sign up as a client (providing your name and other required information), verify your email address and voila, you are in!
Every time you need legal services or guidance, post a project and you will be matched with a professional and experienced lawyer.
That’s goodbye to legal issues in your career journey.
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