Hiring an employee or freelancer
Freelance Services Agreement
Agreement with an independent service provider: scope of work, deliverables, fee, payment terms and ownership of the work.
About this agreement
Prepare a services agreement between a client and an independent service provider — a freelancer, consultant or contractor — in Israel. Set out the scope of work, deliverables, fee and payment terms. The agreement is meant for a genuinely independent engagement, not for someone who in practice works like an employee.
Check the scope before you start
Read these scope conditions before starting. The guided form asks you to confirm each statement.
The service provider runs an independent business, issues invoices or receipts, and will not work as part of the client’s staff under its direction.
If the relationship works like employment in practice, a labour court may treat it as employment whatever the agreement is called. In that case use an employment contract instead.
The service provider is not a current or recent employee of the client who is switching to the same work as a contractor.
Moving an employee to a contractor arrangement for the same work is a common sign of hidden employment. Get legal advice first.
What the guided form covers
The published form is organized into these topics. Some questions appear only when relevant to your answers.
Is this agreement right for you?
Confirm all six points. If any of them is not true, this template does not fit: use an employment contract or speak to a lawyer.
The client
Who is ordering the work. For a company, add the person who signs for it.
The service provider
Who does the work and how it is registered for VAT. This decides whether VAT is added to the price.
The work
Describe the work so that someone outside the deal would understand what is included and what is not. Write in the language of the document: text is printed exactly as typed.
Price and payment
The fee covers all the work described. Expenses are reimbursed only if they are listed here.
Ownership and working terms
Who owns the deliverables, who does the work and how personal information is handled.
Liability and ending the agreement
The liability cap, the correction period, confidentiality, and what happens if the work ends early. Work done up to termination is paid, unless the client ends the agreement because of a breach by the service provider.
Signing
Where and when you will sign. Check every detail before creating the document.
What to prepare before you start
Have both sides’ full names or business names, ID or company numbers, addresses and contact details ready. Check that the service provider operates as a registered business and can issue tax invoices or receipts.
Describe the services and each deliverable concretely: what will be delivered, in what form and by when, how many revision rounds are included and how the client approves the work.
Agree on the fee before VAT, the payment terms or milestones, any reimbursable expenses, and what the client pays if the project is cancelled before completion.
Decide who owns the work results and when ownership passes, whether subcontractors may be used, whether personal data will be handled and whether professional-liability insurance is required.
What to check before signing
Check that the agreement describes how the work will actually be done. Calling the provider independent does not settle the matter: if in practice the provider works under the client’s direction, at set hours and as part of its staff, a labour court may find an employment relationship. In that case use an employment contract or get legal advice.
This preparation guide helps you organize information. It does not determine whether a template fits your circumstances or replace advice from a qualified Israeli lawyer.
From your details to a document
- Open the guided form and enter the details requested for your agreement.
- Review names, amounts, dates and any choices in your answers. Correct missing or inconsistent information before finalizing.
- When the document is available to your account, download the PDF and review the full text with the other party before signing.
After you download
- Both sides sign the agreement, and each keeps a signed copy.
- Keep a written record of approved deliverables, change requests and any extra work you agree on.
- The service provider issues a tax invoice or receipt for each payment, and the client pays according to the agreed terms.
- If the scope of work changes materially, sign a written amendment rather than relying on messages or emails.