When people hear about freelancing, they most often imagine a person who is engaged in copywriting, web design, programming and other remote professions.
The term “remote work” became widespread in every country in 2020, when employees of many companies were transferred to work from home. They continued to perform their duties, remaining hired employees, but did so not in the office, but via the Internet.
A modern freelancer can work in an office if a specific project requires it. And the term “remote work” is actually applicable to both an employee and a freelancer. Both can work via the Internet.
But in our article, under the term “remote work” I will talk specifically about a hired employee who works for a specific company on a permanent basis, but remotely. And under the term “freelancer” – about a specialist who works for himself, with different projects, but also remotely. Let’s talk about the differences between freelancing and remote work.
Difference #1. Employment
A remote employee, although working outside the office, still remains officially employed. Has all the rights prescribed in the Labor Code. Since the number of remote employees in Russia has increased several times since last year, the government is already considering separate amendments to the Labor Code of the Russian Federation regulating the activities of remote workers.
A freelancer is an individual specialist who works for themselves and does not have a permanent place of work. They work on a project-by-project basis. Freelancers have long been unprotected from the point of view of the law and worked with customers ” on their word of honor “. The only exceptions were those registered as individual entrepreneurs and formalizing official contractual relations with clients. But there were few of them.
Then freelance exchanges took up their protection, introducing a system of secure transactions, thanks to which both customers began to cheat freelancers less often, and freelancers – customers.
And from July 1, 2017, the status of “self-employed” or “professional income tax payer” was officially established. Specialists from various fields become self-employed. This status helps them conclude contracts with clients, including legal entities. This has significantly expanded the working opportunities of freelancers.
Difference #2. Stability of earnings
A remote employee is officially employed, which means he or she receives a regular salary according to the employment contract. Often, the salary does not depend on the volume of completed tasks – unless bonuses are provided, for example, for exceeding the plan.
A freelancer does not officially have a stable income. Today he has clients, and tomorrow some of them may leave. Therefore, a freelancer is constantly busy looking for them. Receives payment for the amount of work performed. In some ways, it is similar to entrepreneurship – as you work, so you earn.
Difference #3. Schedule
An employee working remotely, just like his office colleague, in most cases works 8 hours a day and has official days off. A freelancer most often has an irregular work schedule. But he is free to choose when to work and when to rest.
Difference #4. Vacation
A remote employee who works on staff has the right to annual paid leave and holidays. A freelancer can also rest on weekends and holidays and go on vacation, but no one pays for them. Let’s remember the principle – as you work, so you earn . That is, if you don’t work, then you don’t earn.
Difference #5: Colleagues and Team
Often a freelancer works alone. For example, if a designer in an advertising agency has: an account manager who takes on communication with clients; the head of the department who distributes the workload and sets tasks; a team with which you can brainstorm on the topic of the task at hand; and so on.
A freelancer is his own account manager, leader, team leader, client search manager, and many other things.
A remote worker, even though he doesn’t sit in an office, still has a team, while a freelancer doesn’t.
Difference #6: Choosing a Job
One of the most striking differences between freelancing and remote work is that the freelancer chooses who to collaborate with and what project to take on.
A remote worker doesn’t have such a choice. He works with the projects and tasks that were handed down to him from above.
Difference #7. Management
I would like to say something about management separately. There is a type of people who do not like to work “under someone”. They can work for hire, but they are not comfortable. For such people, freelancing becomes a salvation, and sometimes a step to their own full-fledged business.
A hired remote employee has a management that must be taken into account and whose instructions must be followed. But it is worth recognizing that many people are more comfortable working in a system with colleagues, subordinates and managers.
Difference #8. Calls, meetings and planning sessions
I have already said that a remote employee has colleagues and a team. Along with them, there is a corporate culture with meetings, calls, morning planning sessions that take place online.
A freelancer doesn’t have them. Except for rare calls with clients and general chats in messengers. And for many, the absence of such corporate elements is a big plus of freelancing.
Difference #9. Social package
As I have already said, a remote employee is officially registered. The employer pays taxes for him and makes contributions to the Pension Fund. In case of illness, the employee is entitled to official paid sick leave. And many companies have their own bonuses for the team – for example, in the form of voluntary health insurance or payment for fitness.
A freelancer doesn’t have all of this. He takes care of everything himself . But with a good level of income, a freelancer is able to provide himself with both fitness and paid medical services.
As for the pension, on the one hand, he can make deductions to the Pension Fund for himself (for the self-employed – optional, for individual entrepreneurs – mandatory), and on the other hand, he can provide himself with a pension with the help of competent money management and various types of investments.
Difference #10. Loans and Mortgages
Another important difference between freelancing and remote work is the ability to get various types of loans . Small loans may not be a problem. But if you decide to buy a car or take out a mortgage, you may be asked to confirm your income. It will be easier for a hired remote employee to do this.
But it is worth mentioning that banks are not standing still and have programs in their portfolio that allow you to take out large loans without proof of income. Yes, and mortgages too.
Conclusion
Today, specialists in many professions can work remotely or freelance. These include IT professionals, sales managers, business assistants, marketers, and many others.
Both remote workers and freelancers can be protected by law if they are officially employed or registered as individual entrepreneurs or self-employed. The government is constantly working to regulate both types of employment.
But the main difference between remote work and freelancing is still the type of employment: permanent for remote workers and project-based for freelancers.