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“I have a dentist/doctor/chiropractor/naturopath/RMT/anything appointment”
Yes, if they’re not paying you hourly they can deduct that time. Honesty could work to your advantage if your current freelance client is considering you for a permanent position.
Take the interview. Don’t think twice.
Can you? You might be asking the wrong questions. Of course you can. But if you don’t trust your employer to handle it like a reasonable person, just tell them you have an appt