Labour Hire Agreement for Canada

Labour Hire Agreement Template for Canada

A comprehensive agreement governed by Canadian federal and provincial laws that establishes the terms and conditions under which a labor hire company provides temporary workers to a client company. The agreement covers essential aspects including worker engagement processes, workplace safety requirements, payment terms, compliance obligations, and risk allocation between parties. It ensures adherence to Canadian employment standards while providing flexibility in workforce management and clear guidelines for all parties involved in the labor hire arrangement.

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What is a Labour Hire Agreement?

The Labour Hire Agreement is essential for businesses operating in Canada that require flexible workforce solutions through third-party providers. This agreement type is commonly used when companies need to supplement their permanent workforce with temporary staff, manage seasonal fluctuations, or access specialized skills on a project basis. The document addresses critical aspects of the three-way relationship between the labor hire provider, client company, and assigned workers, ensuring compliance with Canadian federal and provincial employment legislation. It includes comprehensive provisions for worker management, safety obligations, payment structures, and risk allocation, while protecting all parties' interests and maintaining clear accountability in the labor hire arrangement.

What sections should be included in a Labour Hire Agreement?

1. Parties: Identification of the labor hire company (provider) and the client company (hirer)

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of labor hire services to be provided

5. Term and Termination: Duration of agreement and conditions for termination

6. Provider Obligations: Key responsibilities of the labor hire company including worker screening, compliance, and management

7. Client Obligations: Responsibilities of the client company including workplace safety, supervision, and cooperation

8. Worker Engagement Process: Procedures for requesting, selecting, and engaging workers

9. Fees and Payment Terms: Pricing structure, payment terms, and invoicing procedures

10. Workplace Health and Safety: Health and safety obligations of both parties

11. Insurance and Liability: Insurance requirements and allocation of liability between parties

12. Confidentiality: Protection of confidential information and trade secrets

13. Compliance with Laws: Obligations to comply with relevant employment and labor laws

14. Dispute Resolution: Process for resolving disputes between parties

15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Labour Hire Agreement?

1. Non-Solicitation: Restrictions on hiring workers directly, used when the provider wants to protect their workforce

2. Intellectual Property: IP ownership and rights, included when workers may create IP during assignments

3. Performance Standards: Specific KPIs and service levels, used for high-volume or critical placements

4. Training Requirements: Specific training obligations, included when specialized skills or certifications are needed

5. Data Protection: Additional privacy and data handling requirements, important when dealing with sensitive information

6. International Labor: Special provisions for cross-border placements, used when providing international labor

7. Union Relations: Provisions dealing with unionized workplaces, included when relevant to the client's workplace

What schedules should be included in a Labour Hire Agreement?

1. Schedule A - Fee Schedule: Detailed breakdown of rates, margins, and additional charges

2. Schedule B - Service Specifications: Detailed description of services, worker qualifications, and performance requirements

3. Schedule C - Workplace Policies: Client's relevant workplace policies that workers must comply with

4. Schedule D - Required Certifications: List of mandatory certifications or qualifications for workers

5. Schedule E - Insurance Requirements: Detailed insurance requirements and coverage limits

6. Appendix 1 - Worker Request Form: Standard form for requesting workers

7. Appendix 2 - Timesheet Template: Standard timesheet format for recording hours worked

8. Appendix 3 - Incident Report Form: Template for reporting workplace incidents or injuries

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Manufacturing

Mining

Agriculture

Hospitality

Healthcare

Information Technology

Warehouse and Logistics

Retail

Professional Services

Energy and Resources

Transportation

Relevant Teams

Human Resources

Legal

Procurement

Operations

Finance

Risk and Compliance

Health and Safety

Project Management

Contract Administration

Talent Acquisition

Relevant Roles

Human Resources Manager

Procurement Manager

Legal Counsel

Operations Manager

Workforce Planning Manager

Risk Manager

Compliance Officer

Contract Administrator

Project Manager

Finance Manager

Health and Safety Officer

Talent Acquisition Manager

Business Unit Manager

Site Supervisor

General Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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