Employee Lease Agreement for the United Kingdom

Employee Lease Agreement Template for England and Wales

An Employee Lease Agreement is a legal contract governed by English and Welsh law that facilitates the temporary transfer of employee services between companies while maintaining the original employment relationship. This agreement outlines the terms under which employees are leased, including duration, compensation, responsibilities, and compliance with UK employment laws. It addresses crucial aspects such as health and safety, data protection, and professional liability while ensuring adherence to Agency Workers Regulations and other relevant UK legislation.

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What is a Employee Lease Agreement?

The Employee Lease Agreement is designed for situations where companies need to temporarily share human resources while maintaining clear legal and operational boundaries. This document, compliant with English and Welsh law, is particularly valuable during project collaborations, specialty skill requirements, or temporary staff augmentation needs. The agreement covers essential elements including payment terms, liability allocation, employee rights protection, and regulatory compliance with UK employment laws. It's commonly used when organizations need specialized expertise without permanent hiring or when managing group-wide resource allocation.

What sections should be included in a Employee Lease Agreement?

1. Parties: Identifies the lessor company, lessee company, and referenced employee(s)

2. Background: Explains the context and purpose of the employee lease arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Term and Duration: Specifies the length of the lease arrangement and any renewal provisions

5. Services and Duties: Details the work to be performed by the leased employee(s)

6. Payment Terms: Outlines fees, payment schedule, and reimbursement arrangements

7. Employment Status: Clarifies continued employment relationship with lessor

8. Supervision and Control: Establishes management structure and reporting lines

9. Employee Benefits and Entitlements: Specifies how benefits, leave, and other entitlements will be handled

10. Confidentiality: Protects confidential information of all parties

11. Termination: Sets out circumstances and procedures for ending the agreement

12. Governing Law and Jurisdiction: Specifies applicable law and courts for dispute resolution

What sections are optional to include in a Employee Lease Agreement?

1. Intellectual Property Rights: Addresses ownership of work product and IP created during the lease period

2. Non-Competition: Restricts competitive activities during and after the lease period

3. International Assignment Provisions: Addresses cross-border considerations for international employee leasing

4. Data Protection: Specific provisions for handling personal data under GDPR and Data Protection Act

5. Insurance Requirements: Specifies additional insurance coverage requirements

6. Force Majeure: Provisions for handling unforeseen circumstances preventing performance

What schedules should be included in a Employee Lease Agreement?

1. Schedule 1 - Employee Details: Lists specific employees, their roles, qualifications, and experience

2. Schedule 2 - Fee Schedule: Detailed breakdown of charges, payment terms, and reimbursable expenses

3. Schedule 3 - Services Description: Detailed scope of services to be provided by the leased employee(s)

4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria

5. Appendix A - Reporting Requirements: Details of required reports, their frequency, and format

6. Appendix B - Health and Safety Procedures: Specific health and safety requirements and procedures

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

England and Wales

Publisher

Genie AI

Document Type

Lease Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Employment Rights Act 1996: Primary legislation governing employment rights, including contracts, unfair dismissal, redundancy rights, and basic employment protections

Agency Workers Regulations 2010: Regulations ensuring temporary workers receive equal treatment regarding basic working conditions after 12 weeks in the same role

TUPE Regulations 2006: Protects employees' rights when the business or service they work for transfers to a new employer, including outsourcing situations

Working Time Regulations 1998: Controls working hours, rest breaks, and annual leave entitlements for workers in the UK

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety in Great Britain, setting out employers' responsibilities

Management of Health and Safety at Work Regulations 1999: Requires employers to assess and manage risks to their employees and others arising from work activities

Equality Act 2010: Protects against workplace discrimination and promotes equality across protected characteristics

UK General Data Protection Regulation: Post-Brexit data protection regulation governing how personal information must be handled and processed

Data Protection Act 2018: The UK's implementation of data protection laws, working alongside UK GDPR

National Minimum Wage Act 1998: Sets out the minimum pay per hour workers are entitled to by law

Pensions Act 2008: Covers automatic enrollment and employer pension obligations

Income Tax (Earnings and Pensions) Act 2003: Governs the taxation of employment income and pension contributions

Social Security Contributions and Benefits Act 1992: Regulates national insurance contributions and statutory benefits

IR35 Legislation: Tax legislation affecting contractors and determining employment status for tax purposes

Modern Slavery Act 2015: Requires businesses to ensure no modern slavery exists in their operations and supply chains

Common Law Duty of Care: Legal obligation requiring employers to take reasonable care to avoid causing harm to employees

Common Law Confidentiality: Legal principles protecting confidential information and trade secrets in employment relationships

Vicarious Liability Principles: Common law doctrine making employers liable for wrongful acts of employees during employment

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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