Employee Leasing Contract Template for England and Wales

An Employee Leasing Contract is a legally binding agreement governed by the laws of England and Wales, which establishes the terms and conditions under which one company (the leasing company) provides its employees to work for another company (the host company). The agreement covers essential aspects including employment responsibilities, payment terms, duration of service, liability allocation, and compliance with UK employment laws including the Employment Rights Act 1996 and Agency Workers Regulations 2010.

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What is a Employee Leasing Contract?

The Employee Leasing Contract serves as a comprehensive framework for organizations seeking flexible workforce solutions in England and Wales. This agreement is particularly relevant when companies need to quickly scale their workforce, access specialized skills, or manage temporary staffing requirements without direct employment obligations. The contract addresses crucial elements such as employment status, tax implications, insurance requirements, and compliance with UK employment legislation. It provides clear guidelines on the rights and responsibilities of all parties involved, ensuring proper protection for the leasing company, host company, and leased employees.

What sections should be included in a Employee Leasing Contract?

1. Parties: Identifies the leasing company, host company, and any other relevant parties

2. Background: Context of the agreement and basic premises of the arrangement

3. Definitions: Key terms used throughout the agreement including references to relevant legislation

4. Scope of Services: Details of the employee leasing arrangement and services provided

5. Term and Termination: Duration of the agreement and termination provisions

6. Payment Terms: Financial arrangements, fees, and payment schedule

7. Obligations of the Parties: Responsibilities of each party including compliance with employment laws

8. Employment Status: Clarification of employment relationships and responsibilities

9. Compliance with Laws: Specific provisions regarding compliance with employment, health and safety, and data protection laws

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

11. Confidentiality: Provisions regarding confidential information and data protection

12. Dispute Resolution: Procedures for resolving disputes between parties

13. General Provisions: Standard boilerplate clauses including governing law and jurisdiction

What sections are optional to include in a Employee Leasing Contract?

1. Industry-Specific Compliance: Additional requirements for specific regulated sectors such as financial services or healthcare

2. International Provisions: Cross-border considerations and compliance requirements when employees are leased across jurisdictions

3. Intellectual Property Rights: IP ownership and protection provisions when employees may create IP during their assignment

4. Non-Competition: Restrictions on competition and solicitation where required by the business context

5. Force Majeure: Provisions for handling unforeseen circumstances that prevent performance

What schedules should be included in a Employee Leasing Contract?

1. Schedule 1: Employee Details: List of leased employees, their roles, and specific terms of deployment

2. Schedule 2: Service Fees: Detailed breakdown of costs and charging structure

3. Schedule 3: Service Level Agreement: Performance metrics and service standards

4. Schedule 4: Health and Safety Procedures: Relevant health and safety protocols and responsibilities

5. Schedule 5: Data Protection Procedures: GDPR and data protection compliance measures

6. Schedule 6: Required Forms and Documentation: Templates and forms for administrative purposes including timesheets and reporting

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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Lease Agreement

Cost

Free to use

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