Labour Hire Agreement for India

Labour Hire Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions for the provision of contract workers by a labour hire company to a client organization. The document ensures compliance with Indian labour laws, particularly the Contract Labour (Regulation and Abolition) Act, 1970, and addresses key aspects including worker management, statutory benefits, workplace safety, payment terms, and liability allocation. It provides a framework for managing the triangular relationship between the labour hire company, client, and workers while ensuring proper risk management and regulatory compliance.

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What is a Labour Hire Agreement?

This Labour Hire Agreement is essential for businesses operating in India that need to engage workers through a third-party labour hire provider. It is designed to comply with Indian labour laws, particularly the Contract Labour (Regulation and Abolition) Act, 1970, and related regulations. The agreement is typically used when a company requires flexible workforce solutions, specialized skills on a temporary basis, or wants to outsource certain labor-intensive operations. It covers critical aspects such as statutory compliance, worker welfare, workplace safety, payment terms, and risk allocation. The document is particularly relevant in the post-COVID environment where workforce flexibility and compliance with evolving labor regulations have become increasingly important.

What sections should be included in a Labour Hire Agreement?

1. Parties: Identifies the labour hire company and the client organization

2. Background: Sets out the context of the agreement, including the client's need for workers and the labour hire company's business

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Details the labour hire services to be provided, including types of workers and roles

5. Term and Termination: Specifies the duration of the agreement and termination provisions

6. Labour Hire Company Obligations: Details the obligations including worker screening, compliance with laws, and maintaining licenses

7. Client Obligations: Specifies client responsibilities including workplace safety, supervision, and cooperation

8. Worker Management: Covers worker placement, replacement, performance management, and attendance

9. Fees and Payment Terms: Details service charges, payment schedule, and invoice procedures

10. Statutory Compliance: Addresses compliance with Indian labour laws, including minimum wages and social security

11. Insurance and Indemnity: Specifies insurance requirements and indemnification provisions

12. Confidentiality: Protects confidential information of all parties

13. Dispute Resolution: Sets out process for resolving disputes

14. General Provisions: Includes standard boilerplate clauses like notices, amendments, and governing law

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

1. Non-Solicitation: Prevents direct hiring of workers by the client, used when protecting the labour hire company's workforce is crucial

2. Intellectual Property: Addresses IP rights in worker-created materials, used when workers may create IP in their roles

3. Performance Standards: Sets KPIs and service levels, used for complex or high-value agreements

4. Transition Services: Covers handover procedures, used when continuity of service is critical

5. Force Majeure: Addresses unforeseen circumstances, particularly relevant post-COVID

6. Data Protection: Addresses personal data handling, used when significant worker data is processed

7. Foreign Workers: Additional provisions for foreign workers, used when employing non-Indian workers

What schedules should be included in a Labour Hire Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of charges, markup percentages, and payment terms

2. Schedule 2 - Scope of Work: Detailed description of worker roles, responsibilities, and qualifications

3. Schedule 3 - Service Levels: Performance metrics and service standards

4. Schedule 4 - Statutory Benefits: List of mandatory benefits under Indian law

5. Schedule 5 - Required Certifications: List of necessary licenses and certifications

6. Appendix A - Worker Code of Conduct: Standards of behavior and workplace rules

7. Appendix B - Safety Procedures: Workplace safety protocols and requirements

8. Appendix C - Timesheet Template: Standard format for recording worker hours

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

India

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Construction

Information Technology

Logistics and Warehousing

Retail

Healthcare

Hospitality

Mining

Agriculture

Industrial Processing

Infrastructure Development

Facility Management

Event Management

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Project Management

Finance

Risk Management

Health Safety Environment

Administration

Industrial Relations

Relevant Roles

HR Manager

Legal Counsel

Procurement Manager

Operations Manager

Compliance Officer

Project Manager

Site Supervisor

Facility Manager

Contract Administrator

Risk Manager

Chief Financial Officer

General Manager

Labor Relations Manager

HSE 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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