Labour Hire Contract for India

Labour Hire Contract Template for India

A comprehensive legal agreement governed by Indian law that establishes and regulates the triangular employment relationship between a labor hire company (provider), contract workers, and host employers. This document ensures compliance with the Contract Labour (Regulation and Abolition) Act, 1970, and other relevant Indian labor laws while clearly defining the rights, obligations, and responsibilities of all parties involved. It covers essential aspects including payment terms, working conditions, statutory benefits, supervision arrangements, and compliance requirements specific to the Indian jurisdiction.

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What is a Labour Hire Contract?

This Labour Hire Contract is designed for use in India where contract labor arrangements are governed by strict regulatory requirements, particularly the Contract Labour (Regulation and Abolition) Act, 1970. The document is essential when a company (host employer) wishes to engage workers through a labor hire company rather than employing them directly. It establishes clear terms for all three parties involved - the labor hire company, the contract worker, and the host employer - while ensuring compliance with Indian labor laws regarding wages, working conditions, and statutory benefits. The contract addresses crucial aspects such as supervision responsibilities, workplace safety, statutory compliance, and dispute resolution mechanisms, making it suitable for various industries operating under Indian jurisdiction. This document should be used whenever engaging contract workers through a labor hire arrangement to ensure legal compliance and clear delineation of rights and responsibilities.

What sections should be included in a Labour Hire Contract?

1. Parties: Identifies the three key parties: the labor hire company (provider), the worker, and the host employer

2. Background: Explains the context of the agreement and the intention to enter into a labor hire arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Details the nature of work to be performed by the worker at the host employer's premises

5. Term of Agreement: Specifies the duration of the contract and renewal terms

6. Payment Terms: Outlines wages, payment frequency, and method of payment

7. Working Hours and Conditions: Specifies work hours, breaks, leave entitlements, and workplace conditions

8. Statutory Compliance: Details compliance with labor laws, including PF, ESI, and other mandatory benefits

9. Supervision and Control: Clarifies reporting structure and day-to-day management responsibilities

10. Health and Safety: Outlines workplace safety requirements and responsibilities

11. Confidentiality: Protects confidential information of both the provider and host employer

12. Termination: Specifies grounds and process for contract termination

13. Dispute Resolution: Establishes process for resolving disputes between parties

14. Governing Law: Confirms Indian law as governing law and jurisdiction

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

1. Non-Compete: Restricts worker from joining competitor organizations (use when dealing with skilled/specialized workers)

2. Training Requirements: Specifies mandatory training programs (use when specific certifications or training are required)

3. Performance Standards: Establishes KPIs and performance evaluation criteria (use for specialized roles)

4. Insurance: Additional insurance requirements beyond statutory requirements (use for high-risk work)

5. Intellectual Property: Addresses ownership of IP created during employment (use for technical/creative roles)

6. Mobility Clause: Allows for worker deployment at different locations (use when multiple work locations are possible)

7. Benefits: Additional benefits beyond statutory requirements (use when offering extra incentives)

What schedules should be included in a Labour Hire Contract?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and required qualifications

2. Schedule 2 - Payment Structure: Detailed breakdown of wages, allowances, and deductions

3. Schedule 3 - Working Hours and Shifts: Detailed work schedule including shift patterns if applicable

4. Schedule 4 - Statutory Benefits: Details of all statutory benefits and calculation methods

5. Schedule 5 - Code of Conduct: Workplace behavior guidelines and disciplinary procedures

6. Appendix A - Safety Procedures: Specific safety protocols and emergency procedures

7. Appendix B - Required Documentation: List of mandatory documents to be maintained for compliance

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

Facility Management

Industrial Services

Mining

Agriculture

Retail

Hospitality

Healthcare

Infrastructure

Relevant Teams

Human Resources

Legal

Compliance

Operations

Administration

Risk Management

Procurement

Industrial Relations

Health and Safety

Finance

Relevant Roles

HR Manager

Legal Counsel

Compliance Officer

Operations Manager

Contract Worker

Site Supervisor

Project Manager

Labor Relations Manager

Recruitment Manager

Facility Manager

Production Manager

Safety Officer

Administrative Officer

Contract Administrator

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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