Employee Outsourcing Agreement for Malta

Employee Outsourcing Agreement Template for Malta

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Employee Outsourcing Agreement

"I need an Employee Outsourcing Agreement governed by Maltese law for my IT consulting company to engage a staffing agency to provide 50 software developers, with service commencement planned for March 2025 and specific provisions for data protection and intellectual property rights."

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What is a Employee Outsourcing Agreement?

The Employee Outsourcing Agreement is essential for businesses operating in Malta that wish to engage external workforce solutions while maintaining compliance with local regulations. This document is typically used when a company seeks to outsource its staffing needs to a professional employer organization or staffing agency. The agreement ensures adherence to Malta's Employment and Industrial Relations Act, data protection laws, and other relevant legislation while clearly defining the three-way relationship between the client company, the outsourcing provider, and the outsourced employees. It addresses crucial aspects such as employment terms, service provider responsibilities, client obligations, data protection, and risk allocation, making it particularly valuable for companies expanding their operations or seeking flexible workforce solutions in Malta.

What sections should be included in a Employee Outsourcing Agreement?

1. Parties: Identification of the Client company and the Outsourcing Service Provider

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 the outsourcing services, including employee provision and management

5. Service Provider Obligations: Key responsibilities of the outsourcing provider, including recruitment, HR management, and compliance

6. Client Obligations: Responsibilities of the client company, including workplace provisions and cooperation

7. Employment Terms: Terms governing the employment relationship, ensuring compliance with Maltese labor laws

8. Data Protection and Confidentiality: Obligations regarding personal data processing and confidential information handling

9. Fees and Payment Terms: Financial arrangements, including service fees, payment schedule, and invoicing procedures

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Liability and Indemnification: Risk allocation between parties and indemnification obligations

12. Insurance: Required insurance coverage for both parties

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

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

1. Service Level Agreement: Detailed performance metrics and service standards, recommended for larger-scale outsourcing arrangements

2. Transition Services: Procedures for transitioning employees at the start and end of the agreement, useful for complex implementations

3. Intellectual Property Rights: IP ownership and licenses, necessary when outsourced employees will be creating or handling IP

4. Non-Competition: Restrictions on competitive activities, relevant when sharing sensitive business information

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

6. Anti-Bribery and Corruption: Compliance with anti-corruption laws, recommended for international arrangements

7. Business Continuity: Disaster recovery and business continuity requirements, important for critical service provisions

What schedules should be included in a Employee Outsourcing Agreement?

1. Schedule 1 - Service Description: Detailed specification of outsourcing services and employee roles

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

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

4. Schedule 4 - Data Processing Agreement: GDPR-compliant data processing terms and procedures

5. Schedule 5 - Employee Handbook: Key policies and procedures applicable to outsourced employees

6. Schedule 6 - HR Procedures: Detailed processes for employee management and HR services

7. Appendix A - Required Insurance Coverage: Specification of insurance types and coverage amounts

8. Appendix B - Key Personnel: List of key contact persons and their roles from both parties

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Financial Services

Professional Services

Healthcare

Hospitality

Gaming and iGaming

Telecommunications

Construction

Retail

Maritime Services

Business Process Outsourcing

Customer Service

Relevant Teams

Human Resources

Legal

Procurement

Operations

Finance

Compliance

Risk Management

Business Development

Talent Acquisition

Contract Management

Relevant Roles

HR Director

Legal Counsel

Procurement Manager

Operations Director

Chief Financial Officer

HR Manager

Compliance Officer

General Counsel

Business Development Manager

Chief Operating Officer

Talent Acquisition Manager

Contract Manager

Risk Manager

Human Resources Business Partner

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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