Labour Hire Agreement for Malta

Labour Hire Agreement Template for Malta

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Labour Hire Agreement

"I need a Labour Hire Agreement for my Malta-based construction company to engage temporary workers through a labor hire agency, with special focus on workplace safety requirements and compliance with construction industry regulations, starting from March 2025."

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What is a Labour Hire Agreement?

The Labour Hire Agreement serves as the primary contractual framework for arrangements where businesses in Malta require temporary workforce solutions through a professional labor hire provider. This document is essential when companies need flexible staffing solutions while ensuring compliance with Malta's employment legislation and EU regulations. The agreement covers crucial elements including worker deployment terms, payment structures, workplace safety requirements, and regulatory compliance obligations. It's particularly relevant in the Maltese context where businesses must navigate both local employment laws and EU directives regarding temporary agency work. The Labour Hire Agreement helps protect all parties' interests while ensuring transparent and compliant working arrangements in accordance with Maltese legal requirements.

What sections should be included in a Labour Hire Agreement?

1. Parties: Identifies the labor hire company and the host employer as the contracting parties

2. Background: Sets out the context of the agreement, including the labor hire company's business and the host employer's requirements

3. Definitions: Defines key terms used throughout the agreement, including 'Workers', 'Services', 'Assignment', etc.

4. Services: Details the labor hire services to be provided, including worker supply and management

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

6. Worker Engagement Process: Outlines the process for requesting, selecting, and engaging workers

7. Fees and Payment Terms: Specifies service fees, payment schedules, and invoicing procedures

8. Labor Hire Company Obligations: Details the responsibilities of the labor hire company, including compliance with employment laws

9. Host Employer Obligations: Specifies the host employer's responsibilities regarding workers and workplace conditions

10. Worker Management: Covers supervision, performance management, and dispute resolution procedures

11. Workplace Health and Safety: Details health and safety obligations and procedures

12. Insurance and Liability: Specifies required insurance coverage and allocation of liability

13. Confidentiality: Protects confidential information of all parties

14. Data Protection: Ensures compliance with GDPR and Maltese data protection laws

15. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement

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

1. Cross-Border Provisions: Required when workers may be posted from other EU countries, addressing applicable EU regulations

2. Industry-Specific Compliance: Include when workers are being supplied to regulated industries with specific compliance requirements

3. Intellectual Property: Include when workers may create or have access to intellectual property

4. Non-Solicitation: Optional provisions preventing direct hiring of workers by the host employer

5. Training Requirements: Include when specific training is required and addressing responsibility for training provision

6. Equipment and Tools: Include when there are specific requirements regarding provision of equipment

7. KPIs and Performance Metrics: Include when specific service levels are required to be maintained

8. Transition Services: Include when assistance with transition at the end of the agreement may be required

What schedules should be included in a Labour Hire Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

2. Schedule 2 - Services Description: Detailed specification of the labor hire services to be provided

3. Schedule 3 - Worker Requirements: Specific requirements for workers including qualifications, experience, and certifications

4. Schedule 4 - Workplace Rules and Policies: Host employer's workplace policies applicable to workers

5. Schedule 5 - WHS Procedures: Detailed workplace health and safety procedures and requirements

6. Schedule 6 - Insurance Requirements: Detailed insurance requirements and coverage specifications

7. Schedule 7 - Form of Assignment Schedule: Template for individual worker assignments

8. Appendix A - Reporting Templates: Standard templates for required reports and documentation

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

Construction

Manufacturing

Hospitality

Information Technology

Healthcare

Logistics and Transportation

Financial Services

Retail

Agriculture

Maritime

Gaming and iGaming

Professional Services

Industrial and Warehousing

Tourism

Relevant Teams

Human Resources

Legal

Compliance

Operations

Procurement

Finance

Risk Management

Health and Safety

Industrial Relations

Contract Administration

Project Management Office

Relevant Roles

Human Resources Director

Operations Manager

Legal Counsel

Compliance Officer

Procurement Manager

Project Manager

Workforce Planning Manager

Risk Manager

Finance Manager

Health and Safety Officer

Recruitment Manager

Contract Administrator

Industrial Relations Manager

Business Unit Manager

Chief Operating Officer

HR Business Partner

Industries
Employment and Industrial Relations Act (Chapter 452): Primary legislation governing employment relationships in Malta, covering fundamental employment rights, conditions of employment, and industrial relations
Temporary Agency Workers Regulations (S.L. 452.106): Specific regulations governing temporary work agencies and the rights of temporary workers, including equal treatment provisions
Equal Treatment in Employment Regulations (S.L. 452.95): Ensures non-discrimination in employment arrangements, including for temporary and agency workers
Protection of Wages Regulations (S.L. 452.51): Regulates payment of wages, deductions, and other wage-related matters for all types of workers
General Data Protection Regulation (GDPR) and Data Protection Act (Chapter 586): Governs the processing of personal data of employees and ensures compliance with EU data protection standards
Employment Status National Standard Order (S.L. 452.108): Defines employment status and helps determine the nature of employment relationships
Transfer of Business (Protection of Employment) Regulations (S.L. 452.85): Protects employees' rights in cases where business transfers affect employment arrangements
Working Time Regulations (S.L. 452.87): Regulates working hours, rest periods, and leave entitlements for all workers including agency workers
Posting of Workers in Malta Regulations (S.L. 452.82): Relevant for cross-border labor hire arrangements within the EU
Occupational Health and Safety Authority Act (Chapter 424): Ensures workplace safety and health requirements are met for all workers including temporary and agency workers
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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