Labour Hire Contract for Nigeria

Labour Hire Contract Template for Nigeria

A comprehensive agreement governed by Nigerian law that establishes the terms and conditions for the provision of temporary workers through a labour hire arrangement. This document regulates the three-way relationship between the labour hire company, the host employer, and the workers, ensuring compliance with Nigerian labour laws including the Labour Act and related regulations. It covers essential aspects such as worker engagement processes, payment terms, workplace safety requirements, statutory compliance, and risk allocation between parties, while protecting workers' rights under Nigerian employment legislation.

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What is a Labour Hire Contract?

The Labour Hire Contract is essential for businesses operating in Nigeria that require flexible workforce solutions while ensuring compliance with local employment laws. This document is particularly relevant when a company needs to engage temporary workers through a third-party labour hire provider rather than employing them directly. The contract addresses key requirements under Nigerian legislation, including the Labour Act, Employees Compensation Act, and various state-specific regulations. It establishes clear guidelines for worker engagement, management, and protection, while defining the responsibilities of both the labour hire company and the host employer. The agreement is structured to protect all parties' interests while ensuring operational efficiency and regulatory compliance in the Nigerian business environment.

What sections should be included in a Labour Hire Contract?

1. Parties: Identifies the three key parties: the labour hire company (provider), the host employer (client), and reference to the workers to be supplied

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

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

4. Scope of Services: Details the labour hire services to be provided, including worker recruitment, management, and supervision responsibilities

5. Term: Specifies the duration of the agreement and any renewal provisions

6. Worker Engagement Process: Outlines the process for requesting workers, acceptance procedures, and assignment confirmations

7. Fees and Payment Terms: Specifies labour hire rates, payment terms, invoicing procedures, and any rate review mechanisms

8. Labour Hire Company Obligations: Details the provider's responsibilities including worker screening, compliance with labour laws, and maintaining required insurances

9. Client Obligations: Specifies the client's responsibilities regarding worker supervision, safety, and workplace conditions

10. Workplace Health and Safety: Outlines health and safety obligations and procedures for both parties

11. Compliance with Laws: Ensures adherence to Nigerian labour laws, including the Labour Act and related regulations

12. Worker Management: Details day-to-day management procedures, attendance, performance monitoring, and issue resolution

13. Confidentiality: Protects confidential information of all parties

14. Termination: Sets out termination rights and procedures

15. General Provisions: Includes standard boilerplate clauses such as notices, governing law, and dispute resolution

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

1. Non-Solicitation: Prevents direct hiring of workers by the client, used when the labour hire company wants to protect its workforce

2. Performance Guarantees: Includes specific KPIs and service levels, used for larger or more complex arrangements

3. Transition Services: Details procedures for transitioning workers at contract end, relevant for long-term or large-scale arrangements

4. Industry-Specific Requirements: Additional provisions for specific industries (e.g., mining, construction, healthcare)

5. International Worker Provisions: Additional clauses for contracts involving international workers

6. Training Requirements: Specific training obligations and cost allocation, used when specialized training is required

7. Union Relations: Procedures for dealing with unionized workers, if applicable

What schedules should be included in a Labour Hire Contract?

1. Schedule 1 - Fee Schedule: Detailed breakdown of labour hire rates, overtime rates, allowances, and any other charges

2. Schedule 2 - Service Specifications: Detailed description of services, worker qualifications, and specific requirements for different worker categories

3. Schedule 3 - Workplace Policies: Key workplace policies that workers must comply with at the client site

4. Schedule 4 - KPIs and Performance Standards: Detailed performance metrics and measurement criteria if applicable

5. Schedule 5 - Insurance Requirements: Details of required insurance coverage and minimum amounts

6. Appendix A - Worker Request Form: Standard form for requesting workers

7. Appendix B - Assignment Confirmation Template: Template for confirming worker assignments

8. Appendix C - Timesheet Template: Standard timesheet 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

Nigeria

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Manufacturing

Oil and Gas

Mining

Agriculture

Logistics

Healthcare

Information Technology

Hospitality

Retail

Industrial Services

Transportation

Warehousing

Energy

Telecommunications

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Risk Management

Industrial Relations

Health and Safety

Contract Administration

Project Management

Recruitment

Employee Relations

Relevant Roles

Human Resources Director

HR Manager

Procurement Manager

Legal Counsel

Operations Manager

Project Manager

Compliance Officer

Workforce Planning Manager

Site Supervisor

Contract Administrator

Risk Manager

Industrial Relations Manager

Recruitment Manager

Employee Relations Manager

Health and Safety 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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