Labour Hire Agreement for New Zealand

Labour Hire Agreement Template for New Zealand

A comprehensive agreement governed by New Zealand law that establishes the terms and conditions under which a labour hire company provides temporary workers to a host company. The agreement addresses key aspects including worker engagement processes, responsibilities of both parties, health and safety obligations, payment terms, and compliance with New Zealand employment legislation. It includes specific provisions for worker management, performance standards, and risk allocation while ensuring compliance with the Employment Relations Act 2000 and other relevant New Zealand regulations.

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What is a Labour Hire Agreement?

This Labour Hire Agreement is designed for use in New Zealand when a business requires temporary or flexible workforce solutions through a specialized labour hire provider. The document establishes the legal framework for the triangular relationship between the labour hire company, host company, and workers, ensuring compliance with New Zealand employment laws including the Employment Relations Act 2000, Health and Safety at Work Act 2015, and related regulations. It includes comprehensive provisions covering worker engagement, management, health and safety, payment terms, and risk allocation. This agreement is particularly vital in industries with fluctuating workforce needs or specialized skill requirements, providing clarity on responsibilities while protecting the interests of all parties involved.

What sections should be included in a Labour Hire Agreement?

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

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

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Term and Engagement: Specifies the duration of the agreement and the process for engaging workers

5. Services and Scope: Details the labour hire services to be provided and the scope of work

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

7. Fees and Payment Terms: Specifies the fee structure, payment terms, and invoicing procedures

8. Responsibilities of Labour Hire Company: Details the obligations of the labour hire company including worker management and compliance

9. Responsibilities of Host Company: Outlines the host company's obligations regarding worker supervision, safety, and workplace conditions

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

11. Worker Management: Covers performance management, discipline, and replacement of workers

12. Compliance with Laws: Ensures compliance with employment, safety, and other relevant legislation

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

14. Confidentiality: Protects confidential information of all parties

15. Termination: Sets out grounds and process for termination of the agreement

16. General Provisions: Includes standard legal provisions such as notices, assignment, and governing law

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

1. Intellectual Property: Required when workers may create or access intellectual property during their engagement

2. Non-Solicitation: Include when parties wish to prevent direct hiring of workers or poaching of staff

3. KPIs and Performance Standards: Include when specific performance metrics need to be maintained

4. Transition Services: Required when specific provisions are needed for transitioning workers at the start or end of the agreement

5. Industry-Specific Compliance: Include when the work involves regulated industries with specific compliance requirements

6. International Workers: Required when the agreement involves provision of workers from overseas

7. Data Protection: Include when significant personal data processing is involved

8. Business Continuity: Include when workers are involved in critical business functions

9. Dispute Resolution: Include when parties want specific dispute resolution procedures beyond standard court proceedings

What schedules should be included in a Labour Hire Agreement?

1. Schedule 1: Fee Schedule: Detailed breakdown of fees, charge rates, and payment terms

2. Schedule 2: Service Levels: Specific service levels and performance metrics

3. Schedule 3: Worker Categories and Qualifications: Details of different worker categories and required qualifications

4. Schedule 4: Onboarding and Induction Process: Detailed procedures for worker onboarding and induction

5. Schedule 5: Health and Safety Requirements: Specific health and safety procedures and requirements

6. Schedule 6: Reporting Requirements: Templates and requirements for regular reporting

7. Appendix A: Form of Worker Request: Standard form for requesting workers

8. Appendix B: Site Rules and Procedures: Host company's site-specific rules and procedures

9. Appendix C: Insurance Requirements: Detailed insurance requirements and certificates

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

New Zealand

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Manufacturing

Agriculture

Hospitality

Logistics and Warehousing

Mining

Information Technology

Healthcare

Retail

Professional Services

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Health and Safety

Finance

Risk Management

Commercial

Project Management

Relevant Roles

Human Resources Director

HR Manager

Procurement Manager

Operations Manager

Legal Counsel

Compliance Officer

Workforce Planning Manager

Site Manager

Project Manager

Risk Manager

Commercial Manager

Contract Administrator

Talent Acquisition Manager

Health and Safety Manager

Finance Manager

Industries
Employment Relations Act 2000: Primary legislation governing employment relationships in New Zealand, including rights and obligations of employers, employees, and unions. Covers good faith obligations, employment agreements, and dispute resolution.
Health and Safety at Work Act 2015: Establishes workplace health and safety obligations. Particularly relevant for labor hire as both the agency and host company have health and safety duties to workers.
Wages Protection Act 1983: Regulates the payment of wages and salaries, including deductions and payment methods, which is crucial for labor hire arrangements.
Holidays Act 2003: Sets out minimum entitlements for annual leave, public holidays, sick leave, and bereavement leave, which must be accounted for in labor hire arrangements.
Human Rights Act 1993: Prohibits discrimination in employment and ensures equal treatment of workers, applicable to both direct employment and labor hire situations.
Privacy Act 2020: Governs the collection, use, and disclosure of personal information, particularly relevant when sharing worker information between labor hire company and host business.
Fair Trading Act 1986: Ensures fair trading practices and prohibits misleading conduct in trade, relevant for commercial arrangements between labor hire companies and their clients.
Tax Administration Act 1994: Covers tax obligations including PAYE and other employment-related tax matters for workers engaged through labor hire arrangements.
Accident Compensation Act 2001: Establishes the ACC scheme and covers workplace injury compensation, which must be considered in labor hire arrangements.
Contract and Commercial Law Act 2017: Provides the general framework for contract law in New Zealand, relevant for the commercial aspects of the labor hire agreement.
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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