Labour Hire Agreement for South Africa

Labour Hire Agreement Template for South Africa

A comprehensive agreement governed by South African law that establishes the terms and conditions under which a labor hire company provides temporary workers to a client company. The agreement addresses key aspects including worker provision, management responsibilities, payment terms, compliance with labor laws, workplace safety requirements, and risk allocation. It incorporates specific provisions to comply with South African labor legislation, including the Labour Relations Act, Basic Conditions of Employment Act, and Employment Equity Act, while clearly defining the triangular relationship between the labor hire company, client, and workers.

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What is a Labour Hire Agreement?

The Labour Hire Agreement is essential for businesses in South Africa that engage temporary workers through labor hire companies (also known as temporary employment services providers). This document is particularly important given South Africa's stringent labor laws and regulations governing temporary employment relationships. The agreement establishes the framework for worker provision, including recruitment, management, payment terms, and compliance requirements. It specifically addresses the obligations of both the labor hire company and the client, ensuring alignment with key legislation such as the Labour Relations Act and Basic Conditions of Employment Act. The document is crucial for risk management and clear delineation of responsibilities in temporary employment arrangements, particularly in light of recent regulatory developments in South African labor law regarding temporary employment services.

What sections should be included in a Labour Hire Agreement?

1. Parties: Identification of the Labor Hire Company and the Client Company, including registration details and addresses

2. Background: Context of the agreement, including the Labor Hire Company's business and Client's need for temporary workers

3. Definitions: Definitions of key terms including 'Workers', 'Services', 'Charges', 'Assignment', etc.

4. Scope of Services: Detailed description of labor hire services, including worker provision and management responsibilities

5. Term and Termination: Duration of agreement, renewal terms, and termination provisions

6. Labor Hire Company Obligations: Core responsibilities including recruitment, vetting, payroll, statutory compliance

7. Client Obligations: Responsibilities regarding worker supervision, workplace safety, and cooperation

8. Charges and Payment Terms: Fee structure, invoicing, payment terms, and rate adjustment mechanisms

9. Workers Status and Management: Employment relationship clarification, worker replacement, and performance management

10. Compliance with Laws: Commitment to comply with relevant labor laws and regulations

11. Insurance and Indemnity: Insurance requirements and mutual indemnification provisions

12. Confidentiality: Protection of confidential information of all parties

13. Dispute Resolution: Process for resolving disputes between parties

14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

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

1. Transformation and Employment Equity: Specific provisions for meeting B-BBEE requirements and employment equity targets, include when client requires specific transformation commitments

2. Specialized Training: Details of any specialized training to be provided to workers, include when specific skills development is part of the arrangement

3. Performance Metrics: KPIs and service level agreements, include when specific performance measurements are required

4. Transition Services: Provisions for transitioning workers to permanent employment, include when there's possibility of permanent placement

5. International Deployment: Additional provisions for cross-border worker deployment, include when workers may be deployed internationally

6. Intellectual Property: IP rights and protection, include when workers will be involved in creative or technical work

7. Non-Solicitation: Restrictions on hiring each other's employees, include when protecting against staff poaching is important

8. Data Protection: Detailed POPIA compliance measures, include when extensive personal data processing is involved

What schedules should be included in a Labour Hire Agreement?

1. Schedule 1: Fee Schedule: Detailed breakdown of labor hire rates, markups, and additional charges

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

3. Schedule 3: Workplace Policies: Client's relevant workplace policies applicable to assigned workers

4. Schedule 4: Compliance Checklist: List of required compliance documents and certifications

5. Schedule 5: Key Personnel: Contact details of key personnel from both parties responsible for agreement management

6. Appendix A: Worker Assignment Template: Standard template for documenting individual worker assignments

7. Appendix B: Health and Safety Requirements: Specific health and safety requirements and procedures

8. Appendix C: Performance Review Framework: Templates and procedures for worker performance evaluation

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

South Africa

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Mining

Construction

Agriculture

Retail

Logistics and Transportation

Information Technology

Healthcare

Hospitality

Financial Services

Professional Services

Industrial

Engineering

Telecommunications

Energy and Utilities

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Risk Management

Employment Relations

Talent Acquisition

Contract Management

Industrial Relations

Project Management

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Procurement Manager

Operations Director

Compliance Officer

Risk Manager

Employment Relations Manager

Talent Acquisition Manager

Contract Manager

Chief Operating Officer

Workforce Planning Manager

Industrial Relations Manager

Business Unit Manager

Project 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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