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If you run a labour hire business, you're playing an important role in matching the right workers and employers. It's essential that you are legally protected from disputes by using a written labour hire agreement with each client.
This guide details exactly where you can find legal templates online to help you get started, and covers what you need to know about drafting up an agreement to use.
What's in this guide?
- How labour hire agreements work
- Find a labour hire agreement template
- More on where to find labour hire agreement templates online
- When should I use a labour hire agreement?
- What does a labour hire agreement include?
- What does a labour hire agreement not include?
- How do I write this type of agreement?
- How does a labour hire agreement differ from an independent contractor agreement?
- How effective is a labour hire agreement?
- Do I need to go through a lawyer?
How labour hire agreements work
A labour hire company recruits skilled and unskilled supplementary workers on behalf of an employer, often for temporary work.
Essentially, a labour hire agreement details the relationship between the hiring agency and the employer. It can set out the services the hiring company will provide and the terms of the agreement with the employer. It'll also ensure that the workers are treated well, protected and insured by setting out the terms under which they are placed with the employer.
Find a labour hire agreement template
Download this template at Lawpath
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More on where to find labour hire agreement templates online
Using a Labour Hire Agreement template can save you time and hard work in setting out the terms of your agency's relationship with clients.
Here are some websites where you can find document templates to download and customise:
- Lawpath. Lawpath is an online legal resource for small businesses and entrepreneurs. Users can view a free labour hire agreement template on the website, but must sign up for an account to customise and download the document.
- pdfFiller. An online tool for businesses to complete a document directly from their browser and add a legally binding electronic signature. pdfFiller offers a free customisable labour hire agreement template.
- RP Emery. A legal publishing service that provides a variety of legal kits, RP Emery provides a labour hire agreement template and a placement agreement template to download for $249.
- Sample Templates. An online library of document templates for business contracts, letters, forms and resumes. The website includes six sample templates for different types of labour contracts, including a labour supply service agreement that you can customise to your requirements.
When should I use a labour hire agreement?
You should sign a written labour hire agreement each time you start working with a new employer. This will ensure that the terms of the relationship are clearly defined from the start and the client understands what to expect from your labour hire service and the workers placed with them.
What does a labour hire agreement include?
The specifics of the agreement will vary depending on the industry, role and employer, but they should all cover a few important areas, such as:
- Relationship between the hiring agency and the employer.
- Provision of workers, including the type of employees, how far in advance they should be requested, proposed employment period and retention of employees.
- Fees the employer will pay to the hiring agency, including retainers or commission on hiring, and how the fees will be invoiced.
- Responsibility for workers insurance, and whether the employer or agency will provide coverage.
- The use of timesheets to record work and hourly employee rates.
- Responsibility for payment of employment taxes.
- Workplace health and safety to comply with legal requirements and provide a safe working environment.
- Non-solicitation clause if you do not want the employer to engage the agency's workers directly for a certain period.
- Details of aspects of the relationship and business subject to confidentiality.
- Terms for the termination of the agreement.
- Details of the dispute resolution process.
What does a labour hire agreement not include?
In drafting a Labour Agreement, you should avoid using vague terminology, misinformation and references to outdated laws. If there is a dispute down the line, a court judge is more likely to uphold a detailed document that is written in clear terms that are simple for the client to understand.
How do I write this type of agreement?
You should ensure that your labour hire agreement is written in professional, clear and concise terms that cover the responsibilities of your agency as well as the employer. As the document needs to be several pages long to include all of the required details, you should break up the text into sections with subheadings and bullet points to make it easy to refer to and find information with ease.
It's also important to review the wording of the agreement periodically, to make sure that it's still relevant to the services the agency provides and the relationship with each client.
How does a labour hire agreement differ from an independent contractor agreement?
Labour Hire Agreements are used when a company hires a worker through a labour hire agency and details the service the agency will provide to the employer. An Independent Contractor Agreement is normally used when a worker is hired directly by the employer and sets out the terms of the employment.
How effective is a labour hire agreement?
While there is no legal requirement to have a labour hire agreement, it's beneficial to the employer, worker and hiring agency to have a document that effectively communicates the rights and responsibilities of the agency and the employer. A written and signed document can provide effective protection should a dispute arise. It also could potentially save you money and a heap of hassle in the future.
Do I need to go through a lawyer?
Strictly speaking, you don't need to use a lawyer to write a labour hire agreement. However, you could opt to seek legal advice to make sure that no important clauses or points have been missed. If you want to write the document yourself but are not sure how, downloading a legal document template to customise to your needs will give you a good starting point.Back to top
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