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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.
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.
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:
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.
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:
In drafting a Labour Agreement, you should avoid using vague terminology, misinformation and references to outdated laws.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.
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.
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.
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.
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.
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