Labour Hire Agreement
A Labour Hire Agreement is a document which outlines the terms and conditions for hiring employees via a labour hire agency.
4.5 (22 reviews)
Last updated October 16, 2024
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
The purpose of labour hire agreements is to temporarily hire more labour without having to commit to long-term employees. If you run a labour hire business or wish to hire labour for your business it is essential to create a formal legal document protecting your business and employees. This Labour Hire Agreement will outline what work services will be provided and how much will be charged for each worker. It also highlights important responsibilities and obligations between both parties.
Labour hire agreements are subject to various laws and regulations such as the Fair Work Act 2009 (Cth) and the National Employment Standards (NES). You MUST seek advice from a qualified professional before using this agreement to check that it meets your specific circumstances.
The Legal Risk Score of a Labour Hire Agreement Template
Our legal team have marked this document as medium risk considering:
- You must comply with certain strict legislative and licensing requirements to ensure that your labour hire business is legal.
- Either party may terminate for convenience.
- The agreement is simple to sign.
Labour Hire Agreement Checklist
Complete your free Labour Hire Agreement with our checklist
Get the right individuals to sign the document
Where the parties are companies, their authorised representatives should sign this document.
Keep the document readily available
Both parties should have the document handy as an easy reference for their obligations.
Key Components of Labour Hire Agreements
Scopes of Services
Labour hire agreements will always identify the scope of services which the labour hired should fulfil. The purpose of setting the scope of services is to explicitly state
Rates and Payments
The rates and payments for the labour services should also be stated in a labour-hire agreement. Stating the price offered
Insurance, Liability & Indemnification
In response to a company allowing your business to hire their employees, insurance should be discussed between the two parties and integrated within the labour-hire agreement. Labour hire agreements should also state any indemnities and risks that should be shifted between parties.
Confidentiality & Indemnities Clauses
Labour hire agreements should also identify confidential clauses or any information that should remain private. Furthermore, indemnification clauses should also be included within labour hire agreements to ensure both parties are aware of potential risks and compensation.
Termination
As a labour-hire agreement deals with temporary employment within a business, it is important to discuss the termination of employment– that is, when it ends, if the termination will cease immediately or if it will be phased out.
Advantages of Using Labour Hire Agreements
Using labour-hire agreements comes with a multitude of advantages. These include:
Flexibility
Labour hire agreements provide flexibility to businesses. These agreements are able to fulfil the necessities that businesses need assistance with and are malleable to the workforce size needed.
Expertise
Employers are able to access a market of employees who specialise in the tasks that are needed for the business. In response, businesses can focus on getting their short-term projects done without the long-term commitment of hiring a full-time employee.
Cost Efficiency
Employers may experience cost savings as insurance, benefits or other overhead costs are not their responsibility. Employers are also likely to spend less on training, especially when hiring labour that is specialised.
Common Mistakes to Avoid
Not Using A Customisable Template
Using no template or a genetic template can lead to a labour-hire agreement that lacks specificity. Using a customisable labour hire agreement template such as this one is important in ensuring that the contract is legally compliant, specific and communicative.
Not Consulting Legal Counsel
Seeking legal advice is integral when drafting a labour-hire agreement. Consulting with a lawyer when engaging with labour-hire agreements ensures legal compliance and consistency within the contract.
Unclear Job Descriptions and Responsibilities
Vague or poorly defined job descriptions and responsibilities can lead to misunderstandings and disputes for the duration of the contract. It is important that your labour hire agreement is clear when describing the role and duties the labour must fulfil under the contract.
Use this Labour Hire Agreement if:
- You have a labour hire agency and wish to hire labour for your business.
- You have a company and wish to hire workers from a labour agency.
It's never been so easy
Sign-up to a free Lawpath account
Get started and we’ll take care of you. It’s that easy.
Collaborate with e-Sign and Sharing
Having access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.
Create unlimited legal documents and eSignatures for only $39/month.
Upgrade to a Lawpath legal plan to boost your new business.
Here's what people say about Lawpath’s Labour Hire Agreement
Reviews are managed by BazaarVoice and comply with the BazaarVoice Authenticity Policy. Reviews are independently verified by BazaarVoice and detail our customers' real experiences.