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Employee Lease Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions for leasing employees from one company (the Provider) to another (the Client). This document outlines the responsibilities of both parties, including compliance with UAE Federal Labor Law No. 33 of 2021, handling of wages, benefits, workplace safety, and management oversight. It addresses key aspects such as visa sponsorship, employee rights, termination procedures, and dispute resolution while ensuring alignment with UAE employment regulations and data protection requirements. The agreement serves as a crucial framework for temporary staffing arrangements while protecting the interests of all parties involved.

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What is a Employee Lease Agreement?

The Employee Lease Agreement is essential for businesses operating in the UAE that seek flexible staffing solutions while maintaining compliance with local labor laws. This document is commonly used when one company wishes to utilize the services of employees from another company without directly employing them. The agreement addresses critical aspects required under UAE Federal Labor Law No. 33 of 2021, including employment terms, visa sponsorship, workplace safety, and employee rights. It's particularly relevant for projects requiring temporary skilled workforce, specialized expertise, or during periods of business expansion. The document ensures clear delineation of responsibilities between the provider and client company while protecting the rights of leased employees and maintaining compliance with UAE employment regulations, immigration laws, and data protection requirements.

What sections should be included in a Employee Lease Agreement?

1. Parties: Identification of the Provider (company providing employees), Client (company leasing employees), and specification of their legal status and addresses

2. Background: Context of the agreement, business purpose, and confirmation that parties have authority to enter into employee leasing arrangements

3. Definitions: Definitions of key terms used throughout the agreement, including 'Leased Employees', 'Services', 'Assignment Period', etc.

4. Scope of Services: Details of employee leasing services, including provision of qualified personnel and service standards

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

6. Provider Obligations: Provider's responsibilities including employment contracts, payroll, insurance, and compliance with labor laws

7. Client Obligations: Client's responsibilities regarding work environment, safety, supervision, and treatment of leased employees

8. Fees and Payment Terms: Service fees, payment schedule, expenses, and taxation matters

9. Employee Management: Day-to-day management, performance monitoring, and issue resolution procedures

10. Compliance with Laws: Commitment to comply with UAE labor laws, visa regulations, and other applicable legislation

11. Confidentiality: Protection of confidential information exchanged during the agreement

12. Data Protection: Handling of employee personal data and compliance with data protection laws

13. Liability and Indemnification: Allocation of risks, insurance requirements, and indemnification obligations

14. Dispute Resolution: Process for resolving disputes, applicable law, and jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a Employee Lease Agreement?

1. Non-Solicitation: Restrictions on hiring leased employees directly, used when provider wants to protect their workforce

2. Intellectual Property Rights: Ownership of IP created by leased employees, included when employees may create IP during their assignment

3. Performance Metrics: Specific KPIs and service levels, included for complex or large-scale employee leasing arrangements

4. Training and Development: Responsibilities for employee training, included when specific skills or certifications are required

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in light of global disruptions

6. Exit Management: Detailed process for transitioning employees at end of agreement, important for long-term or complex arrangements

7. Subcontracting: Terms for using subcontractors, included if provider may need to subcontract certain services

What schedules should be included in a Employee Lease Agreement?

1. Schedule 1 - Employee Specifications: Details of roles, qualifications, experience levels, and number of employees to be leased

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, markup percentages, and payment calculations

3. Schedule 3 - Service Levels: Specific service standards, response times, and performance metrics

4. Schedule 4 - Required Documents: List of mandatory documents, visas, permits, and certifications

5. Appendix A - Employee Handbook: Client's workplace policies and procedures applicable to leased employees

6. Appendix B - Health and Safety Guidelines: Safety protocols and procedures specific to the work environment

7. Appendix C - Confidentiality Agreement: Form of confidentiality agreement to be signed by leased employees

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Document Type

Lease Agreement

Cost

Free to use

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