The HR Outsourcing Contract is essential for organizations looking to externalize their human resources functions to specialized service providers. This agreement, governed by English and Welsh law, defines the relationship between the HR service provider and the client company, covering crucial aspects such as service delivery, compliance requirements, data protection, and performance standards. It's particularly relevant in situations where companies seek to optimize their HR operations, reduce costs, or access specialized expertise while ensuring compliance with UK employment laws and regulations.
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1. Parties: Identification of contracting parties, including registered addresses and company numbers
2. Background: Context of the agreement and brief description of why parties are entering into it
3. Definitions: Key terms used throughout the agreement
4. Services: Detailed description of HR services to be provided
5. Service Levels: Performance standards and KPIs
6. Fees and Payment: Pricing structure, payment terms, and invoicing procedures
7. Data Protection: GDPR compliance and data handling requirements
8. Confidentiality: Protection of sensitive information
9. Term and Termination: Duration and termination provisions
10. Liability and Indemnification: Risk allocation between parties
1. TUPE Provisions: Required if employees may transfer between parties - use when staff transfer is likely
2. Change Control: Process for managing changes to services - use for complex or long-term contracts
3. Transition Services: Process for service handover - use when complex implementation is required
4. Business Continuity: Disaster recovery and service continuation - use for critical service provisions
1. Schedule 1 - Services Description: Detailed breakdown of services to be provided
2. Schedule 2 - Service Levels: Detailed KPIs and performance metrics
3. Schedule 3 - Charges: Detailed pricing structure and payment terms
4. Schedule 4 - Data Processing Agreement: GDPR-compliant data processing terms
5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation
6. Schedule 6 - Key Personnel: Details of key staff from both parties
7. Schedule 7 - Exit Management: Procedures for contract termination and service transfer
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