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Labour Supply Agreement Template for England and Wales

A Labour Supply Agreement is a legally binding contract governed by English and Welsh law that establishes the terms and conditions under which a supplier provides temporary workers to a client company. The agreement covers key aspects including worker specifications, payment terms, compliance with employment laws, health and safety requirements, and liability provisions. It ensures both parties understand their obligations regarding worker management, statutory compliance, and risk allocation while protecting the interests of all parties involved.

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What is a Labour Supply Agreement?

Labour Supply Agreements are essential documents for businesses operating in England and Wales that either provide or require temporary workforce solutions. These agreements establish the framework for worker supply arrangements, ensuring compliance with UK employment laws, agency worker regulations, and health and safety requirements. A Labour Supply Agreement typically includes provisions for worker specifications, payment terms, statutory compliance, insurance requirements, and liability allocation. It's particularly crucial in industries with fluctuating workforce needs or specialized skill requirements, providing legal protection and clarity for all parties involved in the labour supply chain.

What sections should be included in a Labour Supply Agreement?

1. Parties: Identification of the supplier and recipient of labour services

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement including relevant legislative references

4. Services: Detailed description of labour supply services to be provided

5. Payment Terms: Fees, invoicing, and payment arrangements including handling of statutory payments

6. Duration and Termination: Contract term, termination provisions, and notice periods

7. Obligations of the Parties: Key responsibilities of both supplier and recipient including compliance requirements

8. Compliance with Laws: Obligations regarding employment law, immigration, health and safety, and other relevant legislation

9. Warranties and Indemnities: Standard warranties and specific indemnities related to employment matters

10. Insurance: Required insurance coverage and minimum limits

11. Confidentiality: Protection of confidential information and trade secrets

12. Data Protection: Compliance with UK GDPR and Data Protection Act 2018

13. Dispute Resolution: Process for handling disputes between parties

14. General Provisions: Standard boilerplate clauses including governing law and jurisdiction

What sections are optional to include in a Labour Supply Agreement?

1. Service Levels: Performance metrics and standards for larger scale or complex supply arrangements

2. TUPE Provisions: Transfer of employment provisions when there's potential for transfer of employees

3. International Supply: Cross-border supply provisions for workers supplied across jurisdictions

4. Change Control: Process for managing changes to services or commercial terms

5. Anti-Bribery and Modern Slavery: Additional compliance provisions for specific regulatory requirements

What schedules should be included in a Labour Supply Agreement?

1. Schedule 1 - Service Description: Detailed specification of services to be provided including scope and requirements

2. Schedule 2 - Charges: Detailed pricing structure, rate cards, and payment mechanisms

3. Schedule 3 - Service Levels: Performance metrics, KPIs, and measurement methodology

4. Schedule 4 - Form of Assignment Schedule: Template for individual worker assignments including key terms

5. Schedule 5 - Data Protection: Detailed data processing terms and requirements including processing activities

6. Schedule 6 - Key Personnel: List of key personnel and their roles in service delivery

7. Schedule 7 - Policies and Procedures: Relevant operational policies and procedures to be followed

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

Jurisdiction

England and Wales

Document Type

Supplier Agreement

Cost

Free to use

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