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Employee Leasing Agreement for India

Employee Leasing Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions for the temporary deployment of employees from a staffing company (lessor) to a client company (lessee). The document outlines the responsibilities of both parties regarding employee management, statutory compliance, compensation, benefits, and workplace conditions, while ensuring adherence to Indian labor laws including the Contract Labour (Regulation and Abolition) Act, 1970, and other relevant employment legislation. It addresses crucial aspects such as liability allocation, regulatory compliance, performance standards, and dispute resolution mechanisms within the Indian legal framework.

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Employee Leasing Agreement

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What is a Employee Leasing Agreement?

The Employee Leasing Agreement is essential for businesses operating in India that require flexible workforce solutions while maintaining compliance with local labor laws. This document is typically used when a company needs to augment its workforce through a professional staffing organization, either for specific projects, seasonal requirements, or specialized skill needs. The agreement comprehensively covers the tripartite relationship between the staffing company (lessor), client company (lessee), and leased employees, ensuring clear delineation of responsibilities and compliance obligations. It addresses crucial aspects such as statutory benefits, workplace safety, performance management, and dispute resolution, while adhering to Indian legal requirements including the Contract Labour (Regulation and Abolition) Act, 1970, and various social security legislations. The document is particularly relevant in today's dynamic business environment where companies seek operational flexibility while ensuring legal compliance and risk management.

What sections should be included in a Employee Leasing Agreement?

1. Parties: Identifies and provides details of the contracting parties - the lessor (staffing company) and lessee (client company)

2. Background: Explains the context of the agreement, including the lessor's business of providing staffing services and the lessee's requirement for temporary staff

3. Definitions: Defines key terms used throughout the agreement, including 'Leased Employees', 'Services', 'Term', etc.

4. Scope of Services: Details the employee leasing services to be provided, including recruitment, deployment, and management of leased employees

5. Term and Termination: Specifies the duration of the agreement and conditions for termination

6. Rights and Obligations of the Lessor: Outlines the staffing company's responsibilities including employee management, payroll, and statutory compliance

7. Rights and Obligations of the Lessee: Defines the client company's responsibilities including workplace safety, day-to-day supervision, and payment obligations

8. Payment Terms: Details the fee structure, billing process, and payment schedule

9. Statutory Compliance: Addresses compliance with labor laws, social security regulations, and other applicable legislation

10. Confidentiality: Provisions for protecting confidential information of all parties

11. Indemnification: Mutual indemnification clauses covering various risks and liabilities

12. Dispute Resolution: Procedures for resolving disputes between parties

13. Governing Law: Specifies Indian law as the governing law and jurisdiction

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

1. Insurance Requirements: Additional insurance coverage requirements beyond statutory obligations - used when specific industry risks need to be covered

2. Intellectual Property Rights: Provisions for IP protection - included when leased employees may be involved in creative or technical work

3. Non-Compete and Non-Solicitation: Restrictions on competitive activities - used when employees have access to sensitive business information

4. Performance Standards: Specific performance metrics and evaluation criteria - included when service levels need to be strictly monitored

5. Training and Development: Provisions for employee training - used when specific skills or certifications are required

6. Transition Services: Procedures for transitioning employees - included when there's potential for permanent hiring

7. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID

8. Data Protection: Specific data privacy requirements - included when handling sensitive personal or business data

What schedules should be included in a Employee Leasing Agreement?

1. Schedule A - Employee Details: List of leased employees with their designations, qualifications, and deployment details

2. Schedule B - Fee Structure: Detailed breakdown of service fees, markup percentages, and additional charges

3. Schedule C - Statutory Benefits: List of statutory benefits and allocation of responsibilities between lessor and lessee

4. Schedule D - Service Level Requirements: Specific performance metrics, reporting requirements, and service standards

5. Schedule E - Compliance Checklist: List of applicable laws and compliance requirements with responsibility matrix

6. Appendix 1 - Standard Operating Procedures: Detailed procedures for employee management, timekeeping, and issue resolution

7. Appendix 2 - Required Documentation: List of mandatory documents to be maintained for statutory compliance

8. Appendix 3 - Incident Reporting Format: Templates for reporting workplace incidents, grievances, or compliance issues

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 | Serial Founder & Legal AI Author

Jurisdiction

India

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions






























Clauses



































Relevant Industries

Information Technology

Manufacturing

Construction

Healthcare

Retail

Business Process Outsourcing

Engineering Services

Hospitality

Logistics and Supply Chain

Telecommunications

Financial Services

Professional Services

Relevant Teams

Human Resources

Legal

Compliance

Operations

Finance

Procurement

Risk Management

Contract Administration

Project Management Office

Business Operations

Relevant Roles

HR Director

Legal Counsel

Compliance Officer

Operations Manager

Project Manager

Human Resources Manager

Procurement Manager

Contracts Manager

Staffing Coordinator

Risk Manager

Finance Director

Business Unit Head

General Manager

Chief Operating Officer

Chief Human Resources Officer

Chief Legal Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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