Employee Outsourcing Agreement Template for England and Wales

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Key Requirements PROMPT example:

Employee Outsourcing Agreement

"I need an Employee Outsourcing Agreement for my IT consulting company to provide 50 software developers to a financial services client in London, with specific provisions for data protection and intellectual property rights, starting from March 2025."

Document background
The Employee Outsourcing Agreement is essential for businesses operating in England and Wales that wish to engage external workforce through a third-party provider. This contract type addresses key aspects of modern outsourcing arrangements, including employment rights, data protection, and service delivery standards. It ensures compliance with UK employment legislation, particularly the Agency Workers Regulations 2010 and TUPE regulations. The agreement is designed to protect all parties' interests while providing clarity on responsibilities, liabilities, and operational procedures in outsourcing relationships.
Suggested Sections

1. Parties: Identification of the service provider and client

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of outsourcing services provided

5. Term and Termination: Duration of agreement and termination provisions

6. Payment Terms: Fees, invoicing, and payment conditions

7. Employment Status: Clarification of employment relationships and responsibilities

8. Confidentiality: Protection of confidential information

9. Data Protection: GDPR compliance and data handling requirements

Optional Sections

1. Service Levels: Performance metrics and standards - use for complex service arrangements requiring specific performance measures

2. International Provisions: Cross-border employment considerations - use when services involve multiple jurisdictions

3. Change Control: Process for implementing changes to services - use for long-term or complex arrangements

4. Insurance: Required insurance coverage - use when specific insurance requirements exist

Suggested Schedules

1. Schedule of Services: Detailed breakdown of services to be provided

2. Fee Schedule: Detailed pricing structure and payment terms

3. Service Level Agreement: Specific performance metrics and standards

4. Data Processing Agreement: Detailed data protection obligations and procedures

5. Staff Transfer Provisions: TUPE-related provisions and procedures

6. Key Personnel: List of key staff members and their roles

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Employment Rights Act 1996: Primary legislation governing basic employment rights, terms and conditions of employment, and protection against unfair dismissal

Agency Workers Regulations 2010: Regulations ensuring equal treatment provisions, rights of agency workers, including day one rights and 12-week qualifying rights

Transfer of Undertakings (Protection of Employment) Regulations 2006: TUPE regulations protecting employees during business transfers, ensuring continuation of employment terms and consultation requirements

Working Time Regulations 1998: Legislation governing maximum working hours, rest breaks, holiday entitlements, and night work restrictions

National Minimum Wage Act 1998: Act establishing minimum wage requirements and payment arrangements

Equality Act 2010: Comprehensive legislation protecting against discrimination, ensuring equal treatment and reasonable accommodations

Data Protection Act 2018 and UK GDPR: Laws governing personal data handling, data protection requirements, and cross-border data transfers

Health and Safety at Work Act 1974: Act covering workplace safety obligations, risk assessments, and training requirements

Immigration, Asylum and Nationality Act 2006: Legislation requiring right to work checks and ensuring immigration compliance

Income Tax (Employment and Pensions) Act 2003: Tax legislation covering PAYE considerations, tax obligations, and IR35 implications

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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