Hr Outsourcing Contract Agreement Template for England and Wales

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Key Requirements PROMPT example:

Hr Outsourcing Contract Agreement

"Need an HR Outsourcing Contract Agreement for my tech startup (25 employees) to outsource all HR functions to ServiceCo Ltd, starting from March 2025, with special attention to data protection and scalability provisions."

Document background

The HR Outsourcing Contract Agreement is designed for organizations seeking to delegate their human resources functions to specialized external providers in England and Wales. This contract type is particularly relevant when companies aim to optimize HR operations, reduce costs, or access specialized expertise. The agreement encompasses comprehensive provisions for service delivery, compliance with UK employment laws, data protection requirements, and performance standards. It's essential for establishing clear responsibilities, service levels, and protecting both parties' interests while ensuring regulatory compliance.

Suggested Sections

1. Parties: Details of the service provider and client organization

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of HR services to be provided

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

6. Service Provider Obligations: Key responsibilities and deliverables of the HR service provider

7. Client Obligations: Client responsibilities and requirements for enabling service delivery

8. Data Protection and Confidentiality: Information handling and security requirements in compliance with UK GDPR

9. Fees and Payment: Pricing, payment terms and conditions for services rendered

10. Liability and Indemnification: Allocation of risks and responsibilities between parties

11. Force Majeure: Provisions for handling circumstances beyond reasonable control

12. Governing Law and Jurisdiction: Specification of English and Welsh law as governing law and jurisdiction

Optional Sections

1. TUPE Provisions: Detailed provisions for staff transfers under TUPE regulations, required when employees are being transferred between organizations

2. International Services: Additional provisions for cross-border HR services when services span multiple jurisdictions

3. Performance Metrics: Specific KPIs and service levels for detailed performance monitoring in larger contracts

4. Compliance with Modern Slavery Act: Additional provisions regarding modern slavery compliance, required for larger organizations

5. Change Control: Formal procedures for managing changes to services or contract terms, recommended for complex or long-term contracts

Suggested Schedules

1. Schedule 1: Service Description: Detailed breakdown of HR services to be provided including specific deliverables and methodologies

2. Schedule 2: Service Levels: Performance standards, metrics and measurement methodologies

3. Schedule 3: Charges: Detailed pricing structure, payment terms and any variable cost elements

4. Schedule 4: Data Processing Agreement: Detailed data protection obligations and procedures in compliance with UK GDPR

5. Schedule 5: Key Personnel: Details of key staff involved in service delivery and their roles

6. Schedule 6: Exit Management: Procedures for contract termination and service transition

7. Appendix A: Information Security Requirements: Specific security protocols, standards and compliance requirements

8. Appendix B: Required Reports: Templates and specifications for required reporting and performance monitoring

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Technology
Manufacturing
Professional Services
Retail
Healthcare

Relevant Teams

Human Resources
Legal
Finance
Operations
Procurement
Information Technology

Relevant Roles

HR Director
Chief Operating Officer
Procurement Manager
Legal Counsel
Finance Director

Industries

Employment Rights Act 1996: Fundamental employment law that establishes basic employment rights including unfair dismissal, redundancy payments, and protection of wages

Equality Act 2010: Legislation protecting against discrimination based on protected characteristics in the workplace and ensuring equal treatment

Working Time Regulations 1998: Governs maximum working hours, rest breaks, and annual leave entitlements for workers

National Minimum Wage Act 1998: Sets out the legal minimum pay requirements for workers in the UK

UK General Data Protection Regulation (UK GDPR): Post-Brexit data protection regulation governing how personal data must be handled, processed, and protected

Data Protection Act 2018: UK's implementation of data protection laws, working alongside UK GDPR to regulate personal data processing

Privacy and Electronic Communications Regulations (PECR): Specific rules for electronic communications, including electronic marketing and cookies

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety in Great Britain

Management of Health and Safety at Work Regulations 1999: Detailed requirements for workplace risk assessments and safety management systems

Unfair Contract Terms Act 1977: Regulates contracts by restricting how far civil liability for breach of contract can be avoided

Transfer of Undertakings Regulations 2006 (TUPE): Protects employees' rights when the business they work for transfers to a new owner

Agency Workers Regulations 2010: Ensures equal treatment for temporary agency workers compared to permanent employees

Companies Act 2006: Main legislation governing company formation and operation in the UK

Modern Slavery Act 2015: Requires businesses to ensure their operations and supply chains are free from slavery and human trafficking

Computer Misuse Act 1990: Legislation dealing with unauthorized access to computer systems and data protection

Network and Information Systems Regulations 2018: Requirements for cybersecurity and incident reporting for essential services

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Let's create your Hr Outsourcing Contract Agreement

Authors

Alex Denne

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