Labour Hire Agreement Template for Hong Kong

A comprehensive agreement governed by Hong Kong law that establishes the terms and conditions for the provision of temporary workers by a labor hire agency to a host employer. The document addresses key aspects including worker placement procedures, payment terms, statutory compliance requirements under Hong Kong employment legislation, workplace safety obligations, insurance requirements, and the respective responsibilities of both the agency and host employer. It ensures compliance with Hong Kong's Employment Ordinance and related regulations while protecting the interests of all parties involved in the labor hire arrangement.

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What is a Labour Hire Agreement?

This Labour Hire Agreement is essential for businesses in Hong Kong that engage temporary workers through labor hire agencies. It establishes the legal framework for worker placement, defining the rights and obligations of both the agency and host employer while ensuring compliance with Hong Kong employment laws. The document is particularly crucial in industries with variable workforce needs or specialized staffing requirements. It covers critical aspects such as statutory benefits, workplace safety, insurance requirements, and payment terms, while clearly delineating responsibilities between parties. The agreement helps protect all stakeholders by providing clear guidelines for worker management, dispute resolution, and regulatory compliance under Hong Kong jurisdiction.

What sections should be included in a Labour Hire Agreement?

1. Parties: Identifies and defines the Labor Hire Agency and the Host Employer as the contracting parties

2. Background: Explains the context of the agreement, including the agency's business of providing temporary workers and the host employer's need for such services

3. Definitions: Defines key terms used throughout the agreement, including 'Workers', 'Services', 'Assignment', 'Charges', etc.

4. Scope of Services: Details the labor hire services to be provided, including worker recruitment, placement, and management processes

5. Agency Obligations: Specifies the agency's responsibilities including worker screening, compliance with employment laws, and administrative duties

6. Host Employer Obligations: Outlines the host employer's responsibilities regarding worker supervision, safety, and workplace conditions

7. Worker Management: Details processes for worker assignments, replacements, performance management, and issue resolution

8. Fees and Payment Terms: Specifies service charges, payment schedules, and mechanisms for rate adjustments

9. Insurance and Liability: Details insurance requirements and allocation of liability between parties

10. Compliance with Laws: Addresses compliance with Hong Kong employment laws, including MPF, workers compensation, and statutory benefits

11. Confidentiality: Provisions regarding confidential information protection and data privacy compliance

12. Term and Termination: Specifies agreement duration, renewal terms, and termination provisions

13. Dispute Resolution: Outlines procedures for resolving disputes between parties

14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc.

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

1. Non-Solicitation: Prevents direct hiring of workers by the host employer; include when protecting the agency's worker pool is crucial

2. Intellectual Property: Addresses IP rights and ownership of work product; include when workers may create IP during assignments

3. Training Requirements: Specifies training responsibilities and costs; include when specialized training is needed

4. Performance Guarantees: Establishes service level agreements and remedies; include for high-value or critical placements

5. Transition Services: Procedures for handover at agreement end; include for long-term or complex arrangements

6. Force Majeure: Addresses unforeseen circumstances affecting service delivery; include when requested by parties

7. Ethics and Compliance: Additional compliance requirements; include when working with regulated industries

What schedules should be included in a Labour Hire Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of service charges, markup rates, and payment terms

2. Schedule 2 - Service Specifications: Detailed description of services, including worker categories and qualification requirements

3. Schedule 3 - Key Performance Indicators: Performance metrics and reporting requirements

4. Schedule 4 - Insurance Requirements: Specific insurance types and coverage amounts required

5. Schedule 5 - Workplace Safety Requirements: Safety protocols and procedures specific to the host employer's workplace

6. Appendix A - Standard Operating Procedures: Detailed procedures for worker management, timesheets, and issue resolution

7. Appendix B - Required Forms: Templates for assignments, timesheets, incident reports, etc.

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Cost

Free to use

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