Employee Lease Agreement Template for India

The Employee Lease Agreement serves as a critical legal instrument in India's evolving workforce management landscape, where companies increasingly rely on flexible staffing solutions. This document type is essential when a company (lessee) requires temporary or specialized workforce support without directly employing the workers, instead engaging them through a professional staffing agency (lessor). The agreement must comply with various Indian labor laws, particularly the Contract Labour (Regulation and Abolition) Act, 1970, and related state-specific regulations. It comprehensively addresses employment terms, statutory benefits, workplace safety, supervision arrangements, and compliance requirements, while clearly delineating the responsibilities of both the staffing agency and the client company. This type of agreement is particularly valuable for projects requiring specialized skills, managing seasonal workforce fluctuations, or maintaining workforce flexibility while ensuring legal compliance.

1. Parties: Identifies and provides full details of the lessor company (staffing agency), lessee company (client), and their authorized signatories

2. Background: Explains the context of the agreement, including the lessor's business of providing staff 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 nature of staffing services provided, including number of employees, roles, and work locations

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

6. Payment Terms: Outlines the fee structure, payment schedule, and billing procedures

7. Responsibilities of the Lessor: Details obligations including recruitment, payroll management, statutory compliance, and employee benefits

8. Responsibilities of the Lessee: Specifies workplace conditions, safety measures, supervision, and other client obligations

9. Employee Management: Covers day-to-day management, attendance, leave policies, and performance evaluation

10. Statutory Compliance: Details compliance with labor laws, including PF, ESI, and other mandatory requirements

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

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

13. Dispute Resolution: Procedures for resolving disputes between parties

14. Governing Law: Specifies Indian law as governing law and jurisdiction

15. General Provisions: Standard clauses including notices, amendments, and severability