On Hire Labour Agreement Template for India

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Key Requirements PROMPT example:

On Hire Labour Agreement

"I need an On Hire Labour Agreement for my manufacturing facility in Gujarat, India, to engage 50 skilled workers through a labor contractor starting March 2025, with specific provisions for technical training and safety protocols for machinery operation."

Document background
The On Hire Labour Agreement is essential for businesses operating in India that engage contract workers through third-party labor contractors. This document becomes necessary when companies need flexible workforce solutions while ensuring compliance with Indian labor laws, particularly the Contract Labour (Regulation and Abolition) Act, 1970. It's commonly used in scenarios where organizations require temporary or project-based workers, seasonal staff, or want to outsource non-core activities. The agreement comprehensively covers worker welfare, statutory compliance, payment terms, and operational procedures, protecting both the principal employer and labor contractor while ensuring workers' rights are maintained in accordance with Indian regulations.
Suggested Sections

1. Parties: Identifies the contracting parties - the principal employer and the labor contractor

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Details the nature of work, number of workers, and specific services to be provided

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

6. Payment Terms: Service charges, wage rates, payment schedule, and billing procedures

7. Statutory Compliance: Obligations regarding labor laws, licenses, and regulatory requirements

8. Workers' Welfare and Benefits: Provisions for statutory benefits, insurance, and welfare measures

9. Working Hours and Conditions: Specifies work timing, overtime, holidays, and working conditions

10. Supervision and Control: Management structure and reporting relationships

11. Safety and Security: Safety protocols and security measures for workers

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

13. Dispute Resolution: Process for resolving disputes between parties

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

Optional Sections

1. Training Requirements: Include when specific training or skill development is required for workers

2. Accommodation Provisions: Include when workers require accommodation facilities

3. Transportation Arrangements: Include when transportation services are provided to workers

4. Performance Metrics: Include when specific performance standards and evaluation criteria are needed

5. Confidentiality: Include when workers will have access to sensitive information

6. Non-Solicitation: Include to prevent direct hiring of contract workers

7. Force Majeure: Include to address unforeseen circumstances affecting contract performance

8. Insurance Requirements: Include when additional insurance beyond statutory requirements is needed

Suggested Schedules

1. Schedule A - Worker Details: List of workers with their designations, qualifications, and wage details

2. Schedule B - Wage Structure: Detailed breakdown of wages, allowances, and deductions

3. Schedule C - Service Locations: List of work locations and specific requirements for each location

4. Schedule D - Safety Guidelines: Detailed safety protocols and procedures

5. Schedule E - Statutory Benefits: Details of all statutory benefits and calculation methods

6. Appendix 1 - Required Licenses: Copies of all relevant licenses and registrations

7. Appendix 2 - Compliance Certificates: Copies of compliance certificates and statutory registrations

8. Appendix 3 - Standard Operating Procedures: Detailed procedures for various aspects of work

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
Relevant Industries

Manufacturing

Construction

Logistics and Warehousing

Facilities Management

Industrial Services

Mining

Infrastructure

Textiles

Automotive

Food Processing

Relevant Teams

Human Resources

Legal

Operations

Procurement

Compliance

Administration

Industrial Relations

Facility Management

Project Management

Supply Chain

Relevant Roles

HR Manager

Legal Counsel

Operations Manager

Facility Manager

Procurement Manager

Compliance Officer

Project Manager

Site Supervisor

Industrial Relations Manager

Contract Manager

Supply Chain Manager

Administration Head

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

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