Labour Hire Contract Template for Pakistan

A comprehensive legal agreement governed by Pakistani labor laws that establishes the terms and conditions of a labor hire arrangement between three parties: the labor hire company, the worker, and the client company. This document outlines the employment relationship, duties, responsibilities, compensation, benefits, and working conditions while ensuring compliance with federal and provincial labor regulations. It includes provisions for worker protection, statutory benefits, and dispute resolution mechanisms as required under Pakistani employment legislation, including the Industrial Relations Act 2012 and relevant provincial labor laws.

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What is a Labour Hire Contract?

This Labour Hire Contract is designed for use in Pakistan when a labor hire company wishes to employ workers who will provide services to client companies. The document is structured to comply with Pakistani federal and provincial labor laws, including the Industrial Relations Act 2012, Factories Act 1934, and relevant social security legislation. It is particularly useful for businesses seeking flexible workforce solutions while ensuring proper legal protection for all parties involved. The contract addresses essential elements such as employment terms, compensation, statutory benefits, workplace safety, and dispute resolution mechanisms. It includes specific provisions required by Pakistani law regarding working hours, leave entitlements, and social security benefits, while also accommodating industry-specific requirements and client company workplace policies.

What sections should be included in a Labour Hire Contract?

1. Parties: Identifies and provides details of the Labor Hire Company, the Worker, and the Client Company

2. Background: Explains the context of the agreement and the intention to engage in a labor hire arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Employment: Details the nature of work, position, and duties to be performed

5. Term of Agreement: Specifies the duration of employment, including start date and whether fixed-term or ongoing

6. Remuneration and Benefits: Outlines salary, payment terms, and statutory benefits as per Pakistani labor laws

7. Working Hours and Location: Specifies standard working hours, overtime provisions, and work location(s)

8. Statutory Compliance: Addresses compliance with relevant Pakistani labor laws and regulations

9. Leave Entitlements: Details various types of leave as per local laws (annual, sick, casual, etc.)

10. Confidentiality: Obligations regarding confidential information of both labor hire company and client

11. Termination: Conditions and process for termination of employment

12. Dispute Resolution: Process for resolving disputes between parties

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

1. Non-Competition: Restrictions on working with competitors, used when workers have access to sensitive information

2. Intellectual Property: IP rights and ownership, included when work involves creation of intellectual property

3. Performance Reviews: Process for performance evaluation, included for longer-term arrangements

4. Training Requirements: Specific training obligations, included for specialized roles

5. Travel Requirements: Travel provisions and allowances, included when position requires travel

6. Equipment and Tools: Provisions regarding work tools and equipment, included when specific equipment is provided

7. Commission Structure: Details of commission-based payments, included for sales or performance-based roles

8. Shift Work Provisions: Special provisions for shift work, included for positions requiring shift work

What schedules should be included in a Labour Hire Contract?

1. Schedule 1 - Position Description: Detailed description of role, responsibilities, and reporting relationships

2. Schedule 2 - Remuneration Details: Comprehensive breakdown of salary, benefits, and payment structure

3. Schedule 3 - Workplace Policies: Key workplace policies and procedures applicable to the worker

4. Schedule 4 - Client Site Requirements: Specific requirements and protocols for working at client sites

5. Schedule 5 - Benefits and Entitlements: Detailed description of all benefits and entitlements

6. Appendix A - Code of Conduct: Expected standards of behavior and professional conduct

7. Appendix B - Safety Procedures: Health and safety procedures specific to the role

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

Pakistan

Publisher

Genie AI

Cost

Free to use

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