In the current environment, it is not unusual for businesses to enter into an arrangement with another party for the provision of workers, whether for a specific task or type of work, or for the ongoing performance of services.

Labour hire agreements can be drafted to reflect the terms and conditions of such an arrangement, that is, between one party who provides the workers ("Provider"), and the other party who "hires" the workers ("Client"). The agreement will usually set out the rights and obligations of each party, and may vary depending on the workers being provided, the work being performed and the industry of work.

Some of the matters which may be covered in a labour hire agreement include the following:

  • term/length of the arrangement;
  • obligations of the parties and services being provided;
  • fees payable and payment terms;
  • responsibility for and obligations with respect to the workers including providing a safe workplace;
  • insurance obligations of the parties;
  • non-solicitation term in relation to the Client engaging a worker directly;
  • ownership of intellectual property created by a worker in the course of the engagement;
  • liability of the parties to each other;
  • confidentiality provisions;
  • termination of the agreement;
  • consequences of termination or expiration of the agreement; and
  • dispute resolution clause.

It is also important to review your labour hire agreements regularly, to ensure that the terms accurately reflect your current arrangement, and any changed circumstances.

A separate written agreement can also be entered into between the Provider and the actual worker setting out the terms and conditions of their arrangement and their respective rights and responsibilities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.