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Employee Outsourcing Agreement Template for England and Wales

An Employee Outsourcing Agreement under English and Welsh law establishes the legal framework for one company to provide staffing services to another. This agreement covers essential aspects including employment terms, service delivery, compliance with UK employment laws, data protection requirements, and financial arrangements. It incorporates provisions for TUPE regulations, agency worker rights, and ensures adherence to UK employment legislation while defining responsibilities between service provider and client.

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What is a Employee Outsourcing Agreement?

The Employee Outsourcing Agreement is essential for businesses operating in England and Wales that wish to engage external workforce through a third-party provider. This contract type addresses key aspects of modern outsourcing arrangements, including employment rights, data protection, and service delivery standards. It ensures compliance with UK employment legislation, particularly the Agency Workers Regulations 2010 and TUPE regulations. The agreement is designed to protect all parties' interests while providing clarity on responsibilities, liabilities, and operational procedures in outsourcing relationships.

What sections should be included in a Employee Outsourcing Agreement?

1. Parties: Identification of the service provider and client

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of outsourcing services provided

5. Term and Termination: Duration of agreement and termination provisions

6. Payment Terms: Fees, invoicing, and payment conditions

7. Employment Status: Clarification of employment relationships and responsibilities

8. Confidentiality: Protection of confidential information

9. Data Protection: GDPR compliance and data handling requirements

What sections are optional to include in a Employee Outsourcing Agreement?

1. Service Levels: Performance metrics and standards - use for complex service arrangements requiring specific performance measures

2. International Provisions: Cross-border employment considerations - use when services involve multiple jurisdictions

3. Change Control: Process for implementing changes to services - use for long-term or complex arrangements

4. Insurance: Required insurance coverage - use when specific insurance requirements exist

What schedules should be included in a Employee Outsourcing Agreement?

1. Schedule of Services: Detailed breakdown of services to be provided

2. Fee Schedule: Detailed pricing structure and payment terms

3. Service Level Agreement: Specific performance metrics and standards

4. Data Processing Agreement: Detailed data protection obligations and procedures

5. Staff Transfer Provisions: TUPE-related provisions and procedures

6. Key Personnel: List of key staff members and their roles

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use

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