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Outsourced Employee Contract Template for England and Wales

An Outsourced Employee Contract is a legally binding agreement governed by the laws of England and Wales, establishing the terms and conditions for the provision of outsourced workforce services. This agreement defines the triangular relationship between the outsourcing company, the client company, and the outsourced employee, covering aspects such as scope of work, payment terms, obligations, confidentiality, and data protection requirements. It ensures compliance with UK employment legislation, including the Employment Rights Act 1996, Agency Workers Regulations 2010, and relevant data protection laws.

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What is a Outsourced Employee Contract?

The Outsourced Employee Contract is essential for organizations engaging in workforce outsourcing arrangements within England and Wales. This document is particularly relevant in today's dynamic business environment where companies increasingly rely on external workforce solutions. The contract addresses crucial aspects such as employment rights, data protection, confidentiality, and compliance with UK employment laws. It provides clear guidelines on the responsibilities and obligations of all parties involved, while ensuring adherence to regulatory requirements including IR35 legislation, Agency Workers Regulations, and TUPE where applicable. This comprehensive agreement helps minimize legal risks and establishes clear operational parameters for outsourced employment relationships.

What sections should be included in a Outsourced Employee Contract?

1. Parties: Details of the outsourcing company, client company, and worker

2. Background: Context of the outsourcing arrangement and purpose of agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of work to be performed

5. Duration and Term: Length of engagement and renewal provisions

6. Payment Terms: Compensation, payment schedule, expenses

7. Obligations of Parties: Responsibilities of each party

8. Confidentiality: Protection of sensitive information

9. Data Protection: GDPR compliance and data handling

10. Termination: Conditions for ending the agreement

What sections are optional to include in a Outsourced Employee Contract?

1. Non-Compete: Restrictions on competitive activities - use when protecting business interests is crucial

2. Intellectual Property: Ownership of created works - use when work involves creation of IP

3. Insurance: Required insurance coverage - use when specific risks need to be covered

4. Performance Metrics: KPIs and performance standards - use when specific performance targets are required

What schedules should be included in a Outsourced Employee Contract?

1. Schedule 1: Service Description: Detailed scope of services and deliverables

2. Schedule 2: Fee Schedule: Detailed breakdown of fees and payment terms

3. Schedule 3: Service Levels: Performance standards and metrics

4. Appendix A: Data Processing Agreement: GDPR-compliant data processing terms

5. Appendix B: Policies and Procedures: Relevant company policies applicable to the worker

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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