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Labour Only Subcontractor Agreement for India

Labour Only Subcontractor Agreement Template for India

This agreement template is designed for use in India to establish a formal relationship between a main contractor and a labor-only subcontractor. It complies with Indian labor laws, including the Contract Labour (Regulation and Abolition) Act, 1970, and related legislation. The agreement covers essential aspects such as scope of work, payment terms, statutory compliance requirements, worker welfare provisions, and health and safety obligations. It includes specific provisions required under Indian law for labor subcontracting arrangements, ensuring proper worker classification, social security benefits, and dispute resolution mechanisms.

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What is a Labour Only Subcontractor Agreement?

The Labour Only Subcontractor Agreement is essential for businesses operating in India that need to engage workers through subcontractors while ensuring compliance with local labor laws. This document type is commonly used when a company requires workforce flexibility without directly employing workers, particularly in sectors such as construction, manufacturing, and industrial projects. The agreement must comply with various Indian regulations, including the Contract Labour (Regulation and Abolition) Act, 1970, Employees' Provident Funds Act, and other relevant labor laws. It addresses critical aspects such as worker welfare, statutory benefits, safety requirements, and proper documentation of the subcontracting relationship. The agreement is structured to protect both the main contractor and subcontractor while ensuring workers' rights are maintained according to Indian law.

What sections should be included in a Labour Only Subcontractor Agreement?

1. Parties: Details of the Contractor and Subcontractor, including registered addresses and company registration numbers

2. Background: Context of the agreement and brief description of the project or work requirement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of the labor services to be provided by the Subcontractor

5. Term and Duration: Period of the agreement, including start date and duration

6. Subcontractor Obligations: Key responsibilities and duties of the Subcontractor, including compliance with labor laws

7. Contractor Obligations: Key responsibilities and duties of the main Contractor

8. Payment Terms: Payment rates, schedule, and method of payment

9. Worker Management: Provisions regarding worker supervision, attendance, and performance management

10. Compliance with Laws: Obligations to comply with relevant labor laws and maintaining necessary registrations/licenses

11. Health and Safety: Safety requirements and responsibilities for worker welfare

12. Insurance and Indemnity: Insurance requirements and indemnification provisions

13. Confidentiality: Protection of confidential information and trade secrets

14. Termination: Conditions and process for agreement termination

15. Dispute Resolution: Process for resolving disputes between parties

16. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Labour Only Subcontractor Agreement?

1. Performance Standards: Specific performance metrics and quality standards - include when project requires specific quality measurements

2. Equipment and Tools: Provisions regarding supply and maintenance of equipment - include when relevant to the scope of work

3. Training Requirements: Specific training obligations - include for specialized work or high-risk activities

4. Site Access and Security: Rules for accessing work sites - include for sensitive or secure locations

5. Accommodation and Transport: Provisions for worker accommodation and transport - include for remote locations or interstate workers

6. Environmental Compliance: Environmental protection measures - include for environmentally sensitive work

7. Intellectual Property: IP rights and obligations - include when workers may create or handle IP

8. Non-Compete: Restrictions on competition - include when protecting business interests is crucial

9. Force Majeure: Provisions for unforeseen circumstances - include based on project risk assessment

What schedules should be included in a Labour Only Subcontractor Agreement?

1. Schedule 1 - Scope of Work: Detailed breakdown of labor services to be provided

2. Schedule 2 - Rate Card: Detailed breakdown of labor rates and payment terms

3. Schedule 3 - Worker Categories and Qualifications: List of worker categories and required qualifications

4. Schedule 4 - Health and Safety Requirements: Specific safety procedures and requirements

5. Schedule 5 - Compliance Certificates: List of required statutory registrations and certificates

6. Schedule 6 - Performance Metrics: Detailed performance standards and measurement criteria

7. Appendix A - Worker Documentation: Ƶ for worker documentation and records

8. Appendix B - Required Forms: Standard forms for various processes (attendance, incidents, etc.)

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions







































Clauses






























Relevant Industries

Construction

Manufacturing

Infrastructure

Mining

Industrial Projects

Real Estate Development

Facilities Management

Warehousing and Logistics

Automotive

Oil and Gas

Power Generation

Telecommunications

Relevant Teams

Legal

Human Resources

Procurement

Operations

Compliance

Health and Safety

Project Management

Risk Management

Finance

Supply Chain

Relevant Roles

Project Manager

Site Supervisor

HR Manager

Legal Counsel

Procurement Manager

Contracts Manager

Operations Manager

Compliance Officer

Health and Safety Manager

Labor Relations Manager

Construction Manager

Facilities Manager

Supply Chain Manager

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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