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Temp Agency Contract Template for India

This document establishes the legal framework for temporary staffing arrangements in India, governed by the Contract Labour (Regulation and Abolition) Act, 1970, and related labor laws. It defines the relationship between a temporary staffing agency and a client company, outlining responsibilities, compliance requirements, worker management procedures, and commercial terms. The agreement ensures protection of all parties' interests while maintaining compliance with Indian statutory requirements for contract labor, including provisions for worker welfare, payment terms, and statutory benefits.

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What is a Temp Agency Contract?

This Temp Agency Contract is essential for businesses operating in India that require flexible workforce solutions through temporary staffing arrangements. The document is designed to comply with Indian labor laws, particularly the Contract Labour (Regulation and Abolition) Act, 1970, and associated regulations. It establishes the terms and conditions for temporary staffing services, including worker deployment, statutory compliance, payment terms, and operational procedures. This agreement is crucial for companies seeking to manage temporary workforce requirements while ensuring legal compliance, risk mitigation, and clear delineation of responsibilities between the staffing agency and the client company. The document incorporates necessary provisions for worker welfare, statutory benefits, and compliance reporting as required under Indian law.

What sections should be included in a Temp Agency Contract?

1. Parties: Identifies the contracting parties - the temporary staffing agency and the client company

2. Background: Explains the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Details the temporary staffing services to be provided by the agency

5. Agency Obligations: Specifies the responsibilities of the temporary staffing agency

6. Client Obligations: Outlines the responsibilities of the client company

7. Temporary Worker Management: Describes processes for worker assignment, replacement, and performance management

8. Compliance Requirements: Details statutory compliance obligations under Indian labor laws

9. Fees and Payment Terms: Specifies service fees, payment schedule, and related financial terms

10. Confidentiality: Addresses confidentiality obligations of all parties

11. Indemnification: Contains mutual indemnification provisions

12. Term and Termination: Specifies contract duration and termination conditions

13. Dispute Resolution: Outlines process for resolving disputes between parties

14. Governing Law: Specifies Indian law as governing law and jurisdiction

15. General Provisions: Includes standard boilerplate clauses

What sections are optional to include in a Temp Agency Contract?

1. Non-Solicitation: Prohibits direct hiring of temporary workers - include when client agrees to restrictions

2. Intellectual Property Rights: Addresses IP ownership and rights - include for technical or creative roles

3. Insurance Requirements: Specifies additional insurance coverage - include for high-risk industries

4. Data Protection: Details data privacy obligations - include when handling sensitive personal data

5. Force Majeure: Addresses unforeseen circumstances - include based on risk assessment

6. Service Level Agreement: Defines performance metrics - include for large-scale or critical staffing arrangements

7. Transition Services: Covers handover procedures - include for long-term or complex engagements

What schedules should be included in a Temp Agency Contract?

1. Schedule A - Fee Schedule: Detailed breakdown of service fees, markups, and payment terms

2. Schedule B - Statutory Compliance Checklist: List of applicable labor law compliance requirements

3. Schedule C - Service Specifications: Detailed description of staffing services and worker categories

4. Schedule D - Required Documentation: List of mandatory documents for temporary workers

5. Schedule E - Client Locations: List of approved client sites for worker deployment

6. Appendix 1 - Standard Operating Procedures: Detailed procedures for worker deployment and management

7. Appendix 2 - Reporting Ƶ: Standard formats for various reports and documentation

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

India

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use

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