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Labour Hire Agreement Template for Philippines

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Key Requirements PROMPT example:

Labour Hire Agreement

"I need a Labour Hire Agreement for my IT consulting company in Manila to provide 50 software developers to a multinational tech client, starting March 2025, with specific provisions for intellectual property protection and remote work arrangements."

What is a Labour Hire Agreement?

The Labour Hire Agreement is essential for businesses operating in the Philippines that need to engage workers through a third-party labor hire provider. This document type is particularly crucial given the strict regulatory environment in the Philippines regarding labor contracting arrangements. The agreement must comply with the Labor Code of the Philippines, DOLE Department Order No. 174-17, and various other regulations governing employment relationships. It typically includes comprehensive provisions for worker management, statutory compliance, benefits administration, and risk allocation between parties. This document is commonly used in industries requiring flexible workforce solutions while ensuring protection of workers' rights and compliance with Philippine labor laws.

What sections should be included in a Labour Hire Agreement?

1. Parties: Identification of the Labor Hire Company and the Client Company, including their complete legal names, addresses, and registration details

2. Background: Context of the agreement, including the nature of the Client's business and its requirement for hired labor

3. Definitions: Key terms used throughout the agreement, including 'Assigned Workers', 'Services', 'Workplace', etc.

4. Scope of Services: Detailed description of labor hire services, including types of workers to be provided and nature of work

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Labor Hire Company Obligations: Responsibilities including worker recruitment, screening, compliance with labor laws, and maintenance of employment records

7. Client Obligations: Responsibilities regarding workplace safety, supervision, and cooperation with the Labor Hire Company

8. Worker Management: Processes for worker assignment, replacement, performance management, and discipline

9. Fees and Payment Terms: Service fees, payment schedule, and terms including provisions for rate adjustments

10. Statutory Compliance: Compliance with Philippine labor laws, social security, healthcare, and other mandatory benefits

11. Insurance and Liability: Insurance requirements and allocation of liability between parties

12. Confidentiality: Protection of confidential information of all parties

13. Dispute Resolution: Process for resolving disputes between parties

14. General Provisions: Standard clauses including notices, amendments, governing law, etc.

What sections are optional to include in a Labour Hire Agreement?

1. Non-Competition: Restrictions on hiring workers directly, used when the Labor Hire Company wants to protect its workforce

2. Intellectual Property: IP protection clauses, needed when workers may create or have access to IP

3. International Workers: Additional provisions for foreign workers, if applicable

4. Industry-Specific Compliance: Special provisions for regulated industries like manufacturing or construction

5. Performance Metrics: KPIs and service level agreements, used in more sophisticated arrangements

6. Training and Development: Provisions for worker training and skill development, useful for long-term arrangements

What schedules should be included in a Labour Hire Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of service fees, markup rates, and payment terms

2. Schedule 2 - Service Specifications: Detailed description of worker roles, qualifications, and service requirements

3. Schedule 3 - Statutory Benefits: List of mandatory benefits and their computation under Philippine law

4. Schedule 4 - Operating Procedures: Detailed procedures for worker requisition, timesheet submission, and management

5. Appendix A - Required Forms: Standard forms for worker requisition, evaluation, and incident reporting

6. Appendix B - Company Policies: Relevant policies of both parties that workers must comply with

Authors

Alex Denne

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

Relevant legal definitions



































Clauses




































Relevant Industries

Manufacturing

Construction

Information Technology

Business Process Outsourcing

Agriculture

Logistics and Transportation

Retail

Hospitality

Healthcare

Mining

Industrial Services

Facilities Management

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Finance

Project Management

Risk Management

Labor Relations

Relevant Roles

Human Resources Director

Legal Counsel

Procurement Manager

Operations Manager

Compliance Officer

Finance Director

Project Manager

Contracts Administrator

Risk Manager

Human Resources Manager

Workforce Planning Manager

Labor Relations 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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