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Employee Leasing Agreement for the United Kingdom

Employee Leasing Agreement Template for England and Wales

An Employee Leasing Agreement under English and Welsh law is a legally binding contract between a staffing company (lessor) and a client company (lessee) for the provision of temporary workforce services. The agreement governs the terms under which employees are leased, including employment responsibilities, payment terms, compliance with UK employment laws, and the division of employer obligations. It incorporates provisions from key legislation such as the Employment Rights Act 1996, Agency Workers Regulations 2010, and relevant health and safety regulations.

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What is a Employee Leasing Agreement?

The Employee Leasing Agreement is essential for businesses seeking flexible workforce solutions while ensuring compliance with UK employment law. This document is commonly used when companies need temporary staff but wish to outsource employment administration and legal obligations. The agreement details responsibilities for payroll, benefits, workplace safety, and regulatory compliance, while clearly defining the relationship between all parties. Under English and Welsh law, the agreement must address various legislative requirements including TUPE regulations, Agency Workers Regulations, and data protection obligations. It's particularly valuable for projects requiring specialized skills, seasonal work, or during periods of business expansion.

What sections should be included in a Employee Leasing Agreement?

1. Parties: Identification of the lessor (staffing company), lessee (client company), and any other relevant parties

2. Background: Context of the agreement and business purpose of the employee leasing arrangement

3. Definitions: Key terms used throughout the agreement including 'Leased Employees', 'Services', 'Term', etc.

4. Services and Scope: Detailed description of employee leasing services and responsibilities of each party

5. Term and Termination: Duration of agreement and circumstances for termination

6. Payment Terms: Fees, payment schedule, and related financial obligations

7. Employment Responsibilities: Division of employer obligations between lessor and lessee

8. Compliance Requirements: Legal and regulatory compliance obligations

9. Indemnification: Mutual indemnification provisions and liability allocation

10. General Provisions: Standard boilerplate clauses including governing law, notices, etc.

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

1. Insurance Requirements: Specific insurance coverage requirements when additional insurance protection is needed

2. Intellectual Property Rights: IP ownership and protection provisions when leased employees may create IP during their work

3. Non-Solicitation: Restrictions on hiring leased employees directly to protect lessor's workforce

4. Data Protection: GDPR and data privacy compliance measures for personal data processing

5. International Provisions: Cross-border employment considerations for international employee leasing arrangements

What schedules should be included in a Employee Leasing Agreement?

1. Schedule of Leased Employees: List of employees being leased, their roles and qualifications

2. Fee Schedule: Detailed breakdown of fees and charging structure

3. Service Level Agreement: Performance metrics and service standards

4. Workplace Policies: Relevant workplace policies applicable to leased employees

5. Health and Safety Procedures: Safety protocols and procedures

6. Required Forms and Documentation: Templates for necessary documentation and reporting

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

England and Wales

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions






























Clauses































Industries

Employment Rights Act 1996: Primary legislation governing employment rights, including basic employment rights, terms and conditions of employment, and protection of wages

Agency Workers Regulations 2010: Regulations protecting agency workers' rights, including equal treatment provisions, day-one rights and 12-week qualifying period rights

Transfer of Undertakings (Protection of Employment) Regulations 2006: TUPE regulations protecting employees during business transfers, including preservation of terms and conditions, and consultation requirements

Equality Act 2010: Legislation ensuring equal treatment and preventing discrimination in the workplace, covering all protected characteristics

Working Time Regulations 1998: Regulations governing working hours, rest breaks, and holiday entitlements for employees

National Minimum Wage Act 1998: Legislation establishing minimum wage requirements and payment obligations for employers

Health and Safety at Work etc. Act 1974: Key legislation defining workplace safety obligations and employer responsibilities for maintaining a safe working environment

Data Protection Act 2018 and UK GDPR: Laws governing personal data handling, privacy requirements, and data transfer between parties in employment relationships

Immigration, Asylum and Nationality Act 2006: Legislation requiring right to work checks and establishing immigration status requirements for employment

Social Security Contributions and Benefits Act 1992: Law governing National Insurance contributions and statutory benefits in employment relationships

IR35 Legislation: Tax legislation affecting off-payroll working rules and employment status determinations

Pensions Act 2008: Legislation establishing auto-enrollment pension requirements and employer obligations for workplace pensions

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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