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.
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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.
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
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
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
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