Establishing secure connection…Loading editor…Preparing document…

Employment Labour Hire Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYMENT LABOUR HIRE AGREEMENT

This Employment Labour Hire Agreement (the Agreement) is entered into by and between:

Labour Hire Agency:

Agency Representative:

Worker / Employee:

Host Employer (assignment location):

1. Definitions

In this Agreement, unless the context requires otherwise: "Agency" means the Labour Hire Agency identified above; "Worker" means the individual engaged by the Agency to perform Services; "Host" or "Host Employer" means the third party to which the Worker is assigned to perform Services; "Services" means the labour and related duties to be performed by the Worker under assignments arranged by the Agency.

2. Engagement and Assignment

The Agency engages the Worker and the Worker accepts engagement on the terms set out in this Agreement. The Worker may be assigned to perform Services for one or more Host Employers from time to time. Each assignment will be subject to the terms of this Agreement and any assignment-specific directions provided by the Host Employer.

3. Term

This Agreement commences on and continues until terminated in accordance with clause 12.

4. Position, Duties and Reporting

Job Title: . Department/Unit: .

Reporting Manager at Host:

The Worker will perform duties as directed by the Host and shall comply with the Host Employer's lawful policies and reasonable workplace directions while assigned.

5. Hours of Work and Place of Work

Standard hours per week: . Regular place(s) of work:

Overtime, shift work and other hours will be managed in accordance with applicable award, industrial instrument or law. The Worker must notify the Agency of any disputes about hours immediately.

6. Remuneration and Expenses

Pay rate (gross): . Pay frequency: .

The Agency will make lawful deductions for taxes, insurance and other statutory obligations. Reimbursable expenses must be pre-approved by the Agency and supported by receipts.

7. Payroll, Superannuation and Tax

The Agency is responsible for payroll administration, withholding of applicable taxes and contributions, and making contributions required by applicable law. The Worker must supply accurate tax and identification information to the Agency prior to payment.

8. Workers' Compensation, OHS and Insurance

The Agency maintains workers' compensation coverage for the Worker while engaged under this Agreement. The Worker must comply with all occupational health and safety directions of the Host and report incidents to the Host and Agency immediately.

9. Confidentiality and Intellectual Property

The Worker must keep confidential all proprietary and confidential information of the Agency and any Host Employer during and after the engagement. All intellectual property created by the Worker in the course of performing Services for a Host Employer is assigned to the Host Employer or as otherwise required by law or specific agreement.

10. Background Checks and Authorisations

The Worker authorizes the Agency and Host Employer to conduct pre-employment and periodic background checks, including criminal record checks, employment verification, reference checks and rights-to-work verification as required by law or Host policy.

I consent to the Agency and Host Employer conducting background checks and contacting previous employers and referees as described above.

11. Termination

Either party may terminate this Agreement or any assignment with notice as required by applicable law or, where no minimum notice is mandated, with days' written notice. The Agency may immediately remove the Worker from an assignment for serious misconduct or safety breaches.

12. Liability, Indemnity and Insurance

Each party's liability to the other is limited to the extent permitted by law. The Worker indemnifies the Agency and the Host for losses caused by the Worker's wilful misconduct or gross negligence. The Agency maintains insurance as required by law for the duration of the engagement.

13. Representations and Warranties

The Worker warrants that all information provided to the Agency is true, complete and not misleading. The Worker agrees to notify the Agency promptly of any change to circumstances that may affect the Worker's capacity to perform Services.

14. Equal Employment Opportunity and At-Will Statement

The Agency and Host Employer are equal opportunity employers and base employment decisions on merit and business needs without unlawful discrimination. Where applicable law allows, the Worker acknowledges the engagement is at-will and may be terminated by either party consistent with clause 11.

15. Notices

16. General Provisions

Entire Agreement: This Agreement contains the entire agreement between the parties about the subject matter and supersedes all prior agreements. Governing Law: This Agreement is governed by the laws applicable in the jurisdiction where the Services are performed. If any provision is invalid, the remainder remains enforceable.

PERSONAL INFORMATION

POSITION INFORMATION

EMPLOYMENT HISTORY

EDUCATION

REFERENCES

APPLICANT CERTIFICATION AND AUTHORIZATIONS

I certify that all information provided to the Agency in this Agreement and associated forms is true and complete. I understand that any false, misleading or omitted information may be grounds for withdrawal of an assignment or termination of the engagement. I authorize the Agency and its agents to obtain and verify information from my prior employers, references and educational institutions for purposes of assessing my suitability for assignments.

I authorize previous employers and referees to provide employment information to the Agency.

DATA PRIVACY

The Agency will collect and handle personal information in accordance with applicable privacy laws. Personal information will be used for recruitment, placement and lawful administrative purposes and may be disclosed to Host Employers when necessary for an assignment.

Agency Representative:

By:

Date:

(For and on behalf of the Labour Hire Agency)

Worker / Employee:

By:

Date:

(Individual engaged by the Agency)

Enter text✕

What the Employment Labour Hire Agreement Is and When It Applies

An Employment Labour Hire Agreement is a written contract that sets out the relationship between a labour hire agency, a host employer (the business using labor), and the supplied worker. It describes scope of work, assignment length, payment terms, worker classification, insurance and indemnity, compliance obligations, and reporting duties. In the United States this agreement helps manage payroll, tax withholding, workers’ compensation, and contract risk when a third party supplies labor rather than hiring directly.

Why a Clear Labour Hire Agreement Matters

A clear agreement defines responsibilities, reduces misclassification risk, and allocates liability for payroll taxes, benefits, and insurance. It protects the labour supplier and the host by documenting payment timing, background-check requirements, termination rights, and compliance steps.

Why a Clear Labour Hire Agreement Matters

Which Parties Commonly Use This Agreement

Typical users include staffing firms, host employers that accept temporary staff, and independent contractors engaged through a labour supplier.

  • Labour hire agencies supplying temporary or contract workers to client sites, responsible for payroll and compliance.
  • Host employers that engage third-party workers for short-term projects or seasonal demand, controlling day-to-day work.
  • Contracted workers or subcontractors receiving assignments through an agency, needing clarity on pay and benefits.

Core Elements to Include in a Professional Agreement

A comprehensive Employment Labour Hire Agreement organizes obligations and eliminates ambiguity. Include these six essentials to reduce disputes and to meet regulatory expectations.

Scope of Work

Precise duties, location, schedule, and performance metrics so the host and worker share a single understanding of assigned tasks and deliverables.

Term and Assignments

Start and end dates for each assignment, renewal terms, and notice periods for early termination or reassignment to protect staffing continuity.

Payment Terms

Rate, overtime rules, invoicing cadence, approved reimbursements, and which party pays payroll taxes or withholds federal and state taxes.

Insurance and Indemnity

Workers’ compensation, general liability, and indemnity clauses allocating responsibility for claims, plus required policy limits and certificates of insurance.

Compliance and Background Checks

Requirements for background checks, drug testing, licensing verification, and compliance with wage, hour, and safety laws.

Termination and Remedies

Grounds for termination, cure periods, return-of-property obligations, confidentiality, and dispute-resolution procedures, including governing law.

Quick Walkthrough: Completing the Agreement

Follow these basic steps to create, approve, and execute a labour hire agreement quickly and consistently.

  • 01
    Gather Parties: Collect legal names, EIN/TIN, and contact details.
  • 02
    Define Scope: Describe duties, location, hours, and supervision.
  • 03
    Attach Documents: Include COIs, licenses, and background-check records.
  • 04
    Sign and Distribute: Obtain signatures, distribute copies, and archive.

How to Amend or Update an Existing Agreement

Use a controlled amendment process that preserves the original record and records approvals for compliance and audit purposes.

01

Draft Amendment:

Describe changes and effective date.
02

Legal Review:

Have counsel check tax and labor impacts.
03

Obtain Approvals:

Get sign-off from authorized representatives.
04

Execute Signatures:

Collect dated signatures from all parties.
05

Distribute Updated Copies:

Send new copies to payroll and HR.
06

Archive Records:

Store prior and amended versions securely.

How to Configure an Online Signing Workflow

Configure a digital workflow that matches your approval flow, enforces required fields, and captures an audit trail for each signature event.

Field Configuration
Authentication Require email plus SMS code or ID verification where appropriate
Conditional Fields Show insurance or tax fields only when required by party role
Bulk Send Use templates for repeated assignments and mass distribution
Audit Trail Enable timestamp, IP, and action logs for each signer

Where to Send and File the Executed Agreement

After execution, distribute copies to the parties, payroll, and any third-party administrators, and preserve the signed record in your document management system.

  • Host Employer: Retain original for operational and compliance needs
  • Labour Agency: Keep signed copy for payroll and insurance records
  • Payroll Vendor: Send pay and tax instructions for processing
  • HR/Compliance Files: Archive electronic copy in secure records system

Distribution and eSignature Considerations

Choose a platform that supports secure e-signing, audit trails, and the integrations your payroll and HR systems require.

  • Integrations: Salesforce, NetSuite, Microsoft 365, and HRIS connectors
  • File Formats: PDF and Word DOCX supported for native archiving
  • Authentication: Email, SMS, knowledge-based, or 2FA options

Key Timelines and Processing Expectations

Track effective dates, payroll cutoffs, tax reporting deadlines, and retention triggers to remain compliant and avoid penalties.

Effective Date:

Date the agreement becomes operative and triggers obligations

Payroll Cutoffs:

Submit timesheets before payroll vendor deadlines to avoid delayed pay

Tax Reporting:

Form 1099-NEC to recipients and IRS by Jan 31 (IRS guidance)

I-9 Retention:

Keep I-9 for 3 years after hire or 1 year after termination (8 CFR §274a.2)

Insurance Certificates:

Provide COIs before first placement to verify coverage

Common Mistakes to Avoid

  • Using ambiguous worker classification language that fails to distinguish employees from contractors and increases audit risk.
  • Omitting insurance requirements or failing to collect certificates of insurance before deployment to client sites.
  • Neglecting to record effective dates or assignment end dates, creating disputes about pay and benefits.
  • Failing to capture signed, dated signatures and audit trails for electronic execution and post‑event verification.

Key Risks and Potential Penalties

Misclassification: Back taxes and penalties
Late Tax Filing: 1099 penalties per IRC §6721
I-9 Violations: Civil fines, see 8 CFR §274a.2
Insurance Gaps: Liability for workplace claims
Breach of Contract: Damages and legal costs
Data Privacy Failures: HIPAA or state privacy penalties

Typical eSignature Pricing and Capabilities for Labour Hire Workflows

Compare entry price, trial availability, bulk-sending, audit trails, HIPAA availability, and envelope caps to choose a provider that fits high-volume labour hire workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Yes Yes Yes Yes
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions About Employment Labour Hire Agreements

Answers to common legal, execution, and retention questions for labour hire agreements, including electronic signing and recordkeeping basics.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users