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If you are a labour hire business in New Zealand, you’ll need a Labour Hire Agreement.
In a labour hire business, staff are provided to other businesses on-demand. However, you’re still the one who pays the staff — so it operates differently from traditional recruitment agencies.
Unlike a recruitment agency, in labour hire businesses, you maintain a continued relationship with staff once they’re placed within a workplace. For instance, you’ll continue to have Health and Safety at Work responsibilities to these staff, and you’ll be responsible for paying the staff (along with other employer obligations).
What Is A Labour Hire Agreement?
A Labour Hire Agreement is crucial to ensure that the pay rates, rights, and responsibilities of all parties involved are clearly defined. It also addresses issues like liability, indemnification, and more.
A Labour Hire Agreement essentially forms the contract between you and the businesses who would like to ‘hire’ your staff on-demand.
Labour hire can be complex, so you want to make sure that you’re doing it correctly.
This is where a Labour Hire Agreement comes in to safeguard your interests.
When you send staff (who are technically your employees) to another workplace, it leaves room for potential issues. Ultimately, you’ll still be responsible for paying those employees — so you want to ensure that the businesses understand and agree to your terms.
What Is Included In A Labour Hire Agreement?
A Labour Hire Agreement will include clauses concerning liability, dispute resolution, payment details, indemnification, and the rights and responsibilities of everyone involved.
Need Help?
At Sprintlaw, our lawyers are well-versed in New Zealand’s labour hire requirements and have drafted many Labour Hire Agreements for a variety of entities.
Don’t hesitate to give us a call on 0800 002 184 or email us at [email protected] to find out more. Our friendly team of legal consultants are available for a free, no-obligations chat to discuss your options.
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