The HR Outsourcing Contract Agreement is essential for companies operating in the UAE that wish to delegate their human resources functions to specialized service providers. This document is particularly relevant in the context of the UAE's complex labor law environment, where compliance with local regulations, including Emiratisation quotas and visa requirements, is crucial. The agreement typically becomes necessary when companies seek to optimize their HR operations, reduce administrative burden, ensure regulatory compliance, or access specialized HR expertise. It covers comprehensive aspects of HR management, including recruitment, payroll, benefits administration, employee relations, and compliance reporting, while ensuring alignment with UAE Federal Law No. 33 of 2021 and related regulations.
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1. Parties: Identification of the service provider and client company, including their registered addresses and license details
2. Background: Context of the agreement and brief description of the parties' business activities
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Scope of Services: Comprehensive description of HR services to be provided, including core responsibilities and deliverables
5. Service Provider's Obligations: Detailed obligations including compliance with UAE labor laws, maintaining confidentiality, and service delivery standards
6. Client's Obligations: Client responsibilities including providing necessary information, access, and cooperation
7. Fees and Payment Terms: Detailed fee structure, payment schedule, and invoicing procedures
8. Term and Termination: Duration of the agreement, renewal terms, and termination provisions
9. Compliance and Regulatory Requirements: Obligations regarding UAE labor laws, immigration regulations, and Emiratisation requirements
10. Data Protection and Confidentiality: Provisions for handling sensitive employee data and maintaining confidentiality
11. Service Levels and Performance Metrics: Specific performance standards and measurement criteria
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Dispute Resolution: Procedures for resolving disputes under UAE law
14. General Provisions: Standard clauses including notices, amendments, and governing law
1. Transition Services: Details of transition arrangements when taking over or handing over HR functions - include if there's an existing HR setup
2. Insurance Requirements: Specific insurance coverage requirements - include for high-risk industries
3. Business Continuity: Disaster recovery and business continuity provisions - include for critical HR functions
4. Intellectual Property Rights: IP ownership and licenses - include if proprietary HR systems or tools are involved
5. Anti-Corruption Compliance: Specific anti-corruption provisions - include for multinational companies
6. Force Majeure: Provisions for unforeseen circumstances - include based on risk assessment
7. Subcontracting: Terms for engaging subcontractors - include if subcontracting is anticipated
1. Schedule 1 - Scope of Services: Detailed breakdown of all HR services to be provided
2. Schedule 2 - Service Levels: Specific performance metrics, KPIs, and measurement methodology
3. Schedule 3 - Fee Schedule: Detailed pricing structure and payment terms
4. Schedule 4 - Data Processing Agreement: Specific terms for handling personal data in compliance with UAE regulations
5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation
6. Schedule 6 - Key Personnel: Details of key team members and their roles
7. Appendix A - Required Reports: List and formats of required regular reports
8. Appendix B - Compliance Checklist: Checklist of UAE labor law and regulatory compliance requirements
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