The Labour Only Subcontractor Agreement is essential for businesses operating in India that need to engage workers through subcontractors while ensuring compliance with local labor laws. This document type is commonly used when a company requires workforce flexibility without directly employing workers, particularly in sectors such as construction, manufacturing, and industrial projects. The agreement must comply with various Indian regulations, including the Contract Labour (Regulation and Abolition) Act, 1970, Employees' Provident Funds Act, and other relevant labor laws. It addresses critical aspects such as worker welfare, statutory benefits, safety requirements, and proper documentation of the subcontracting relationship. The agreement is structured to protect both the main contractor and subcontractor while ensuring workers' rights are maintained according to Indian law.
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1. Parties: Details of the Contractor and Subcontractor, including registered addresses and company registration numbers
2. Background: Context of the agreement and brief description of the project or work requirement
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of the labor services to be provided by the Subcontractor
5. Term and Duration: Period of the agreement, including start date and duration
6. Subcontractor Obligations: Key responsibilities and duties of the Subcontractor, including compliance with labor laws
7. Contractor Obligations: Key responsibilities and duties of the main Contractor
8. Payment Terms: Payment rates, schedule, and method of payment
9. Worker Management: Provisions regarding worker supervision, attendance, and performance management
10. Compliance with Laws: Obligations to comply with relevant labor laws and maintaining necessary registrations/licenses
11. Health and Safety: Safety requirements and responsibilities for worker welfare
12. Insurance and Indemnity: Insurance requirements and indemnification provisions
13. Confidentiality: Protection of confidential information and trade secrets
14. Termination: Conditions and process for agreement termination
15. Dispute Resolution: Process for resolving disputes between parties
16. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Performance Standards: Specific performance metrics and quality standards - include when project requires specific quality measurements
2. Equipment and Tools: Provisions regarding supply and maintenance of equipment - include when relevant to the scope of work
3. Training Requirements: Specific training obligations - include for specialized work or high-risk activities
4. Site Access and Security: Rules for accessing work sites - include for sensitive or secure locations
5. Accommodation and Transport: Provisions for worker accommodation and transport - include for remote locations or interstate workers
6. Environmental Compliance: Environmental protection measures - include for environmentally sensitive work
7. Intellectual Property: IP rights and obligations - include when workers may create or handle IP
8. Non-Compete: Restrictions on competition - include when protecting business interests is crucial
9. Force Majeure: Provisions for unforeseen circumstances - include based on project risk assessment
1. Schedule 1 - Scope of Work: Detailed breakdown of labor services to be provided
2. Schedule 2 - Rate Card: Detailed breakdown of labor rates and payment terms
3. Schedule 3 - Worker Categories and Qualifications: List of worker categories and required qualifications
4. Schedule 4 - Health and Safety Requirements: Specific safety procedures and requirements
5. Schedule 5 - Compliance Certificates: List of required statutory registrations and certificates
6. Schedule 6 - Performance Metrics: Detailed performance standards and measurement criteria
7. Appendix A - Worker Documentation: Templates for worker documentation and records
8. Appendix B - Required Forms: Standard forms for various processes (attendance, incidents, etc.)
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