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HR Outsourcing Agreement Template for Nigeria

A comprehensive agreement governed by Nigerian law that establishes the terms and conditions for outsourcing human resources functions to an external service provider. The document covers essential aspects including service scope, performance metrics, data protection compliance under NDPR, payment terms, and service provider obligations while ensuring alignment with Nigerian labor laws and regulations. It includes provisions for confidentiality, liability allocation, dispute resolution, and termination procedures, tailored to the Nigerian business environment and legal framework.

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What is a HR Outsourcing Agreement?

This HR Outsourcing Agreement is designed for use when a company operating in Nigeria wishes to delegate its human resources functions to a specialized external provider. The document is structured to comply with Nigerian labor laws, data protection regulations (NDPR), and business practices while protecting both parties' interests. It covers crucial elements such as service scope, performance standards, confidentiality obligations, and risk allocation. The agreement is particularly relevant for companies seeking to optimize their HR operations through professional outsourcing, whether for complete HR function management or specific services like payroll, recruitment, or training. This comprehensive document ensures clear delineation of responsibilities, establishes performance metrics, and includes provisions for data protection and service transition.

What sections should be included in a HR Outsourcing Agreement?

1. Parties: Identification of the Client company and the HR Service Provider, including their registered addresses and company details

2. Background: Context of the agreement, including the Client's desire to outsource HR functions and the Provider's expertise

3. Definitions: Key terms used throughout the agreement, including Services, Deliverables, Client Data, Confidential Information, etc.

4. Scope of Services: Detailed description of HR services to be provided, including core responsibilities and deliverables

5. Service Provider's Obligations: Key responsibilities and commitments of the HR service provider, including compliance with laws and professional standards

6. Client's Obligations: Responsibilities of the client, including providing necessary information and access

7. Data Protection and Confidentiality: Obligations regarding handling of personal data and confidential information in compliance with NDPR

8. Service Levels: Performance standards, KPIs, and measurement criteria

9. Fees and Payment Terms: Pricing structure, payment schedule, and related financial terms

10. Term and Termination: Duration of agreement, renewal terms, and termination provisions

11. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

12. Dispute Resolution: Process for resolving disputes, including applicable law and jurisdiction

13. General Provisions: Standard clauses including force majeure, notices, assignment, and entire agreement

What sections are optional to include in a HR Outsourcing Agreement?

1. International Services: Additional provisions for managing international workforce, including immigration compliance - include when services involve expatriate employees

2. Specialized Training: Specific provisions for training services - include when provider will conduct employee training programs

3. Recruitment Services: Detailed provisions for recruitment and talent acquisition - include when recruitment is part of services

4. Transition Services: Provisions for transition of services from existing providers or back to client - include when complex service transition is involved

5. Business Continuity: Disaster recovery and business continuity requirements - include for critical HR services

6. Compliance with Industry Standards: Specific industry compliance requirements - include when client operates in regulated industries

What schedules should be included in a HR Outsourcing Agreement?

1. Schedule 1 - Services Description: Detailed breakdown of all HR services to be provided

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics and measurement criteria

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 NDPR

5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation

6. Appendix A - Required Reports: List and format of required regular reports

7. Appendix B - Key Personnel: List of key personnel from both parties

8. Appendix C - Security Requirements: IT and physical security requirements for handling client data

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use

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