Set the legal terms for worker supply and placement arrangements

It helps put the operating rules in writing before placements begin or workers are supplied to a host business. In this area, disagreements often arise over who supervises the worker, when fees are payable, whether a replacement must be provided, what happens if a placement ends early and whether the client can hire the worker directly. A short generic services contract may not deal with those points clearly enough. A dedicated agreement is useful because the commercial and legal risk usually sits in the detail of the working model.

These agreements often cover the supply or introduction model, fee structure, invoicing, timesheets, cancellation, replacement workers, confidentiality, restrictions on direct engagement, liability allocation and termination rights. Depending on the arrangement, they may also address onboarding steps, site rules, insurance expectations, conduct issues, reporting lines and how candidate or worker information is shared between the parties. The document needs to line up with your actual privacy practices, including how information moves through the business, particularly during recruitment, onboarding and placement management.

Important details include whether you are introducing permanent candidates, supplying temporary workers or doing both, who contracts with the worker, who supervises day-to-day work, when fees are triggered and whether there are temp-to-perm conversion scenarios. It also matters whether the host can reject a worker, request a replacement or end an assignment on short notice. The practical working model can be just as important as the contract wording, especially where responsibilities are split across agency, worker and host business.

You can use a template as a starting point, but it may not reflect the mechanics that usually matter in labour hire. Common examples are transfer fees, worker substitution, timesheet approval, cancellation windows, site conduct obligations and the line between an introduction service and ongoing worker supply. Templates also tend to be weak on information-sharing points, even though the legal position depends on the way the business handles information in practice. A tailored agreement is usually more useful where placements are frequent or commercially important.

That depends on how clear the commercial model already is and whether you have existing terms we are adapting. If the arrangement is straightforward and the key points are settled, the process is usually quicker than a matter involving multiple service lines, unusual charging models or detailed operational schedules. Once we have the relevant information, we draft the agreement and work through the included revision rounds. After that, the next step is usually internal approval, negotiation with the client or rollout across future placements.

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