- labour supply services
- 19.01.2021
What is Included in a Labor Contract?
As companies continue to grow, their need for additional manpower increases as well. While multi-national companies can afford to allocate and maintain staff dedicated to continuously hiring new employees for their expanding business, small and medium-sized businesses opt to outsource portions of their workforce to a third party labour contractor. This way, they don’t have to spend for housing a dedicated hiring staff and at the same time, they don’t need to go through the long, time-consuming, and costly process of hiring new employees.
Working with a manpower supplier can also give your business more flexibility in terms of the duration and scope of work. That is, you can easily and quickly hire additional manpower as you need them and go on without them whenever you don’t need additional workers. Outsourcing the needed services also allows you to focus on the core tasks, to reduce costs, and get more done in a shorter period of time. It also helps promote business growth. This makes manpower services in Ahmedabad more popular these days.
When outsourcing an additional workforce to a labor contractor, you don’t have to treat the outsourced workers the way you treat your regular employees. Instead, both parties will be bound through a labor contract. Contents of labor contracts greatly vary from company to company. However, each labor contract should at least consist of the general guidelines regardless of your industry or company size. Below are the general guidelines of what should be included in a labor contract.
Length of the agreement
The labor contract should specifically state the time frame of the project. It should include the amount of time needed to complete the job, and the expected date and time of completion as agreed by both parties. For projects that include two or more tasks, the time frames of each task should be clearly stated, too.
Payment and compensation
Money matters are often a cause of dispute between companies and labor suppliers. To avoid costly disputes, it is better to get everything related to payment and compensation penned into the labor contract. Aside from the amount you need to pay for the project cost or labor compensation, the contract should also state the specific date or schedule on which payments need to be made as well as the payment method.
Duties and responsibilities
Another critical item that should be clearly stated in a labor contract and should be described in great detail is the duties and responsibilities not only of the worker but of all the involved parties as well. The deliverables should also be listed in detail in a language or dialect that every party can read and understand.
Defining all duties, responsibilities, and deliverables as clearly as possible can help you avoid unnecessary misunderstandings in the future and it also gives you an idea of what to expect from the labour supply services. It also allows the contractors to know the specifics and scope of the job they need to perform and complete.
Risks and safety
Safety risks can be everywhere and they are more common in the workplace. To protect both parties, the potential risks should be spelled out in the labor contract. These potential risks may include workplace hazards, and possible damage to properties when undertaking a job.
Lastly, the labor contract should contain the signatures of the involved parties. Otherwise, it can be considered null and void.
