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Labour Only Contract Template

Labour Only Contract Template 2026

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The Labour Only Contract Agreement outlines the terms and conditions for labor services provided by a Contractor to a Client. It includes definitions of key terms, details on the scope of work, compensation, payment terms, contract duration, termination clauses, liability and insurance requirements, confidentiality obligations, dispute resolution processes, and provisions for amendments. The agreement aims to ensure clarity and legal compliance while protecting the interests of both parties.

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What constitutes labor-only contracting?

1. Labor-Only Contracting (LOC) Defined: Labor-only contracting occurs when a contractor merely provides manpower to a principal and lacks substantial capital, investment, or control over the work being performed by the workers.

What is a labour contract?

An agreement between two parties: one party, the employee, agrees to work for the other party, the employer, for a weekly number of hours in return for a wage.

What is a labour only contract?

This contract lets the head contractor manage the entire project but also means they carry more risk. A labour-only contract means the head contractor provides the skilled work but no materials or oversight of the project.

How to write a labour contract?

The following sections can be used as a template for a contract of employment: Names of the parties. The full details of the business, and the employees full name and address. Employment contract start date. Employees job title and description. Workplace. Working hours. Probationary period. Salary. Deductions.

What is the difference between labour only and bona fide?

You are responsible for your workers health and safety on site, which includes labour-only subcontractors. They must adhere to your health and safety policies. Bona fide subcontractors however, are responsible for their own health and safety and should conduct their own risk assessments.