Labour Only Contract Template 2026

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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.
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.
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.
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.
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.
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Write the contract in six steps Start with a contract template. Open with the basic information. Describe in detail what you have agreed to. Describe how the contract will end. Say which laws apply and how disputes will be resolved. Include space for signatures.
As defined under Article 106 of the Labor Code, labor-only contracting, a prohibited act, is an arrangement where the contractor, who does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, supplies workers to an employer and the workers recruited are

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