The Agreement Between Contractor And Principal Employer is essential for businesses operating in India that engage external contractors for various services. This document type is specifically designed to comply with Indian legal requirements, particularly the Contract Labour (Regulation and Abolition) Act, 1970, and other relevant labor laws. It is used when a company (principal employer) needs to formally engage a contractor for providing services such as facility management, security, IT services, or other operational support. The agreement covers crucial aspects including scope of work, payment terms, statutory compliance requirements, worker welfare provisions, and safety standards. It helps protect both parties' interests while ensuring legal compliance and clear operational guidelines.
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1. Parties: Identification and details of the Principal Employer and the Contractor
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided by the Contractor
5. Term and Termination: Duration of the agreement and conditions for termination
6. Contractor's Obligations: Key responsibilities and duties of the Contractor
7. Principal Employer's Obligations: Key responsibilities and duties of the Principal Employer
8. Payment Terms: Details of fees, payment schedule, and invoicing procedures
9. Statutory Compliance: Compliance requirements with relevant labor laws and regulations
10. Insurance and Indemnity: Insurance requirements and indemnification provisions
11. Confidentiality: Protection of confidential information and trade secrets
12. Dispute Resolution: Procedure for resolving disputes between parties
13. Governing Law: Applicable law and jurisdiction
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Non-Compete: Restrictions on Contractor's ability to compete with Principal Employer, used when sensitive business information is involved
2. Intellectual Property Rights: Ownership and rights over IP created during the contract, used when work involves creation of intellectual property
3. Performance Metrics: Specific KPIs and performance standards, used when service quality needs to be measurable
4. Sub-contracting: Terms for engaging sub-contractors, used when sub-contracting is permitted
5. Equipment and Materials: Provisions regarding supply and maintenance of equipment, used when specific equipment is required for services
6. Safety and Environmental Requirements: Special safety and environmental compliance requirements, used in industries with specific safety concerns
7. Training Requirements: Specific training obligations for contractor's personnel, used when specialized skills are required
8. Force Majeure: Provisions for unforeseen circumstances, used when long-term or critical services are involved
1. Schedule A - Scope of Work: Detailed description of services, deliverables, and technical specifications
2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule C - Service Levels: Performance standards, KPIs, and measurement criteria
4. Schedule D - Statutory Compliance Checklist: List of applicable laws and compliance requirements
5. Schedule E - Personnel Details: List of key personnel and their qualifications
6. Schedule F - Equipment List: Details of equipment to be provided by either party
7. Appendix 1 - Safety Guidelines: Detailed safety procedures and requirements
8. Appendix 2 - Required Permits and Licenses: List of necessary permits and licenses to be maintained
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Construction
Information Technology
Facilities Management
Industrial Services
Logistics and Supply Chain
Security Services
Cleaning and Maintenance
Healthcare
Hospitality
Mining
Infrastructure Development
Telecommunications
Oil and Gas
Relevant Teams
Legal
Procurement
Operations
Human Resources
Compliance
Risk Management
Facility Management
Administration
Supply Chain
Project Management
Relevant Roles
Procurement Manager
Legal Counsel
Operations Director
Facility Manager
HR Manager
Compliance Officer
Contract Manager
Project Manager
General Manager
Chief Operating Officer
Risk Manager
Supply Chain Manager
Administrative Manager
Site Supervisor
Vendor Management Specialist
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