Employment business: terms and conditions

These is a set of terms and conditions for any employment business to use with clients who hire temporary workers. It ensures that no employer-employee relationship exists between the client and the supplied workers.
Suitable for use in: England & Wales and Scotland
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About this document

This agreement sets the terms under which an employment business will supply one or more people as temporary workers to a client for the purpose of hirer’s agreed work.

The difference between an employment business and an employment agency is discussed in detail here. In summary, the Conduct of Employment Agencies and Employment Businesses Regulations 2003 defines the two as:

  • an agency (often called a recruitment agency) is one that provides staff who are then employed by the client-employer.

  • a business on the other hand, hires the staff itself, who are then seconded or supplied to the client.

An employment business recruits and pays their staff directly. An employee may only work for the client for a short period of time, such as to cover maternity leave, or for a specific event.

An agency simply acts as a matchmaker between people looking for employment and future employers.

Employment businesses often provide:

  • waiters, waitresses and bar staff in the hospitality industry
  • secretarial and administration staff
  • staff that require special training or experience that an employer is unlikely to be able to give, such as in security or nursing
  • labourers and agricultural workers

As well as this document, you may also need a contract for the employees you supply. We provide a zero hours contract as well as other types.

If your business is a recruitment agency, see this document.


  • Description of the parties
  • Summary and purpose of the agreement
  • Hirer’s obligations (for example, no competition, complete indemnity, limitation of liability, undertaking to ensure supply of correct information)
  • Fees and payment strategy
  • Grounds and consequences of termination
  • Disclaimer from any indirect and consequential liability and limitation of the liability
  • Confidentiality
  • Consent for possession and processing of personal data as required under Data Protection Act
  • Mediation as a means of dispute resolution
  • Usual legal provisions to protect your interests

This document was written by a solicitor for Net Lawman. It complies with current English law.

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