Outsourced HR Services Agreement

Client: [Company Name] · HR Provider: [Company Name] · Effective Date: [Date]

1. Services

Provider will perform the following HR functions for Client: [e.g. payroll processing, benefits administration, employee handbook development, compliance guidance, recruiting support], per the scope in Exhibit A.

2. Employment Relationship

[ ] Client remains the employer of record for all its employees; Provider acts only as an HR services vendor. [ ] This is a co-employment (PEO) arrangement, under which [Provider/Client] is the employer of record for payroll/benefits purposes, as described in a separate co-employment agreement.

3. Fee

[Per-employee-per-month fee of [Amount] / flat monthly fee of [Amount] / percentage of payroll of [%]], invoiced [Frequency].

4. Compliance Responsibility

[Clarify which party is responsible for ensuring compliance with employment laws, given the actual employment structure chosen above — this varies significantly between a pure HR vendor and a true PEO co-employment model.]

5. Data and Confidentiality

Provider will keep employee personal and payroll data confidential and secure, consistent with applicable data privacy law.

6. Term and Termination

This Agreement runs [Term] and either party may terminate with [Notice Period] notice, with a transition plan for handing HR functions back to Client or a new provider.

Client: ______________________ Date: ____________ HR Provider: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. A true PEO co-employment arrangement shifts real legal responsibilities (like being the employer of record for unemployment insurance and workers' comp) in ways a simple HR-vendor relationship does not — confirm which structure is actually being used, since Section 4's answer depends entirely on that distinction.*