An employee lease agreement is an agreement between a company and another party whereby the company agrees to contract out the services of some or all of its employees to the other party on specific terms and conditions. The employees are actually employed by a third-party leasing company, but do their work for the company that contracts with the leasing company. In addition to relieving companies of the administrative responsibilities of managing a workforce, leasing employees can also save a company money by reducing the cost of benefits and insurance, to name just two areas. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Professional Employee Lease Agreement This Professional Employee Lease Agreement (this Agreement) is made as of this (date), between ABC, PA, a professional association organized and existing under the laws of the state of (name of state), with its principal office located at (street address, city, state, zip code), referred to herein as ABC, and XYZ, PA, a professional association organized and existing under the laws of the state of (name of state), with its principal office located at (street address, city, state, zip code), referred to herein as the Practice. Whereas, the Practice operates a physician office and is in need of part time employees to provide certain services to it and its patients under the supervision of its physicians, including the provision of glaucoma testing; and Whereas, ABC contracts with qualified employees to provide part time services to physician offices, including glaucoma testing (the Employees); and Whereas, Practice desires to lease Employees from ABC and ABC desires to furnish Employees to Practice on the terms set forth herein; Now, therefore, in consideration of the foregoing and the mutual promises set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 1. Duties and Responsibilities of ABC. A. ABC agrees to lease Employees, as listed on Schedule A hereto, to the Practice to perform such part time services as required by Practice to be supervised by Practice at Practice’s place of business during the intervals set forth on Schedule A hereto (Service Intervals). B. ABC will provide Employees qualified to evaluate Practice’s patients in accordance with established plans of treatment and physician’s written orders. Services provided by Employees will be in accordance with professional standards, the standards of Practice and federal and state regulations and guidelines. C. Employees will operate in accordance with Practice’s policies and procedures. At Practice’s direction, during Service Intervals, Employees will: (i) attend Practice’s staff conferences and (ii) participate in select on-site educational or utilization review programs. D. ABC agrees to pay on behalf of Practice the compensation and benefits of Employees, including all applicable payroll taxes and workers’ compensation and unemployment insurance premiums. E. ABC agrees to maintain and, in accordance with applicable laws, make available to Practice at all reasonable times all records required by any fiscal intermediary, governmental agency, Practice or any other party to whom billings are rendered for services hereunder. 2. Duties and Responsibilities of Practice. Practice is solely responsible for: A. Supervising the performance of Employees, including supervision of both the services accomplished but also of the details and means by which the services are accomplished, to which end Practice may require Employee to wear such uniform and identification badges as are Practice policy for its employees. B. Determining and billing the applicable payer, if any, to which a claim is submitted for Employees’ services, and for ensuring that Practice complies with all coverage, coding, supervision and related requirements under law or contract in submitting any claim for services. C. Providing Employees with vacation and sick leave proportionate to that provided full time employees of Practice and coordinating with ABC to arrange for scheduling of Employees’ vacations. D. Providing Employees with appropriate compliance and other training provided to full time employees of Practice, including training on the provision of services to patients of Practice. E. Providing reimbursement to Employees for pre-approved Practice related expenses. F. Providing all equipment and supplies necessary for Employees to provide services hereunder, provided, however, that Employees shall be responsible for advising Practice as to the inadequacy, disrepair or need for replacement or reorder of such supplies and equipment. 3. Hiring and Firing of Employees. ABC shall have the responsibility to procure qualified persons to serve as Employees hereunder and make such persons available to Practice. Practice shall determine whether such persons may serve as Employees hereunder and shall have the right to terminate any such persons’ employment as an Employee hereunder. In the event a particular Employee resigns his or her employment with Practice, ABC shall have the responsibility to procure qualified replacement candidates as soon as possible. 4. Fees. A. Practice agrees to compensate ABC for Employees in accordance with the Fees listed on Schedule B attached hereto. Fees are due and payable by the first business day of each month. B. Practice agrees to pay invoices within 15 days of ABC’ submission of such invoice or no later than the first day of the month for which billing is made. Invoices not paid within that time shall incur a billing Late Fee in the amount of $10.00 and shall also accrue interest at the rate of ____% per month; provided that, in no event shall interest be charged in excess of the amount permitted by applicable law. Practice agrees to reimburse ABC for any and all costs incurred to collect payment of Services from Practice, including, without limitation, reasonable attorneys’ fees. C. The provisions of Sections 4.A, and 4.B shall survive termination of this Agreement. 5. Term and Termination. A. The term of this Agreement shall commence on the date first written above and shall continue in full force and effect until the first anniversary of such date. Following the initial term, this Agreement shall be automatically renewed for successive one-year terms. At the time of renewal, the fees payable pursuant to t his Agreement may be renegotiated in good faith. B. This Agreement may be terminated by either party, without cause, at the end of the initial term or any renewal term hereof upon written notice given to the non-terminating party within 60 days prior to the end of the initial term or any renewal term, as the case may be. C. In the event of material breach of this Agreement by either party, the non- defaulting party may terminate this Agreement by giving the breaching party 30 days prior written notice, provided that, upon receipt of such notice, the breaching party shall have 30 days to cure such breach. D. Notwithstanding the foregoing, ABC shall have the right to terminate this Agreement immediately: (i) upon Practice's breach of Sections 3.B, 6, 9, 10 or 11; (ii) if any license, permit or approval required for the operation of Practice cannot be obtained or is at any time suspended; or (iii) in the event of voluntary or involuntary bankruptcy or similar insolvency actions by or against Practice. E. Termination of this Agreement shall not affect the rights and obligations of the parties arising prior to the effective date of such termination. In the event, for any reason, this Agreement is terminated prior to the expiration of the first year of the Agreement the parties agree not to re-enter any Agreement with each other for the provision of leased employees until a date of at least one year following the date of this Agreement. 6. Independent Contractor. This Agreement shall not create a joint venture, partnership or other joint business relationship. ABC is not exclusively limited to providing professional employees to Practice, and is entitled to provide employees and/or services to other providers. ABC agrees to indemnify and hold Practice harmless from any and all taxes, penalties and interest arising from ABC' failure to pay, as they become due, al
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