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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.222-7002 Compliance with local labor laws (overseas).

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause requires contractors performing work overseas to follow all local labor laws, regulations, and collective bargaining agreements. It also makes the contractor responsible for handling and paying for any claims or lawsuits that arise from alleged violations of those local labor laws, and protects the U.S. Government from such claims. However, the contractor can be reimbursed for fines, penalties, and reasonable litigation costs if they result from following specific contract terms or written instructions from the Contracting Officer.

Applies to: Contractors performing work outside the United States

What it requires

  • Comply with local laws, regulations, and labor union agreements governing work hours.
  • Comply with labor regulations including collective bargaining agreements, workers' compensation, working conditions, fringe benefits, and labor standards or labor contract matters.
  • Indemnify and hold harmless the U.S. Government from all claims arising out of the requirements of this clause.
  • Handle and settle, without cost to the U.S. Government, any claims or litigation concerning allegations of noncompliance with local labor laws or regulations.

Key terms: local laws · collective bargaining agreements · workers' compensation · fringe benefits · indemnify

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 222.7201(a), use the following clause:

Compliance With Local Labor Laws (Overseas) (JUN 1997)

(a) The Contractor shall comply with all—

(1) Local laws, regulations, and labor union agreements governing work hours; and

(2) Labor regulations including collective bargaining agreements, workers' compensation, working conditions, fringe benefits, and labor standards or labor contract matters.

(b) The Contractor indemnifies and holds harmless the United States Government from all claims arising out of the requirements of this clause. This indemnity includes the Contractor's obligation to handle and settle, without cost to the United States Government, any claims or litigation concerning allegations that the Contractor or the United States Government, or both, have not fully complied with local labor laws or regulations relating to the performance of work required by this contract.

(c) Notwithstanding paragraph (b) of this clause, consistent with paragraphs 31.205-15(a) and 31.205-47(d) of the Federal Acquisition Regulation, the Contractor will be reimbursed for the costs of all fines, penalties, and reasonable litigation expenses incurred as a result of compliance with specific contract terms and conditions or written instructions from the Contracting officer.

(End of clause)

Sections it refers to

  • 222.7201 Contract clauses.
  • 31.205-15 Fines, penalties, and mischarging costs.
  • 31.205-47 Costs related to legal and other proceedings.

Sections that refer to it

← 252.222-7001 [Reserved] · 252.222-7003 Permit from Italian Inspectorate of Labor. →

Rule changes for DFARS Part 252

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 252.222-7002 Compliance with local labor laws (overseas) · SpendQuery