Sample Agreement for Recruitment Agency with Split placements Fee Structure

Khushi Dholakia

• 3 min read
Sample Agreement for Recruitment Agency with Split placements Fee Structure

When a company needs to fill a position, they often turn to a recruitment agency to assist with the search. A split placement fee structure is one way that recruitment agencies charge for their services. In this article, we will discuss a Sample Agreement for Recruitment Agency with Split placements Fee Structure.

What is a Split Placement Fee Structure?

A split placement fee structure means that the recruitment agency and the hiring company share the fee for placing a candidate. Typically, the recruitment agency will receive a portion of the fee upfront, and the remaining portion of the fee is paid once the candidate has been successfully placed. This fee structure is common when multiple recruitment agencies are involved in the search, and it encourages collaboration and competition among the agencies.

Sample Agreement for Recruitment Agency with Split Placement Fee Structure

The following is a sample agreement for a recruitment agency with a split placement fee structure. This agreement is intended to provide an example only and should be tailored to the specific needs and requirements of the hiring company and the recruitment agency.

Scope of Services

The agreement should clearly outline the services that the recruitment agency will provide. This may include:

  • Candidate sourcing: The recruitment agency will utilize their network and resources to find suitable candidates for the job opening.
  • Screening: The agency will screen potential candidates based on the job requirements and qualifications.
  • Interviewing: The agency will conduct interviews to assess the candidates’ skills, experience, and cultural fit.
  • Presenting a shortlist: The agency will present a shortlist of qualified candidates to the hiring company.
  • Timelines and reporting: The agreement should specify the expected timeline for the recruitment process and any reporting requirements.

Fee Structure

The split placement fee structure should be clearly outlined in the agreement. The recruitment agency will receive a portion of the fee upfront, and the remaining portion of the fee will be paid once the candidate has been successfully placed. The fee amount may vary depending on factors such as:

  • The type of job opening
  • The level of seniority of the position
  • The volume of positions that need to be filled

The agreement should also specify the percentage split between the recruitment agency and the hiring company, ensuring transparency and fairness.

Candidate Guarantee

To provide assurance to the hiring company, the agreement should include a candidate guarantee. The recruitment agency guarantees that the candidate presented to the hiring company will meet the qualifications outlined in the job description. In the event that the candidate leaves the company within a specified timeframe, the recruitment agency will provide a replacement candidate at no additional charge.

Confidentiality

Maintaining confidentiality is crucial in the recruitment process. Both parties should agree to keep all shared information confidential. This includes candidate information, job descriptions, and compensation details. By ensuring the confidentiality of sensitive information, the recruitment process remains secure and trustworthy.

Termination

The agreement should outline the circumstances under which either party may terminate the agreement. This may include situations such as non-performance by the recruitment agency or changes to the job opening. In case of termination, the hiring company will be responsible for paying the recruitment agency for all services rendered up to the date of termination.

Limitation of Liability

To protect both parties, the agreement should include a limitation of liability clause. The recruitment agency shall not be held liable for any loss, damage, or injury arising from its services, except in cases of gross negligence or willful misconduct. This clause ensures a reasonable and fair distribution of responsibility between the parties involved.

Governing Law and Dispute Resolution

To establish a clear legal framework, the agreement should specify the governing law and the process for dispute resolution. This ensures that both parties are aware of the laws that govern the agreement and how disputes will be resolved, minimizing potential conflicts.

Conclusion

A clear agreement between a recruitment agency and a hiring company is essential to ensure that both parties are aligned regarding the services to be provided and the associated fees. A split placement fee structure is a common approach when multiple recruitment agencies are involved in a search, fostering collaboration and healthy competition. By following the guidelines outlined in this article and tailoring the agreement to the specific needs of the parties involved, a successful recruitment partnership can be established.

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