Sample Agreement for Staffing Firm with Temp-to-perm fees Structure
Temp-to-perm placements are becoming increasingly popular for staffing firms and hiring companies alike. This is a type of placement where a temporary worker is hired with the potential to become a permanent employee after a set period of time. In such cases, the staffing firm charges a fee for the temporary placement, as well as a separate fee if the temporary worker is later converted to a permanent employee. In this article, we will discuss a Sample Agreement for Staffing Firm with Temp-to-perm fees Structure.
What is a Temp-to-Perm Fees Structure?
A temp-to-perm fees structure is where a staffing firm charges a fee for providing a temporary worker to a company with the potential for the worker to become a permanent employee. The fee structure typically includes a fee for the temporary placement and a separate fee if the temporary worker is later converted to a permanent employee. The fee may be a percentage of the worker’s hourly rate, a flat fee, or a combination of both.
Sample Agreement for Staffing Firm with Temp-to-Perm Fees Structure
The following is a sample agreement for a staffing firm with a temp-to-perm fees 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 staffing firm.
Scope of Services
The agreement should clearly outline the services that the staffing firm will provide. This may include candidate sourcing, screening, interviewing, and presenting a shortlist of qualified candidates for the job opening. The agreement should also specify the timeline for the staffing process, the duration of the temporary placement, and any reporting requirements.
Fee Structure
The temp-to-perm fees structure should be clearly outlined in the agreement. The staffing firm will charge a fee for providing a temporary worker to the hiring company with the potential to become a permanent employee. The fee for the temporary placement may be a percentage of the worker’s hourly rate, a flat fee, or a combination of both. The fee for the permanent placement, if the worker is later converted to a permanent employee, may also be a percentage of the worker’s hourly rate, a flat fee, or a combination of both. The agreement should also specify any additional fees that may be charged, such as administrative fees, payroll taxes, or benefits.
Conversion Agreement
The agreement should include a conversion agreement, outlining the terms under which the temporary worker may be converted to a permanent employee. This may include a minimum duration of the temporary placement, a performance review, and any other criteria that must be met before the worker can be converted to a permanent employee. The conversion agreement should also specify the fee structure for the permanent placement, if applicable.
Worker Guarantee
The agreement should also include a worker guarantee. The staffing firm guarantees that the temporary worker provided to the hiring company will meet the qualifications outlined in the job description. If the worker is not a suitable fit for the job or leaves the company within a specified timeframe, the staffing firm will provide a replacement worker at no additional charge.
Confidentiality
Both parties should agree to maintain the confidentiality of all information shared during the staffing process, including but not limited to worker information, job description, and compensation information. This ensures that sensitive information is not shared outside of the staffing process.
Termination
The agreement should outline the circumstances under which either party may terminate the agreement. This may include non-performance by the staffing firm, changes to the job opening, or other factors. Upon termination, the hiring company will be responsible for paying the staffing firm for all services rendered up to the date of termination.
Limitation of Liability
The agreement should also include a limitation of liability clause. The staffing firm shall not be liable to the hiring company for any loss, damage, or injury arising from its services, except for losses resulting from its gross negligence or willful misconduct.
Conclusion
In conclusion, a temp-to-perm fees structure is a popular option for staffing firms and hiring companies. When entering into an agreement with a staffing firm for temp-to-perm placements, it is important to clearly outline the scope of services, fee structure, conversion agreement, worker guarantee, confidentiality, termination, and limitation of liability. By doing so, both parties can ensure a successful placement and a mutually beneficial partnership. As with any agreement, it is recommended to seek legal counsel to ensure that the agreement is tailored to the specific needs and requirements of the hiring company and the staffing firm.
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