Recruiting Services Agreement: Definition & Sample

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What is a Recruiting Services Agreement?

A recruiting services agreement defines the responsibilities of both parties concerning professional recruitment services. A contract for this service is typically drawn up when an employer hires a recruitment agency to find candidates for employment.

The main difference between an employment agency and a recruitment agency is that, while agencies can provide candidates, they cannot offer or negotiate salaries on behalf of employers. Therefore, once a business has found its perfect candidate through the recruiting service, they will need to negotiate with the new employee directly about salary and other matters.

Common Sections in Recruiting Services Agreements

Below is a list of common sections included in Recruiting Services Agreements. These sections are linked to the below sample agreement for you to explore.

Recruiting Services Agreement Sample

This Staffing Services Agreement (“Agreement”) is entered into on this 16 day of June, 2006, by and between BBI International (“BBI”), a Colorado corporation, and E Energy Adams (“Client”).

WHEREAS, BBI is engaged in providing staffing services and BBI desires to be engaged by Client, all on the terms and conditions of this Agreement; and

WHEREAS, Client desires to engage BBI to provide staffing services from time to time and BBI desires to be engaged by Client on the terms and conditions of this Agreement; and

WHEREAS, As used herein, the term “Candidate” means a person BBI has submitted to Client for consideration as a potential employee by Client.

THEREFORE, in consideration of the premises and mutual promises contained herein, the parties agree as follows:

This Agreement shall commence on the date this Agreement is executed by all parties, and continue for an initial term of one (1) year, and shall continue thereafter (on a month-to-month basis) unless terminated in writing by either party.

BBI will provide staffing and recruiting services from time to time as requested by Client. It is understood that under this Agreement all services provided by BBI will be provided on a contingency basis. Contingency Staffing Services are defined as follows: Upon request from Client, BBI will source, recruit, screen, and deliver Candidates as directed by Client. BBI is responsible for all costs associated with sourcing, screening, and recruiting of Candidates. Client is not responsible for payment to BBI unless Client has hired a Candidate delivered by BBI.

Client agrees to pay BBI 25% of the first year annual salary, including guaranteed bonuses, for any Candidate BBI has supplied to Client that Client has hired as an employee. BBI’s minimum placement fee is $10,000. BBI will invoice Client for said amount within 10 days of the Candidates first day of employment. Payment in full for invoice(s) shall be due within 30 days from invoice date.

Resumes submitted to Client are confidential and for Client use only. Client agrees that BBI is the representative of all Candidates for which resumes are submitted to Client by BBI. Accordingly, Client agrees that if any Candidate submitted to Client by BBI is hired either directly or indirectly by Client within three hundred sixty five (365) days of the receipt of resume, Client agrees to pay to BBI as liquidated damages an amount equal to 25% of the employees first year annual salary, including guaranteed bonuses.

If, within 90 days of the Candidates starting date, Client is dissatisfied with the performance of the Candidate, and Client wishes to terminate Candidate employment, Client shall not be required to pay BBI fees associated with that Candidate and BBI agrees to refund any payments made by Client for said Candidate. Client must notify BBI within the initial 90-day period, specifying the reasons for its dissatisfaction and termination. BBI agrees, if requested by Client, to conduct a new search to replace the Candidate that has been terminated.

BBI recognizes that while performing its duties under this Agreement, BBI may be granted access to certain proprietary and confidential information regarding Client’s business, customers, and employees. BBI agrees to keep such information confidential and the obligations of this paragraph will survive the termination of this Agreement. This

paragraph does not apply to information that was previously known or information that is available in the public domain.

This Agreement may be amended, waived, changed, modified or discharged only by an agreement in writing signed on behalf of all parties by the authorized representatives executing this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

Reference:
Security Exchange Commission - Edgar Database, EX-10.4 5 c07810exv10w4.htm CONTINGENCY STAFFING SERVICES AGREEMENT, Viewed January 27, 2022, View Source on SEC.

Who Helps With Recruiting Services Agreements?

Lawyers with backgrounds working on recruiting services agreements work with clients to help. Do you need help with a recruiting services agreement?

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