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Recruitment Agreement Template: Hiring Services and Fees
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Recruitment Agreement Template
This Recruitment Agreement is made on [Date] by and between:
Client: [Company Name / Full Name]
Address: [Address]
Recruiter / Agency: [Company Name / Full Name]
Address: [Address]
1. Services
The Client engages the Recruiter to provide the following recruitment services:
[candidate sourcing]
[resume screening]
[initial interviews]
[candidate referrals]
[market search support]
[other recruiting services]
The Recruiter will perform only the services described in this Agreement unless the parties agree otherwise in writing.
2. Positions Covered
The Recruiter will assist with hiring for the following position or positions:
[Job Title]
[Department or Team]
[Location]
[Employment Type: Full-Time / Part-Time / Contract / Temporary / Other]
Additional position details, if any:
[Insert details]
3. Candidate Submission
The Recruiter may submit candidates to the Client by:
☐ email
☐ applicant tracking system
☐ written candidate profile
☐ other: [Describe]
A candidate will be considered introduced by the Recruiter only if the Recruiter first submits the candidate’s information to the Client in a verifiable manner.
If the Client already knows or is already considering the candidate, the Client shall notify the Recruiter within [Number] days of submission.
4. Fee Structure
The Client shall pay the Recruiter as follows:
☐ contingency fee of [Percentage]% of the candidate’s first-year base salary
☐ flat placement fee of [$Amount]
☐ retained search fee of [$Amount]
☐ hourly recruiting fee of [$Amount] per hour
☐ other fee structure: [Describe]
For fee purposes, compensation shall include:
☐ base salary only
☐ base salary plus guaranteed bonus
☐ total first-year guaranteed cash compensation
☐ other: [Describe]
5. When Fee Is Earned
A placement fee is earned if the Client hires, engages, or otherwise retains a candidate introduced by the Recruiter for:
☐ employment
☐ contract work
☐ consulting work
☐ affiliate or related company placement
☐ other: [Describe]
Candidate ownership period after introduction:
[Number] days or months
6. Payment Terms
Invoices shall be paid:
☐ upon candidate start date
☐ within [Number] days after invoice date
☐ according to the following schedule: [Describe]
Late payment terms, if any:
[Insert terms]
7. Replacement or Refund Terms
If a placed candidate leaves employment or engagement within [Number] days after the start date, the Recruiter shall provide:
☐ one replacement search at no additional fee
☐ partial fee refund of [Percentage]%
☐ full fee refund
☐ other: [Describe]
Replacement or refund terms do not apply if the candidate leaves because of:
[layoff / role change / client breach / non-payment / relocation / other stated reason]
8. Client Responsibilities
The Client agrees to:
provide accurate job descriptions and hiring requirements;
respond to candidate submissions in a timely manner;
inform the Recruiter of interviews, offers, and hiring decisions;
pay agreed fees when due;
notify the Recruiter if a submitted candidate is hired or engaged.
9. Recruiter Responsibilities
The Recruiter agrees to:
use reasonable efforts to identify suitable candidates;
present candidate information in good faith;
maintain confidentiality as required by this Agreement;
avoid knowingly submitting false or misleading candidate information;
communicate progress as reasonably needed.
10. Exclusivity
This recruitment arrangement shall be:
☐ exclusive
☐ non-exclusive
☐ exclusive only for the following position(s): [Describe]
If exclusive, the Client agrees not to use another recruiter for the covered position(s) during the exclusivity period of [Number] days or months unless otherwise agreed in writing.
11. Confidentiality
Each party may receive confidential information relating to hiring plans, compensation, business operations, candidate information, or internal records.
Each party agrees not to disclose or misuse confidential information except as needed to perform this Agreement or as required by law.
12. Compliance
Each party agrees to comply with applicable employment, privacy, anti-discrimination, and data-handling requirements related to recruiting activities.
The Client remains responsible for its final hiring decisions, employment terms, and workplace compliance obligations.
13. Independent Contractor Status
The Recruiter is acting as an independent contractor and not as an employee, partner, or agent of the Client unless otherwise stated in writing.
The Recruiter is responsible for its own taxes, staffing, business expenses, and internal operations unless this Agreement states otherwise.
14. Term and Termination
This Agreement begins on [Start Date] and continues until [End Date], unless ended earlier under this Agreement.
Either party may terminate this Agreement:
☐ on [Number] days’ written notice
☐ immediately for material breach
☐ after completion of the search or placement
☐ under the following additional terms: [Describe]
Termination does not affect fees already earned under this Agreement unless otherwise stated in writing.
15. Governing Law
This Agreement shall be governed by the laws of the state of [State].
16. Entire Agreement
This Agreement contains the full understanding between the parties regarding the recruitment services described above and replaces prior discussions on the same subject unless otherwise stated in writing.
17. Signatures
Client Signature: __________________________
Name: [Full Name]
Title: [Job Title]
Date: [Date]
Recruiter Signature: __________________________
Name: [Full Name]
Title: [Job Title]
Date: [Date]
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Recruitment Agreement Template: Hiring Services and Fees
RECRUITMENT AGREEMENT TEMPLATE FAQ
What is a recruitment agreement?
A recruitment agreement is a written contract between a client and a recruiter or staffing agency that explains the hiring services to be provided. It usually covers the types of roles being filled, candidate sourcing, submission procedures, fees, replacement terms, and the responsibilities of both sides. It helps set clear expectations before recruiting work begins.
Why do you need a recruitment agreement?
You need a recruitment agreement to clearly define the hiring relationship and reduce misunderstandings. It helps explain what positions are covered, how candidates will be introduced, when placement fees are earned, and what happens if a candidate leaves shortly after being hired. A written agreement also helps with recordkeeping, approvals, and payment terms.
When should you use a recruitment agreement?
Use a recruitment agreement when a company hires a recruiter, headhunter, or staffing agency to help identify, screen, and refer candidates for employment or contract roles. It is commonly used for direct-hire recruiting, executive search, contingency recruiting, retained search, and specialized hiring support.
How to write a recruitment agreement?
Start with the names of the client and recruiter, then describe the recruiting services and the positions covered. After that, include candidate submission rules, fee structure, payment timing, replacement terms, confidentiality obligations, and compliance expectations. Finish with termination rights, governing law, and signatures so the agreement is clear and ready to use.
Can AI Lawyer help if hiring managers, recruiters, and finance teams all need to review?
AI Lawyer can help by organizing the agreement into clear sections so each reviewer can find the relevant details quickly. It can also add internal reference fields, placement notes, and placeholders that make updates easier to track. A consistent structure helps reduce repeated edits and lowers the chance of missing key details like fee triggers, candidate ownership periods, replacement terms, or invoice dates before the agreement is signed.
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