What are Recruitment Terms of Business?
Recruitment Terms of Business set out the legal agreement between a recruitment agency and your clients, and how you will recruit candidates.
This contract covers all of the important aspects of your agreement, including:
🔹 the services you will perform for a client
🔹 fees and charges
🔹 your payment terms
For every new client, you can customise this template to suit your requirements.
Do I need a contract?
Yes, absolutely! A contract protects both you and your clients.
You should always have a contract signed before you start a new candidate search for a client. Our template clearly sets out the obligations of both the recruitment agency and the client.
If you operate a recruitment agency, you need to protect your business from being excluded from the agreement between your client and the candidate. If this does happen, you need to make sure you still get paid for the introduction!
Our Recruitment Terms of Business template will help to make sure you get paid for your services. It also covers you in case there is a dispute with a client over your fees.
Are there any other names for Recruitment Terms of Business?
Yes, you might have also heard this contract referred to as a Recruitment Agreement, Recruitment Terms and Conditions or a Client Service Agreement.
All of them are basically the same thing, just different names for the contract you use with your clients.
What does this Recruitment Terms of Business template include?
Our Recruitment Terms of Business template covers everything you need for a recruitment agency contract:
★ Our Responsibilities
★ Client Responsibilities
★ Warranty and Indemnity
★ Terms of Trade
★ Australian Consumer Law
★ Limitation of Liability
★ Replacement Guarantee
★ Intellectual Property
★ Dispute Resolution
Can we be engaged on an exclusive basis?
Yes, we have included a sub-clause in the contract to cover exclusivity. If you want the arrangement to be exclusive, you need to agree in writing with the client. This is a commercial decision, so it’s up to you.
What happens if the candidate or employer terminates their employment ‘early’?
We have included a Replacement Guarantee in the contract to cover this situation.
If a candidate terminates their employment, or the client terminates their employment due to unsatisfactory performance in the role, you are required to look for a replacement candidate at no extra fee (excluding advertising charges). This is an optional clause, you don’t have to keep it.
We have not included a Refund Policy in our Recruitment Terms of Business template, but you could add this if you wish.
Does the Recruitment Terms of Business template include a Director Guarantee?
Yes, we have included a Director Guarantee as an optional clause (if the client is a company).
What happens if we introduce a candidate who is already known to the Client?
We have included a clause in the contract to cover this situation. If the contact was recent, you would normally not earn fees for this introduction.