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 for my recruitment clients?
Yes, definitely! 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.
What does this Recruitment Terms of Business template include?
Our Recruitment Terms of Business template covers everything you need for a recruitment agency contract:
★ Cover Letter – covering letter you can send to new clients along with your terms
★ Services – description of the recruitment services you will provide
★ Our Responsibilities – what you are responsible for
★ Client Responsibilities – what the client is responsible for
★ Warranty and Indemnity – important legal clause
★ Pricing – description of your fees, as per the schedule
★ Terms of Trade – how and when you get paid
★ Cancellation – how either party can cancel the engagement for a particular role
★ Australian Consumer Law
★ Limitation of Liability – to protect you against claims for losses and damages
★ Replacement Guarantee – one-time replacement guarantee for candidates who exit the role early
★ Exclusions – important legal disclaimer
★ Intellectual Property – clause to protect your intellectual property (candidate information)
★ Term – how long you are engaged for
★ Termination – how either party can terminate the agreement
★ Confidentiality – both parties agree to keep confidential information private
★ Dispute Resolution – the process to manage a dispute if a problem arises
★ Variation – covers any amendments or variations to the agreement
★ Waiver – important legal term
★ Events Beyond Control – Force Majeure clause
★ Severance – important legal term
★ Governing Law – choice of law clause
★ Director Guarantee – if the client is a company
★ Fee Schedule – table with summary of your fees and charges on the last page
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 Service Agreement.
All of them are basically the same thing, just different names for the contract you use with your clients.
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. Exclusivity means that the client will not engage any other recruitment agency to recruit on their behalf.
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.
Why should I invest in a quality Recruitment Terms of Business template?
You’ve spent countless hours dedicated to learning how to attract the right clients.
Your heavy financial investments in your own personal growth are slowly but surely paying off.
You’re not going to let all that go to waste with a crappy contract, are you?
The booking process is the most fragile part of the selling process. Don’t let your future clients slip away with a shady contract, pieced together like Frankenstein.
With this contract template, your clients will know you take your business seriously. You’ll stand out from your competition, but best of all, your clients will trust you right from the start.
Does this template cover Labour Hire?
No, unfortunately it is not suitable for Labour Hire. That is different from a standard recruitment agreement.
Is this Recruitment Terms of Business template legally binding?
All of our templates have been drafted by qualified Australian lawyers who hold an Australian legal practicing certificate.
We are affiliated with a commercial law firm based in Sydney.
Can’t I copy terms from someone else or download a free template off the internet?
We don’t recommend this approach for a few reasons:
1. You may be committing copyright infringement, which is against the law.
2. You might accidentally copy terms and conditions from another country – if you end up in court for some reason it might be on the other side of the world.
3. Our template has been drafted by an Australian lawyer to make sure it’s legally binding here in Australia.