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
You can customise this template for every new client to suit your requirements.
Who is this for?
- Recruitment Agencies
- Recruitment Consultants
- Suitable for all Australian states and territories
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 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 – an 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 – an important legal term
- Events Beyond Control – Force Majeure clause
- Severance – an important legal term
- Governing Law – choice of law clause
- Director Guarantee – if the client is a company
- Fee Schedule – table with a summary of your fees and charges on the last page
Other names for Recruitment Terms of Business
- Recruitment Agreement
- Recruitment Terms and Conditions
- Recruitment Contract
- Service Agreement
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 must 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 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 the introduction fees.
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.