Staffing Agency Contract Template

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A staffing agency contract is a legal agreement between a business and a staffing agency. It defines the rules for how the latter will provide workers to the company. The contract includes job details, the number of workers needed, their pay rate, how long they will work, and who is responsible for paying them and handling taxes. Use a staffing contract template to create the document quickly and ensure no important detail is missing.
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Paper titled "Staffing Agency Contract"; woman talking to a man sitting at the desk

What Is a Staffing Agency Contract?

A staffing agency agreement explains the working relationship between a company and a staffing service. The staffing agency agrees to find and supply employees, while the company must pay a fee in return for the service. This document gives the business confidence that it will get qualified workers and ensures the staffing agency will be paid fairly and on time.

When Should I Use a Staffing Agency Contract?

Contracts for staffing agency are used when a company hires a third-party organization to find new workers instead of recruiting them directly. 

Common situations

  • Cover employee absences, such as medical leave or maternity leave;
  • File seasonal jobs during peak times like holidays or harvest seasons;
  • Find skilled workers quickly for short-term projects;
  • Hire temporary staff for product launches, events, or trade shows;
  • Build a team in a new office or location.

How to Write a Staffing Agency Contract

You can easily create this type of document using a staffing agency contract template. Here is how you can fill it out:

  1. Provide the names, addresses, emails, and phone numbers of both the company and the staffing agency. Use the legal names that appear on official records or licenses.

  2. List each position you want filled. Include job titles, main duties, required experience, certifications, and any physical or language skills needed for the role.

  3. Specify whether the workers are temporary, part-time, full-time, or temp-to-hire. Mention start dates, end dates (if known), work hours, and shift schedules.

  4. Mention how much the company will pay: per hour, per employee, or per project. Include any agency fees, whether it's a fixed rate, percentage of wages, or flat fee. State the billing schedule — weekly, biweekly, or monthly — and include a deadline for payment.

  5. State who pays the workers. Usually, the staffing agency handles wages, tax withholdings, and contributions to benefits or insurance. 

  6. If the workers need training, uniforms, equipment, or travel, explain which side pays for these. 

  7. Describe conditions for agreement termination. A staffing agency contract with clients usually presupposes an advance notice, such as 7 or 14 days. Add any fees for early cancellation, if any.

  8. Choose which state's laws will apply to the contract. Usually, it's the state where the company or agency operates.

  9. The staffing agency contract PDF becomes valid once both parties sign. Include printed names, signatures, job titles for both sides, and the signing date.

State Law

All staffing agencies should comply with state law regulations, according to the US Code, Title 42, Chapter 21 — Civil Rights, Subchapter VI – Equal Employment Opportunities, Sec.2000e quoted below:  

"A staffing agency should comply with various statutes and other laws of each particular State that pertain to hiring workers in a similar manner to private businesses. The staffing agency is not permitted to discriminate based on workers’ gender, age, national origin, religious belief or race. It must also comply with the Americans with Disabilities Act. The staffing agency is also required to comply with all OSHA standards that are related to the job. In many states, staffing agency activity is subject to licensing, and there are certain mandatory requirements to obtain such a license." 

Keep copies of the signed staffing agency contract agreement sample in paper and digital form. They may be needed later for recordkeeping, tax audits, or disputes.

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