Staffing Agency Contract Template

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A Staffing Agency Agreement is a contract between a staffing firm and a client company outlining the terms of employee recruitment and placement. It is used to define responsibilities, payment structures, and legal obligations between both parties.

STAFFING AGENCY CONTRACT

This Staffing Agency Contract (the "Contract") is entered into on   (the "Effective Date") by and between 

 , a company incorporated under the laws of the State of  , having its registered place of business at   duly represented by   (hereinafter referred to as the "Client"), and 

 , an individual having their usual place of living at   (hereinafter referred to as the "Service Provider"), collectively referred to as the "Parties" and individually as the "Party".

WHEREAS the Client requires qualified candidates to fill specific job opening(s) or temporary position(s);

WHEREAS the Service Provider specializes in candidate sourcing and recruitment services and possesses the expertise to identify potential candidates who meet the  qualifications specified herein;

WHEREAS the Client desires to engage the Service Provider to perform services of candidate sourcing and recruitment, intending to select suitable candidates for the available positions, and the Service Provider agrees to perform these services in accordance with the terms and conditions set forth in this Contract;

NOW, THEREFORE, in consideration of the mutual promises and obligations set forth herein, and upon other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties have agreed as follows:

DESCRIPTION OF THE SERVICES. The Service Provider agrees to provide the following candidate sourcing and recruitment services for the Client following the terms and conditions set forth in this Contract (the "Services"):

  • Candidate resumes submission: The Service Provider shall source and submit resumes of potential candidates to the Client for consideration in filling  . The candidates shall meet the following characteristics:  .

PAYMENT TERMS. The Client agrees to pay the Service Provider for the Services performed under this Contract according to the following conditions: 

  • The Client agrees to pay the Service Provider a fixed amount of  . The payment is due within   days before completion of the Services (the "Due Date").

Payment method. The Client shall pay the Service Provider by cash.

Taxes. The Service Provider shall be responsible for covering all taxes related to the Services, including income tax, VAT, and other applicable taxes.

REPRESENTATIONS AND WARRANTIES. The Service Provider represents and warrants that:

  • The Service Provider has the right and authority to enter into this Contract and perform its obligations;
  • The execution and performance of this Contract do not and shall not conflict with or violate any other contract, legal obligation, or contractual arrangement to which the Service Provider is a party;
  • The Service Provider shall comply with all applicable laws, rules, and regulations in connection with fulfilling obligations under this Contract. The Service Provider shall also maintain any licenses, permits, and certifications required to perform the Services.

The Client represents and warrants that:

  • The Client shall provide the Service Provider with detailed and comprehensive information about the vacancy and requirements to the candidate as well as other pertinent details required for the provision of the Services under this Contract;
  • The Client shall facilitate the provision of the Services and maintain communication with the Service Provider to contribute to performing the obligations under the Contract.

Except as expressly provided in this Contract, the Parties do not provide any other representations or warranties, whether express or implied, including but not limited to warranties of merchantability or fitness for a particular purpose.

BACKGROUND CHECKS AND DRUG TESTING

  • Background checks: In accordance with applicable law, the Service Provider may perform background checks on candidates referred by the Client.
  • Drug testing: If required by the Client or applicable law, the Service Provider may facilitate the drug testing of candidates. The associated costs associated with drug testing shall be the responsibility of the Client, and the Service Provider shall furnish the Client with a cost estimate beforehand.
  • Other pre-employment checks: Any additional pre-employment checks, such as skills assessment or reference checks, are executed following the Client's requirements and preferences. The Client shall be responsible for the costs associated with these checks, and the Service Provider shall furnish the Client with an estimate of these costs in advance.

Both Parties shall cooperate promptly to facilitate any required background checks, drug testing, or pre-employment screening to ensure that candidates meet the Client's employment criteria and legal requirements.

TERM OF THE CONTRACT. The Services shall commence on the Effective Date and continue until   (the "Services End Date").

This Contract shall commence on the Effective Date and shall continue until   unless otherwise agreed by the Parties in accordance with the terms of this Contract.

Either Party may terminate this Contract at any time before the termination date, regardless of the cause of termination, by giving the other Party   days prior written notice.

Either Party may terminate this Contract upon providing   days prior written notice to the other Party if the other Party violates this Contract and fails to cure such violation within the specified notice period.

In addition, either Party may terminate this Contract immediately upon written notice to the other Party if the other Party becomes insolvent or files for bankruptcy.

Upon termination of this Contract, the Client shall pay the Service Provider for all Services satisfactorily completed by the Service Provider through the date of termination.

INSURANCE. The Service Provider shall maintain the following insurance coverage:

  • Workers' compensation insurance: The Service Provider shall obtain and maintain workers' compensation insurance as required by law to protect temporary workers in the event of work-related injuries or illnesses.

DATA PROTECTION. The Parties acknowledge and agree that while performing their obligations under this Contract, they may access, process, or disclose personal data as defined by applicable data protection laws and according to the following:

  • Purpose of data processing: The Parties shall process personal data exclusively for the purpose of fulfilling their obligations under this Contract and for no other purpose unless otherwise provided by law.
  • Compliance with data protection requirements: Each Party shall comply with all applicable data protection laws and regulations during the processing of personal data. This includes but is not limited to ensuring the security, confidentiality, and integrity of personal data and guaranteeing that data subjects receive any necessary notices and rights.
  • Termination: Upon termination or expiration of this Contract, each Party, upon the request of the other Party, shall return or securely destroy all personal data unless retention is required by applicable law.

CONFIDENTIALITY. The Parties agree to keep all information disclosed during this Contract confidential and not to share such information with any third party unless required by law. The Parties agree not to use the confidential information for any purpose other than what is necessary to fulfill their obligations under this Contract.

This confidentiality clause shall remain in effect after the termination or expiration of this Contract.

NON-SOLICITATION. During the term of this Contract and for   after its termination or expiration, the Client agrees not to solicit, hire, or engage, either directly or through third parties, any employee or candidate referred by the Service Provider without obtaining prior written consent from the Service Provider.

In case the Client engages, hires, or enters into a contract with any candidate recommended by the Service Provider during the designated non-solicitation period, the Client undertakes to immediately notify the Service Provider in writing of any employment or engagement of candidates placed by the Service Provider within   days of such employment or engagement and pay the Service Provider under the terms of this Contract.

If the Client fails to notify the Service Provider of candidate placement as specified in this Contract, the Client shall pay the Service Provider a penalty of   for each candidate referred by the Service Provider hired or engaged in violation of this non-solicitation clause.

LIABILITY AND INDEMNIFICATION. The Service Provider agrees to indemnify and hold harmless the Client from and against any claims, demands, suits, actions, damages, losses, liabilities, costs, and expenses, including reasonable attorneys' fees, arising out of or in connection with the Service Provider's performance under this Contract. However, if it is determined that both the Service Provider and the Client contribute to the claim through fault or negligence, the Service Provider's indemnification obligation shall be reduced by the percentage of fault attributed to the Client.

FORCE MAJEURE. Neither Party shall be liable for any failure to perform or delay in performing the obligations under this Contract if such failure or delay is caused by events of force majeure, including but not limited to acts of God, war, terrorism, strikes, lockouts, labor disputes, pandemics, epidemics, governmental regulations, or any other similar causes beyond the reasonable control of the affected Party.

In the case of force majeure, the affected Party shall immediately notify the other Party in writing and provide reasonable proof of the cause of the delay or inability to perform the obligations. The Party affected by force majeure shall endeavor to mitigate the consequences of such circumstances and resume the performance of obligations as soon as possible after the circumstances cease to exist.

If the force majeure circumstances last more than   days, either Party may terminate this Contract by giving written notice to the other Party. In this case, neither Party shall be liable to the other Party for any damages arising from the termination of this Contract.

NOTICE. Any notice or communication required or permitted under this Contract shall be sufficiently given if delivered personally or by certified mail, return receipt requested, to the address set forth in the opening paragraph or to such other address as one Party may have furnished to the other in writing, or to emails set forth below:

If to the Client:  

If to the Service Provider:  

Either Party may change the registered mail or email address for receipt of notices by giving written notice to the other Party. The notices shall be deemed received on the day of delivery if sent by hand or courier service or on the third business day after the date of posting if sent by registered mail or email.

GOVERNING LAW AND DISPUTE RESOLUTION. This Contract shall be governed by and construed in accordance with the laws of the State of  , except for its conflict of laws principles. Any disputes relating to this Contract or its breach that cannot be resolved by negotiations between the Parties shall be brought exclusively in the courts located in the State of  . 

SEVERABILITY. The invalidity or unenforceability of any provision of this Contract shall not affect the validity or enforceability of any other provision of this Contract.

WAIVER. The failure of any Party to enforce a particular provision of this Contract shall not constitute a waiver of their right to enforce that provision in the future.

ENTIRE AGREEMENT. This Contract constitutes the entire agreement between the Parties and supersedes all prior or contemporaneous agreements, understandings, negotiations, or discussions, whether oral or written, relating to the subject matter of this Contract. Any amendments or modifications to this Contract must be in writing and signed by both Parties. This Contract does not create a partnership or joint venture between the Parties, and neither Party has the authority to bind the other in any respect.

IN WITNESS WHEREOF, the Parties have executed this Contract as of the Effective Date.

THE CLIENT

THE SERVICE PROVIDER

 

 , USA

Represented by:  

 

Banking Details

Bank name:  

Account number:  

 

__________________________________

(Place for signature)

 

 

 

 , USA

 

Banking Details

Bank name:  

Account number:  

 

__________________________________

(Place for signature)

 .

 

Written by Megan Thompson - Reviewed by Kate Adkham

Template Description

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Paper titled "Staffing Agency Contract"; woman talking to a man sitting at the desk

What Is a Staffing Agency Contract?

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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?

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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

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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

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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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