Free template
Free Recruitment Agreement Template
What Is a Recruitment Agreement?
Copy section linkA recruitment agreement is a legally binding contract between a staffing agency and a client (the hiring company). It is used when a business hires recruiting professionals to find candidates for certain full-time positions. The contract defines the details of the cooperation: what kind of candidate is needed, what services the recruiter will provide, what fees the client will pay, and what should happen if the candidate accepts or rejects the employment offer.
The recruitment agreement template is usually drafted and provided to the client by the staffing agency. However, the terms of cooperation are negotiable and discussed with each client individually, based on the position to be filled and the job market situation.
Things You Should Know Before You Use a Recruitment Agreement
Copy section linkA recruitment contract is used when a client needs to hire permanent, full-time employees. It usually covers one or a few positions, but if the client needs to hire multiple employees, the agreement should include detailed requirements for each role that comply with the Fair Labor Standards Act.
If a client needs workers for temporary or project-based work, a staffing agency contract is used instead.
Both parties – the staffing agency and the hiring company – should sign a recruitment agreement before the search process begins. It protects the staffing agency from unpaid fees and situations where clients try to hire candidates directly without paying.
The client and the candidate should communicate only through the agency until the offer of employment is signed.
Some terms of the agreement, such as the non-solicitation clause and the confidentiality clause, remain valid even after the contract period ends. If either party violates these terms, they may face legal consequences.
How to Write a Recruitment Agreement
Copy section linkA standard recruitment agreement should outline all the terms of your cooperation with the client. To draft one, use a recruiting contract template and fill it out by following these steps:
Step 1. Provide the parties' information
Write the date when you and the client start your cooperation and sign the contract.
Add the recruiter's and the client's full legal names and registered business addresses.
Step 2. Define the list of services
In the Subject of the Agreement section, write a list of services the staffing agency is expected to provide to the client. From this list, it must be clear whether you provide end-to-end hiring or only find candidates.
Here are a few examples of what can be added to the list of services in a recruiting agreement:
- Reviewing the job description provided by the client and analyzing the job market.
- Sourcing prospective candidates using the recruiter’s internal databases, professional networks, premium job boards, and passive talent channels.
- Conducting pre-screening and interviews with applicants to define their technical competency, experience, salary expectations, and cultural fit.
- Conducting initial reference checks and verification of the candidates’ professional certifications or academic credentials.
- Coordinating and scheduling all interview stages (phone, virtual, or in-person) between the client and the shortlisted candidates.
- Helping the client create competitive job offers and negotiate employment terms with candidates.
- Maintaining regular communication with both the candidate and the client during the first [e.g., 90 days] of employment to ensure successful integration.
Attach or list the client’s exact expectations from the candidates: required skills, years of experience, salary range, and work location (onsite, hybrid, remote).
Mention that the staffing agency does not guarantee employment. The responsibility for the success of the hiring process falls on the client and candidate, not the recruiter.
State whether the agreement is exclusive or non-exclusive. If it is non-exclusive, explicitly state that the client can cooperate with other agencies, recruiters, or search for candidates through their internal channels.
3. Define financial responsibilities
The agency is typically paid for the candidate’s successful employment (though it is the key purpose of the cooperation), but in some cases, the fee can be paid upfront regardless of outcome.
In the Payment Terms section, state how exactly the fees will be paid – as a percentage of base salary (e.g., 15–25%), a flat placement fee, or an hourly rate. If you choose the first option, specify if the percentage fees apply to first-year base salary only or include signing bonuses and equity packages. It can change the final sum considerably.
Set the fee for the services the recruiter provides, and how and when it will be paid (weekly, monthly, per project completion). If they’re paid based on the result – successful hiring of the candidate – define when the fee is earned: when the candidate signs the offer of employment or when they have their first working day.
Mention who is responsible for paying applicable local sales tax or withholdings, as it depends on the state. Meanwhile, each party pays its taxes. The staffing agency is responsible for covering all their federal, state, and local income taxes, and the client covers all the expenses related to the candidate’s employment..
Discuss what happens if the candidate resigns early. In some cases, clients may request a replacement warranty window. This means that if the hire leaves the position early, typically within 60 to 90 days, the recruiter should find another candidate at no extra charge or refund the client. The recruiter may agree to it only if the client has paid all fees. This rule is not applicable if the candidate leaves the company for reasons that do not concern their professional skills – layoffs or company restructuring.
Here’s how replacement terms may look if the candidate leaves within:
- 30 days: full replacement search at no charge / 80% refund;
- 60 days: replacement / 50% refund;
- 90 days: replacement / 25% refund.
Define the invoice payment schedule (e.g., 30 days from candidate start date) and late fees for overdue invoices.
Step 4. Set the deadlines and termination rules
In the Term of the Agreement section, write the start and end dates of your agreement (or mark it as "ongoing until written cancellation").
Add a specific notice period required if one of the parties decides to end the cooperation early (it is typically up to 30 days). Request written notice of termination to avoid disputes.
Step 5. Agree on how candidates get approved or rejected
In the Approval and Rejection of the Presented Candidate section, mention how many days the client has to review candidates’ profiles and provide feedback. This typically takes no more than 5-7 business days.
Require the client to confirm its decision in writing to ensure no disputes occur in the future.
Step 6. Promise not to solicit candidates
Include a non-solicitation clause where the staffing agency agrees not to poach the client’s employees or submitted candidates for a specific period (usually 12 months). This clause remains valid for the agreed period after the agreement expires and, if violated, may make the breaching party liable for damage.
Step 7. Protect confidentiality of the parties
Your recruitment agreement template should contain a confidentiality clause with a list of restrictions to protect the parties’ sensitive data: trade secrets, internal salary data, and candidates’ personal information. Agree that neither party will make this information public or share it with third parties.
Step 8. Explain your actions in case of force majeure
Add a force majeure clause to clarify how long a force majeure event must last (e.g., 30days) before either party can end the agreement without penalty. Though it may seem like a formality, you can never predict what will happen in the future.
Step 9. Define the governing law
Specify the legal jurisdiction that governs the agreement. Usually, it is the state or county where the staffing agency operates.
Step 10. Date and sign the document
The staffing agency and the client (or their authorized representatives) repeat their business names and addresses.
Both parties should add their handwritten or electronic signatures to make the document legally binding.
Requirements for this document vary by state. Review your state's laws and procedures — or consult a licensed attorney — before using this template to ensure it's valid and enforceable where you live.
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