This sample agreement is for engaging an employment agent/headhunter (i.e a recruiter who finds employees and receives commission for placing them in employment). If you are looking to recruit an employee or consultant directly then you should use an employment agreement, temporary employment agreement or consultancy agreement instead.
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This Recruitment Strategy Agreement (the “Agreement”) sets out the terms and conditions upon which [Sender.Company] (the “Company”), being a Company duly registered under the laws of [Sender.State] with registered number REGISTERED NUMBER and having its registered address at [Sender.StreetAddress] [Sender.City] [Sender.Country] [Sender.PostalCode] engages [Recruter.FirstName] [Recruter.LastName] (the “Recruiter”), being a Company duly registered under the laws of [Recruter.State] with registered number REGISTERED NUMBER and having its registered address at [Recruter.StreetAddress] [Recruter.City] [Recruter.State] [Recruter.PostalCode] as a recruiter for the [Sender.Company] (together, the “Parties”).
WHEREAS: the main activity of the Company is ACTIVITY
WHEREAS: the Recruiter locates and provides human resources (HR) in this abovementioned area.
WHEREAS: the Company is desirous of engaging the Recruiter to provide recruitment services on such terms as are set out throughout this agreement and the Recruiter for his part is desirous of being engaged by the Company to provide said recruitment and Human Resources (HR) on said terms.
NOW, THEREFORE, IT IS HEREBY AGREED as follows:
In this sample recruitment strategy agreement: ‘the Company’ means the person who will hire the employee and ‘the Recruiter’ means the person who will find the employee (i.e. the employment agent/headhunter).
There is no need to be precise here, more detailed definitions exist in clause 2. This section should include a general description of activity of the Company, for example, “vehicle maintenance”, “medical research”, “software development”, etc.
In this Agreement:
“Territory” shall mean TERRITORY
“Candidate” shall mean any applicant for a Position with the Company.
“Position” shall mean the role for which the Candidate is being Presented based on the Requirements set out in clause 2 of this Recruitment Strategy Agreement.
“Requirements” shall mean the requirements provided to the Recruiter by the Company set out in clause 2 of this Recruitment Strategy Agreement.
“Presentation”, “Presented”, “Present” shall all mean the submission in writing of the Candidate’s particulars to the Company including either his CV or his name or any other information sufficient to uniquely identify he Candidate. The Presentation of a client shall be deemed to have taken place notwithstanding that the Candidate may eventually Sign On for a Position other than that in the contemplation of the Parties at the time of Presentation.1.6 “Sign On” shall mean the execution of an em nployment or consultancy agreement between the Company and the Candidate irrespective of its conditions.
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“Sign On” shall mean the execution of an employment or consultancy agreement between the Company and the Candidate irrespective of its conditions.
“Termination,” “Terminate,” “Terminates” shall all mean the termination of the employment of the Candidate in any of the following circumstances only: resignation by the Candidate, dismissal for breach of contract, dismissal for gross misconduct, failure of the Candidate to begin employment or consultancy notwithstanding the execution of an employment or consultancy agreement.
“Another Agent” shall mean any person representing or purporting to represent the Candidate with or without instruction from the Candidate and whether or not doing so for pecuniary gain and whether or not in the business of recruitment or Human Resources (HR).
“Fees” shall mean the fees set out in Clause 4 of this Recruitment Strategy Agreement.
Unless it is evident from the context and having regards to the generality of the Agreement that a clause intends to mean otherwise: words denoted in the singular only shall include the plural and vice versa; words denoted in any gender shall include all genders; and, terms denoting people or persons shall include both natural and legal persons (such as corporations) and vice versa.
The heading names in the Agreement are provided as reference only and do not form part of the Agreement.
The Agreement may be executed in both English and other languages. If there is a conflict between the agreement in its various translations the English version shall prevail.
The illegality or unenforceability of any clause (or part thereof) shall have the effect of voiding that clause (or part thereof) only and not the entirety of the Agreement.
This Agreement may be executed either in one original or in two counterparts.
The terms of the Agreement shall be deemed to be binding on both Parties based on their respective conduct notwithstanding any error or defect in the execution of the Agreement.
In order to enable the Recruiter to locate suitable Candidates the Company will promptly provide the following information to the Recruiter:
An executive summary of the Company including its areas of operation, samples of their work etc.
A detailed description of the Position including salary, benefits, conditions of employment, place of work and any other relevant considerations.
A detailed description of the desired applicant.
A copy of their human resources (HR) policy, if any.
A sample employment contract detailing the terms on which the Candidate would be engaged.
The Recruiter will use its best endeavours to locate a suitable Candidate and Present this Candidate to the Company. The Recruiter will use its skill, experience in recruitment and human resources (HR) as well as industry knowledge to locate, screen, interview and test Candidates.
The Recruiter may undertake searches for Candidates directly or may outsource this role
to third-parties or networks. Specialist tests such as drug-testing, background-checks and credit-checks are not performed by the Recruiter.
This is the most important clause in this recruitment strategy agreement and it is the most likely to be disputed so it is important to draft it very clearly. Is the recruiter/headhunter paid a fixed fee or a percentage? Or perhaps it has elements of both? Is the recruiter’s fee (or any part of it) conditional upon the Candidate staying in the role for a given time? Is the payment due to the headhunter even if no Candidate is found? We include examples: the sum of USD 10,000 (ten thousand dollars) at Sign On; 15% of the Candidate’s annual salary at Sign On; the sum of USD 5,000 (five thousand dollars) payable on signing of this Agreement and 20% of the Candidate’s annual salary at Sign On; the sum of USD 10,000 (ten thousand dollars) at Sign On and 20% of the Candidate’s salary once they have spent six months in employment with the Company.