The Placement Fee Agreement serves as the foundational document governing the relationship between recruitment agencies and their client companies in the United States. This contract type is essential when companies engage external recruitment services for hiring needs. It clearly defines fee structures, payment terms, guarantee periods, and service expectations. The agreement ensures compliance with federal and state employment laws while protecting both parties' interests in the recruitment process. Typically used when engaging professional recruitment services for permanent placements, the document includes specific provisions for different placement scenarios and fee calculations.
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1. Parties: Identification of the placement agency and the client company
2. Background: Context of the agreement and the parties' intentions
3. Definitions: Key terms used throughout the agreement
4. Services: Detailed description of placement services to be provided
5. Fee Structure: Payment terms, calculation methods, and timing
6. Payment Terms: Invoice procedures and payment deadlines
7. Term and Termination: Duration of agreement and termination conditions
8. Confidentiality: Protection of sensitive information
1. Guarantee Period: Terms of replacement guarantee if placed candidate leaves within specified period
2. Exclusivity: Terms of exclusive hiring arrangements between agency and client
3. International Placements: Special terms and conditions for cross-border placements
4. Direct Hire Conversion: Terms and conditions for converting temporary staff to permanent employees
1. Fee Schedule: Detailed breakdown of fee structures and calculations
2. Service Level Agreement: Specific performance metrics and service standards
3. Position Specifications: Detailed requirements and specifications for positions to be filled
4. Guarantee Terms: Detailed terms and conditions of the replacement guarantee
Relevant legal definitions
Clauses
Relevant Industries
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