Employment agency agreement

This document provides two sets of terms and conditions: one for your relationship with applicants seeking jobs and the other with employers or hirers. Use it where the agency advertises positions, finds candidates and screens them. It is the client who eventually employs an applicant. The positions to be filled could be temporary or permanent.

Suitable for use in: England & Wales and Scotland
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About this document

An employment agency needs two sets of terms and conditions: one contract with an employer, client or a hirer and other with a job seeker. This is a pack of both documents.

The documents are carefully drawn by an experienced solicitor to cover not only the legal requirements but your practical commercial matters.

Before you use this agreement, do ensure you are classed as a recruitment or employment agency in law and not an employment business. The two are defined under the Conduct of Employment Agencies and Employment Businesses Regulations 2003.

Broadly speaking an agency introduces work-seekers to clients for direct employment by those employers. This is usually known in the industry as permanent recruitment, even though the employment may only be for a fixed period.

An employment business engages work-seekers under either contracts for services or contracts of employment and supplies those employers to clients for temporary assignments or contracts where they will be under the hirers’ supervision or control.

This is usually known in the industry as the supply of temporary workers.

A company engaged in both permanent recruitment and the supply of temporary workers will fall into the definition of both employment agency and employment business to reflect both sides of the business.

A fuller discussion of the differences can be found here.

Note: this document is suitable for use by an agency. For an employment business, use this agreement. You may need both if your business covers both types of hire.

We have drawn these document templates so that you can post them into T&C on your website or otherwise enter into an agreement. However, if your agency operates online, allows recruiters, applicants and other visitors to post content, you may additionally want to consider our separate website terms document for a recruitment agency.

The law in this document

The law in these T&C is largely common law that deals with the basics of contracts: offer, acceptance, price and payment, provision of service, liabilities and risk. By and large, you can set the terms you want, particularly the commercial ones.

We have taken into account of the Conduct of Employment Agencies and Employment Businesses Regulations 2003.  Our guidance notes will tell you what you can change safely, and what we don't advise changing.

These templates allow you to comply with the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 and Alternative Dispute Regulations 2015, so far as they apply.

So far as the Consumer Contracts (ICAC) Regulations are concerned, there is no impact on your business unless you provide some service to your job seekers, for money. For example, if you provide careers advice, or edit CVs, or offer premium placing, then the regulations do apply.

However, in your contract with client, the Regulations do apply if you introduce applicants to domestic clients who are defined as consumers. A consumer is someone who is not dealing with you in the course of his or her business. If you supply someone with an assistant for his or her business, the employer is obviously not a consumer, but if you supply him or her with a nanny then he or she is one.

In both documents we have provided for this possibility of the Regulations’ application but the drafting notes clearly show how you can delete those provisions if the regulations do not apply.

Features

  • suitable for any recruitment agency, whether you specialise in providing staff for any particular industry or whether you provide all types of workers

  • drawn so as these templates strongly favour the agency but are fair to your counter parties: clients and applicants

  • suitable for the recruitment of temporary and permanent workers

  • set out clearly how your business works and how your counter party should act and behave

  • present a professional image of your business. Our use of plain English helps to ensure that other party do not feel intimidated by overly formal or legalistic language

  • prevent misunderstandings and make solving disputes easier

  • extensive explanatory notes guide you as to how to edit the document to fit your business

Contents

  • Definitions and interpretation
  • Basis of contract between your business and each of recruiters and applicants
  • Relationship of parties
  • Prices for your services
  • Obligations of agency and responsibilities of each of recruiters and applicants
  • Application of Consumer Contracts (ICAC) Regulations 2013
  • Options for re assurance to job seekers that the place of work is safe and insured
  • Terms specific to recruiters / hirer
  • Terms specific to applicants
  • Confidentiality
  • Disclaimers and limitation of liability
  • Miscellaneous legal matters to protect your business
Draftsman

This document was written by a solicitor for Net Lawman. It complies with current English law.

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