Model Recruiting Agreement For Permanent Staffing
AGREEMENT FOR SEARCH, RECRUITMENT, AND PLACEMENT SERVICES
This agreement (“Agreement”) is executed on _________(“Effective Date”) by and between Galaxy Medical Staffing (“Agency”) and _____________________ (“Client”) for the purpose of Agency providing services of searching/recruiting/placement of physician provider(s) (“Candidate” or “Candidates”) for employment to the Client.
DESCRIPTION OF SERVICES: Agency agrees to use its resources to source, recruit, pre-screen and present qualified candidates to Client. Client may, at its discretion, require the Agency to coordinate interviews of candidates, conduct reference checks, and assist with offer presentation and negotiation at no additional charge to Client.
FEES AND EXPENSES: Client agrees to pay a placement fee to the Agency in the amount of 25 % of the candidate’s estimated total first year’s compensation, including estimated commissions and bonuses, and any signing bonus. Such a fee is not subject to reduction even if the candidate’s employment terminates. Client will be obligated to pay such fee whenever
- A candidate referred to Client by Agency is hired, directly or indirectly, for any position, as an employee, consultant, or independent contractor, by Client, its affiliates, parents, or subsidiaries, within 12 months of the most recent activity on behalf of that candidate by Agency or
- A candidate referred to Client by Agency is referred by Client to another employer or recruiting firm and the candidate is hired, directly or indirectly, for any position, as an employee, consultant, or independent contractor, by such employer or through such recruiting firm within 12 months of the most recent activity on behalf of that candidate by Agency.
For the purpose of paragraphs 1 and 2 above, the word “referred” means any manner or means of communication of a candidate’s identity.
In addition to any fees, Client agrees to pay all reasonable Client pre approved expenses incurred by the Agency related to the performance of its services under this agreement.
PAYMENT TERMS: Client agrees to pay all placement fees and related expenses within ____ days after candidate’s start date. Interest of 1% per month will be charged on unpaid fees more than ____ days past due. Client agrees to reimburse the Agency for all reasonable costs of collection, including attorney fees.
VOLUME DISCOUNT: If Client hires multiple candidates referred by the Agency in a calendar year, the fee for all placements in the calendar year after the second placement shall be 20% of the candidate’s estimated total first year’s compensation as mentioned above.
FEE LOOK-BACK: In the event the first year’s compensation of a candidate placed by Agency exceeds the estimated compensation upon which the initial fee was based, Agency shall be entitled to an additional fee of ____ % of such additional compensation. This additional fee shall be paid no later than ____ months [allow time for client to calculate and pay bonus] following the candidate’s first day of employment.
Waiver of Fee Where Candidate Is Already Under Active Client Consideration
If Agency refers a candidate to client with whom client has already interviewed or scheduled an interview, and client so advises Agency within ____ business days following the referral, client will not owe Agency a fee in the event client hires the candidate. client shall provide Agency with documentation at Agency’s request sufficient to establish that the interview has been held or scheduled.
REPLACEMENT GUARANTEE: In the event the employment of a candidate referred to client under this agreement lasts less than ____ calendar days, and if client notifies Agency in writing of the termination within ____ days thereafter, and provided that all fees and expenses relating to such referral have been paid, Agency will attempt to refer a replacement candidate for the same position at no additional charge to client. Agency’s obligation under this agreement is limited to attempting to find a replacement candidate. This provision shall not apply if the candidate is laid off for lack of work, or resigns because the client has significantly modified the candidate’s job duties or assigned him or her to another position. No refund will be made if client hires a replacement from any source, or if client is no longer actively seeking to fill the position.
Or a credit could be offered rather than a refund, as the following example provides:
CREDIT: In the event the candidate’s employment lasts less than ____ calendar days, and if client notifies Agency in writing of the termination within ____ days thereafter, and provided that all fees and expenses relating to such referral have been paid, Agency shall credit ____ % of its fee to each of the next ____ placements it makes with client. This provision shall not apply if the candidate is laid off for lack of work, or resigns because the client has significantly modified the candidate’s job duties or assigned him or her to another position. No refund will be made if client hires a replacement from any source, or if client is no longer actively seeking to fill the position.
BACKGROUND CHECKS: Agency will conduct background checks on candidates as requested by client. Requests must be in writing and must specify the scope of the background check requested. All background checks will be conducted at client’s expense.
CONFIDENTIALITY OF REFERRALS: All candidate referrals made by Agency are made on a confidential basis and Client shall hold Agency harmless from any liability resulting from Client’s unauthorized disclosure or misuse of information regarding any candidates or their candidacy.
CONFIDENTIALITY OF CLIENT INFORMATION: Agency agrees to maintain the confidentiality of any nonpublic proprietary client information that it may obtain in the course of performing services under this agreement and shall hold client harmless from any claim, loss, or liability resulting from Agency’s unauthorized disclosure of such information.
DISCLAIMER: Agency does not guarantee the performance of any candidate or the accuracy of information provided regarding a candidate, and disclaims any responsibility for claim, loss, or liability as a result of a candidate’s acts or omissions. Agency urges Client to conduct such investigations, as it deems necessary to verify candidate information or to obtain such other information, as it may deem relevant.
Client’s acceptance of referrals from Agency, interviewing of candidates referred by Agency, or employment of any such candidates shall constitute Client’s acceptance of the terms and conditions of this agreement.
INDEPENDENT CONTRACTOR: The services provided by the Agency under agreement are provided as an independent contractor. Nothing in this agreement shall be construed as creating the relationship of principal and agent, joint venturers, or employer and employee, between Agency and Client.
ASSIGNMENT: This agreement and all of its provisions are binding on and inure to the benefit of Agency and Client and their respective successors and permitted assigns, but neither this agreement nor any of the rights, interests, or obligations hereunder may be assigned by either party without the prior written consent of the other.
NON-DISCRIMINATION: Agency does not discriminate in referrals, or consent to discrimination by its clients, against any candidate on the basis of age, race, color, religion, disability, sex, national origin, or veteran status.
GOVERNING LAW: This agreement will be governed by and enforced in accordance with the laws of the state of __________. The parties agree that state and federal courts within the state of __________ shall have the exclusive jurisdiction over any litigation brought or arising out of this agreement.
COST OF ENFORCING AGREEMENT: In the event Agency files suit to enforce its rights under this agreement and is the prevailing party, Agency shall be entitled to costs of suit and reasonable attorney fees incurred by it in connection with the suit.
TERMINATION AND SURVIVAL OF CERTAIN PROVISIONS: This agreement may be terminated by either party upon ____ days’ written notice to the other party. However, Client shall remain liable to the Agency for all fees and expenses due under this agreement for any candidate referred to CLIENT, its affiliates, parents, or subsidiaries, prior to termination. All other provisions of this agreement that by their terms extend beyond the termination of this agreement shall survive such termination and remain in full force and effect.
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