What Should I Include In My Recruitment Agreement With Candidates?

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Table of Contents

• Accurate and Up-to-date Information
• Privacy Considerations
• Non-Circumvention Clause
• Exclusivity
• Payment Terms
• Limitation of Liability
• Key Takeaways
• Frequently Asked Questions

As a recruiter, you want to ensure that the candidates you work with put their best foot forward when participating in recruitment campaigns. It is also important that your candidates do not undertake any behaviour that damages your reputation with employers in the future. Therefore, your recruitment agreement with candidates sets out the terms on which you will represent the candidate and provide them with your services. This ensures that each party understands their expectations and obligations before entering into the relationship. So, this article will discuss some key things to consider when drafting your recruitment agreement with candidates. 

Accurate and Up-to-date Information

As part of your recruiting process, you represent the candidate and present them to a range of employers as a potential new hire. Therefore, you will want to ensure that you have the right information to work with and that you can rely on this information. You should consider including an obligation on your candidates to provide you with accurate and up-to-date information. This is particularly important in relation to their: 

• background;
• professional experience;
• qualifications; and 
• references. 

Privacy Considerations

You must comply with Australia’s privacy laws if you are an APP entity. Therefore, your recruitment agreement should include an acknowledgement and consent from your candidate for you to disclose their personal information to employers. 

Non-Circumvention Clause

It also prevents them from bypassing you to avoid paying the fees owed. Indeed, you will likely have worked hard to find appropriate candidates’ roles that match their skills and desired benefits. Therefore, you should ensure you receive payment for your services.

You should also consider including a provision requiring the candidate to inform you if a potential employer you have introduced them to contacts them directly. Again, this is because it could also have the effect of circumventing your arrangement. Ideally, this clause should survive the termination of the agreement, and you should define the length of time that any non-circumvention provisions apply. By doing so, you will avoid a situation where a candidate directly contacts an employer you had previously introduced them to not long after the termination of your arrangement with the candidate. 

Exclusivity

It is important to consider whether you would like the candidate to work exclusively with you during their job search. This is because they may also work with other recruiters. Therefore, requiring a candidate to work exclusively with you shows their commitment to finding a job via your services. It also ensures that they do their best when participating in a recruitment campaign. 

If you decide to make the arrangement non-exclusive, it is even more important to consider a non-circumvention clause. Doing so can avoid a situation where another recruiter receives a fee for an introduction you make.  

Payment Terms

You will need to discuss with your candidate how you charge fees. Ensure you document this in your written agreement. Additionally, consider when and how you will charge your fees. This will include:

• whether the candidate will pay a fixed monthly fee for the services you provide;
• a fee per introduction; or
• a fixed fee only at the time of a successful placement. 

You should also document whether they should pay you a deposit or any other applicable special conditions regarding payment.

Notably, in most cases, the employers will pay the placement fee. 

Limitation of Liability

Limiting your liability as a recruiter is also a key consideration. Indeed, as you are simply an agent that introduces the candidate to the employer, you want to ensure that the candidate cannot make a claim against you if the relationship between the employer and the candidate does not work out. This is particularly important in situations where the relationship breakdown is due to the candidate’s inaccurate or misleading information. You will also want to consider limiting your liability when you cannot place a candidate for any reason. This includes, for example, where they have unreasonable expectations or have a niche skillset. 

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Key Takeaways

As a recruitment agent, it is important to have a well-drafted recruitment agreement that addresses the candidate’s obligations to prevent issues from arising later. It also ensures that you have full cooperation from your candidates. By doing so, the agreement works to clarify expectations. It also protects you if you have a candidate you cannot place because they fail to provide sufficient or accurate information. 

If you need help with a recruitment agreement, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions