Recruitment Agreement with clients – Feedback and Dispute Resolution clause

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Table of Contents

• Disclaimer
• Replacement Period
• Termination and Associated fees
• Dispute Resolution
• Conclusion

Your Recruitment Agreement is an important legal document that details terms upon which you will provide recruitment services to the client that requires candidates. There are a number of issues that you should cover in the feedback and dispute resolution clause of your Recruitment Agreement. Having this clause in place will reduce the likelihood of issues arising later on, and will help to ensure you have a good relationship with the clients that may continue to use your services.

Disclaimer

You should include a disclaimer that states that you will do your best to introduce suitable candidates to the client; however, it is the client’s responsibility to assess each candidate against their own requirements and make sure the candidate is right for the position and their business. You should make sure that you set out that you do not guarantee the satisfaction or compatibility of any candidate as an employee for the client.

Replacement Period

Depending on the nature of the placement, you may consider having the option for the candidate to be replaced within a certain period or you may not provide this guarantee depending on the nature of the industry in which you are placing candidates. If you have a period in which you will provide a replacement, you should consider whether this will include where both the candidate and client terminate the agreement.

Termination and Associated fees

If either party terminates the agreement, then they will need to notify you of this as soon as possible, within the period provided. You should also set out that if you do undertake further services for the client, then you will require some time to find a replacement. You should also set out whether there will be any fees associated with finding the replacement. Another important issue that needs to be addressed is whether you will provide a replacement at a cost where the replacement is required outside of the guarantee period that you specify.

Dispute Resolution

This clause should also have in a place a dispute resolution process, which the parties are required to undertake before terminating the Recruitment Agreement. Typically the person with the complaint must contact the other party and set out what their dispute is and what outcome they would like to resolve the issue. You can then agree to meet and try and resolve the dispute through discussion, at which point you may decide to provide a replacement candidate or refund the fees paid by the client. If you are still unable to resolve the dispute between the parties then you may wish to refer the dispute to a mediator at the Law Society in your State or Territory.

Conclusion

If you’re unsure how to go about drafting your Recruitment Agreement, you should speak with a qualified, experienced business lawyer, preferably one with experience drafting Recruitment Agreements. At LegalVision, we draft Recruitment Agreements on a regular basis, so if you’re in need of legal advice, contact us on 1300 544 755 and our Client Care team will be able to assist.