Your Recruitment Agreement sets out the relationship between you and the clients that hire you to recruit and place candidates with their business. The client’s obligations clause is a particularly important clause in your Recruitment Agreement as it sets out the obligations you place on the clients during and after the process of shortlisting and organising candidates.

Client’s obligations clause

You can also set out a non-compete clause to ensure that clients do not circumvent your services, by hiring candidates they meet through your services without paying a fee. The client’s obligations clause may set out that, clients agree that:

  • there are no legal restrictions from them entering into the agreement;
  • they will cooperate with you and provide you with all necessary information to find a candidate for them, this may include providing you with personal identification such as a driver’s licence or business registration information;
  • they may be required to undertake police checks if they are an individual client;
  • they may also be required to provide personal reference checks if they are an individual client rather than a business;
  • they will provide you with information and agree to undertake consultations or complete paperwork to assess their needs;
  • any information they provide is correct and complete;
  • they will not infringe any third party rights in working with you and receiving the services from you;
  • they will work with you in relation to any concerns and make reasonable efforts to work with you on any issues; and
  • they will enter into their own agreement with the candidate.

You may also set out obligations in relation to the agreement between the client and the candidate. However you should include a clause that states that if the client does accept a candidate to be placed with them, their rights and obligations (apart from those set out in the terms of your Recruitment Agreement) will be governed by the agreement between the client and the candidate.

Depending on the nature of the placement you may also set out the obligations that must be included in the agreement between the candidate and the client. For example you can set out that the client must comply with certain legislative requirements or awards and cover certain benefits and expenses.


As a recruitment agent, if you don’t know how to go about drafting your Recruitment Agreement with clients, you should speak with a qualified contracts lawyer, preferably one with experience with employment law and drafting Recruitment Agreements. At LegalVision we work with recruitment agents on a regular basis and can assist you with legal issues related to your recruitment business. So if you’re in need of legal advice, contact us on 1300 544 755 and speak with one of our contract lawyers.

Lachlan McKnight
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