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Staffing Agency Fee Agreement for India

Staffing Agency Fee Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions between a staffing agency and a client company for recruitment and placement services. The document outlines fee structures, payment terms, service scope, obligations of both parties, and compliance requirements under Indian labor laws. It includes provisions for candidate placement, replacement guarantees, confidentiality, data protection, and dispute resolution mechanisms, all while ensuring alignment with Indian regulatory requirements including the Contract Act, 1872 and relevant employment legislation.

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Staffing Agency Fee Agreement

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What is a Staffing Agency Fee Agreement?

The Staffing Agency Fee Agreement is a crucial document used when companies in India engage professional recruitment agencies for their hiring needs. This agreement establishes the commercial and operational framework for the staffing relationship, detailing how the agency will source, screen, and present candidates to the client company. It addresses key aspects such as fee calculations, payment schedules, service levels, and compliance with Indian labor laws. The document becomes particularly important in the Indian context where recruitment practices must align with various regulations including the Contract Labour Act, Shops and Establishments Act, and other relevant employment laws. This agreement protects both parties' interests by clearly defining responsibilities, setting expectations for service delivery, and establishing dispute resolution mechanisms.

What sections should be included in a Staffing Agency Fee Agreement?

1. Parties: Identifies the staffing agency and the client company, including their registered addresses and company details

2. Background: Outlines the context of the agreement, including the staffing agency's business and the client's staffing needs

3. Definitions: Defines key terms used throughout the agreement including 'Candidates', 'Placement', 'Fees', 'Services'

4. Scope of Services: Details the recruitment and staffing services to be provided by the agency

5. Fee Structure and Payment Terms: Outlines the fee calculation methodology, payment schedule, and payment terms

6. Agency Obligations: Lists the staffing agency's responsibilities, including candidate screening and compliance with labor laws

7. Client Obligations: Specifies the client's responsibilities, including providing accurate job descriptions and timely information

8. Confidentiality: Addresses the handling of confidential information exchanged during the recruitment process

9. Data Protection: Covers compliance with data protection laws and handling of personal information

10. Term and Termination: Specifies the duration of the agreement and conditions for termination

11. Indemnification: Outlines mutual indemnification obligations and liability limitations

12. Governing Law and Jurisdiction: Specifies Indian law as governing law and defines jurisdiction for dispute resolution

13. Notices: Details how formal communications between parties should be made and delivered

14. General Provisions: Includes standard boilerplate clauses such as force majeure, severability, and entire agreement

What sections are optional to include in a Staffing Agency Fee Agreement?

1. Replacement Guarantee: Includes terms for candidate replacement if placed candidates leave within a specified period - used when agency offers such guarantees

2. Volume Discounts: Specifies discount structures for bulk hiring - relevant for larger clients or long-term engagements

3. International Placements: Additional terms for cross-border recruitment - needed when international hiring is involved

4. Temporary Staffing Terms: Specific provisions for temporary staff management - used when temporary staffing services are offered

5. Background Verification Services: Terms for additional background checking services - included when agency provides verification services

6. Training and Onboarding Support: Details of any training or onboarding services - relevant when agency provides these additional services

7. Performance Guarantees: Specific performance metrics and guarantees - used in high-value or specialized recruitment arrangements

8. Non-Solicitation: Prevents direct hiring of agency staff - included when protecting agency's internal talent is important

What schedules should be included in a Staffing Agency Fee Agreement?

1. Schedule A - Fee Structure: Detailed breakdown of all fees, including placement fees, additional service charges, and payment terms

2. Schedule B - Service Level Agreement: Specific metrics and timelines for recruitment process and service delivery

3. Schedule C - Required Documentation: List of documents required from candidates and compliance requirements

4. Schedule D - Job Categories and Specifications: Details of different job categories and corresponding fee structures

5. Appendix 1 - Standard Operating Procedures: Detailed recruitment process and workflow

6. Appendix 2 - Compliance Checklist: Checklist of regulatory requirements and compliance procedures

7. Appendix 3 - Report Formats: Templates for various reports and documentation to be provided by the agency

8. Appendix 4 - Key Personnel: List of key contacts from both parties responsible for managing the relationship

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions













































Clauses







































Relevant Industries

Information Technology

Manufacturing

Healthcare

Financial Services

Retail

Professional Services

Telecommunications

Education

Construction

Hospitality

E-commerce

Pharmaceutical

Automotive

Energy

Consulting

Relevant Teams

Human Resources

Legal

Finance

Procurement

Compliance

Operations

Talent Acquisition

Vendor Management

Contract Administration

Relevant Roles

Human Resources Director

Talent Acquisition Manager

Legal Counsel

Finance Director

Procurement Manager

HR Business Partner

Recruitment Manager

Compliance Officer

Operations Manager

Chief Financial Officer

General Counsel

HR Operations Manager

Vendor Management Specialist

Contract Administrator

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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