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Recruiting Agency Contract Template for Malaysia

A comprehensive agreement governed by Malaysian law that establishes the terms and conditions between a recruitment agency and a client company for the provision of recruitment services. This document outlines the responsibilities of both parties, fee structures, placement guarantees, and compliance requirements under Malaysian employment legislation, including the Private Employment Agencies Act 1981 and related regulations. It includes provisions for candidate screening, placement terms, confidentiality, data protection under PDPA 2010, and dispute resolution mechanisms specific to the Malaysian jurisdiction.

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What is a Recruiting Agency Contract?

The Recruiting Agency Contract is essential for organizations seeking to formalize their relationship with professional recruitment service providers in Malaysia. This document is used when a company needs to engage a recruitment agency for talent acquisition services, whether for permanent, temporary, or contract positions. It ensures compliance with Malaysian employment laws, including the Private Employment Agencies Act 1981, Employment Act 1955, and Personal Data Protection Act 2010. The contract covers crucial aspects such as service scope, fee structures, candidate guarantees, and compliance requirements, while protecting both parties' interests through clear terms and conditions. It's particularly important in the Malaysian context where specific regulations govern recruitment agency operations and employment relationships.

What sections should be included in a Recruiting Agency Contract?

1. Parties: Identification of the recruitment agency and the client company, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including the client's recruitment needs and the agency's services offering

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

4. Scope of Services: Detailed description of recruitment services to be provided, including search, screening, and placement services

5. Agency Obligations: Responsibilities of the recruitment agency, including compliance with laws, due diligence in candidate screening, and service standards

6. Client Obligations: Client's responsibilities, including providing accurate job descriptions, timely feedback, and cooperation

7. Fees and Payment Terms: Fee structure, payment schedule, and conditions for fee payment or refund

8. Placement Guarantee: Terms of replacement or refund if placed candidates leave within specified period

9. Confidentiality: Protection of confidential information exchanged during the recruitment process

10. Data Protection: Compliance with PDPA 2010 and handling of candidate personal data

11. Non-Solicitation: Restrictions on hiring agency staff or direct hiring of candidates

12. Term and Termination: Duration of agreement and circumstances for termination

13. Liability and Indemnity: Limitation of liability and indemnification provisions

14. General Provisions: Standard clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Recruiting Agency Contract?

1. International Recruitment: Additional terms for cross-border recruitment, including immigration compliance and visa processing

2. Industry-Specific Requirements: Special provisions for regulated industries like financial services or healthcare

3. Volume Recruitment: Special terms and pricing for bulk hiring requirements

4. Retained Search Services: Additional terms for exclusive executive search arrangements

5. Training and Onboarding: Terms for additional services related to candidate preparation and integration

6. Performance Metrics: KPIs and service level agreements for recruitment performance

7. Multi-location Services: Terms for providing services across multiple client locations or jurisdictions

What schedules should be included in a Recruiting Agency Contract?

1. Schedule 1 - Fee Structure: Detailed breakdown of fees, including placement fees, retained search fees, volume discounts

2. Schedule 2 - Service Specifications: Detailed scope of services, including recruitment process steps and timelines

3. Schedule 3 - Required Compliance Documents: List of mandatory documentation and compliance requirements

4. Schedule 4 - Approved Client Locations: List of client locations covered by the agreement

5. Schedule 5 - Key Personnel: Details of key agency staff assigned to the client account

6. Appendix A - Standard Operating Procedures: Detailed recruitment processes and procedures

7. Appendix B - Reporting Templates: Standard formats for recruitment progress reports and documentation

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use

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