The Recruitment Process Outsourcing Contract is essential for organizations looking to outsource their recruitment functions to specialized service providers in Malaysia. This document is particularly relevant when companies seek to optimize their hiring processes, reduce recruitment costs, or scale their workforce efficiently. The contract, governed by Malaysian law, encompasses comprehensive terms for recruitment services delivery, including candidate sourcing, screening, and selection processes, while ensuring compliance with local employment regulations and data protection requirements. It specifically addresses key aspects such as service level agreements, performance metrics, data security, and commercial terms. The document is structured to protect both parties' interests while facilitating efficient recruitment operations, making it suitable for both long-term strategic partnerships and project-based recruitment initiatives.
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1. Parties: Identification of the Client and the RPO Service Provider, including registered addresses and company details
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the RPO arrangement
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Scope of Services: Comprehensive description of recruitment services to be provided, including geographical coverage and types of positions
5. Service Provider's Obligations: Detailed responsibilities of the RPO provider, including recruitment processes, reporting, and compliance requirements
6. Client's Obligations: Client's responsibilities, including provision of information, access to systems, and approval processes
7. Data Protection and Privacy: Compliance with PDPA 2010 and data handling requirements
8. Confidentiality: Protection of confidential information of both parties and candidates
9. Fees and Payment Terms: Detailed fee structure, payment schedule, and invoicing requirements
10. Service Levels: Performance metrics, KPIs, and measurement criteria
11. Term and Termination: Contract duration, renewal terms, and termination provisions
12. Warranties and Representations: Standard warranties from both parties regarding capacity and service delivery
13. Liability and Indemnification: Risk allocation between parties and indemnification obligations
14. Force Majeure: Provisions for unforeseen circumstances affecting contract performance
15. Dispute Resolution: Process for resolving disputes under Malaysian law
16. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Technology and Systems Integration: Required when the RPO provider will integrate with or provide specific recruitment technology platforms
2. International Recruitment: Include when services involve cross-border recruitment and immigration assistance
3. Transition Services: Needed when transitioning from existing recruitment processes or previous service providers
4. Dedicated Team Provisions: Include when specific staff members will be dedicated to the client
5. Industry-Specific Compliance: Required for regulated industries with specific recruitment requirements
6. Employer Branding: Include when RPO provider will manage or contribute to client's employer branding
7. Training and Knowledge Transfer: Required when RPO provider will provide training to client's staff
1. Schedule 1 - Service Description: Detailed breakdown of all recruitment services and processes
2. Schedule 2 - Service Levels and KPIs: Detailed metrics, measurement methods, and reporting requirements
3. Schedule 3 - Fee Schedule: Detailed pricing structure, including placement fees, retained fees, and additional services
4. Schedule 4 - Data Processing Agreement: Detailed data protection and processing requirements under PDPA
5. Schedule 5 - Approved Recruitment Sources: List of approved job boards, recruitment channels, and advertising platforms
6. Schedule 6 - Report Templates: Standard formats for regular reporting and performance metrics
7. Schedule 7 - Escalation Matrix: Contact details and escalation procedures for various issues
8. Appendix A - Standard Operating Procedures: Detailed recruitment processes and workflows
9. Appendix B - Technology Specifications: Technical requirements and integration specifications if applicable
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