Hiring a Recruitment Consultancy: What Clauses Should Be in the Contract Agreement?

My company is hiring a consultancy for the recruitment process. Can somebody tell me what clauses should be added to the contract agreement with that consultancy?

Hi Khushi,

I am interested in the vacancy. Kindly send me the details of the position along with the percentage of my benefits.

Regards,
Khushi

Dear Neeti Joshi,

As per your request, please find the enclosed Recruitment Service Agreement format for your perusal. You can use this in your company.

Dear Neeti Joshi,

As per your request, please find the enclosed Recruitment Service Agreement fo

Hi Neeti,

In a consultancy agreement, you can begin with definitions such as:
1. The company & company referred to as.
2. Stage at which they should send resumes: e.g., shortlisted candidates basis JD (to provide / not to provide) or preliminary TCon.
3. Duplication of resumes provided by x consultancy.
4. Info to the consultancy that will be provided, such as shortlist/selection/offer/joining/CTC info, etc.
5. Defining consultancy charges.
6. Taxes.
7. Period of payment.
8. Position refill if the candidate leaves before the agreed time (free of cost).
9. Non-poaching agreement.
10. Trade agreement/confidentiality agreement, etc.

I think you can get your agreement verified with your legal advisor as well.

Regards,
Swati

Hi Neeti,

There are basic clauses one should have in consultancy agreements, such as exclusivity, area of work, assignment time frame, replacement in case the employee leaves in 30 days or so, calculation of CTC, fee structure based on position, band, or designation, arbitration, and jurisdiction.

Hi Neeti,

In a consultancy contract, you have to include the following three major terms:

1. We will pay 8.33% of the Gross Salary (Basic + HRA + Conv. + Sp. All.) of the candidates. Payment terms should be very clear.

2. The payment will be done one month after the candidate joins. Payment time should be very clear.

3. If any selected candidate leaves their job within three months of joining, you will provide a replacement without any charges. The replacement time should be clear.

Thanks,
Shilpa Chopra
HR Executive
9891097229

Hi Neeti,

The important things in a Consultancy Contract are:

- Commercials: Our standard rates are as follows - 0 to 4 years at 8.33%, 4 to 8 years at 10%, and over 8 years at 12.5%. Taxes are charged extra.

- Guarantee Period: Typically, for IT and Non-IT, it's 90 days from the date of joining. However, for the ITES sector, it's only 30 days.

- Payment Schedule: Payment is usually required to be released within 30 days from the date of the invoice.

- Validity of the Agreement: Generally, the agreement is valid for 1 year.

- Arbitration Clause: Disputes are typically settled in the courts of your city.

- Responsibilities of the Client (You) and the Consultant need to be clearly segregated.

- Important Communication: All crucial communications must be in writing, and no verbal communication will be entertained.

If these elements are included in the agreement along with some general clauses like Force Majeure, it's complete.

Regards,
Nobel George
Abner HR Consulting Services
Bangalore
M: +91 9900145414
T: 080 - 23654001

Hi All, my team and I are planning to start a consultancy and would appreciate some feedback and guidance from all of you. Actually, one of my friends advised me to seek out a consultancy contract copy that would be signed between the recruiting company and the consultancy. It would be of great help if someone could provide me with the document.

Thank you!

When preparing a consultancy agreement, you should include the following information as suggested in the initial proposal:

• Name and address of the parties involved in the agreement
• Purpose of the agreement
• Detailed start and finish dates of the agreement
• Number of employees involved in the agreement (1, 2, or 3 consultants)
• Expectations from the consultancy company
• Number of hours required to work
• Payment details for the consultants
• Deliverables expected from the consultancy
• Causes for termination of the agreement
• Actions to be taken if any clauses in the contract are breached
• Confidentiality agreement clauses
• Attach the CV or company profile
• Signatory: one representative from each party, plus a witness and a legal advisor

Regards