Optimize Your Hiring Process with a Staffing Agency Contract Templates (Word / PDF)

staffing agency contract template

A staffing agency contract template is used to create a legal agreement between a staffing agency and an employer. This document specifies the agreed-upon terms related to staffing services being provided.

What is a staffing agency contract?

A staffing agency contract is a legally binding agreement that describes the terms and conditions of the relationship between a staffing agency and an employer. The contract explains the services that will be provided by the staffing agency, the cost of the work, and other important information.

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Furthermore, it would be recommended to use a staffing agency contract template to make sure that you place a protective and legally accurate contract.

When to use a staffing agency contract?

You need a staffing agency contract when a company seeks your services for staffing solutions. To prevent future legal complexities, the document includes important employment conditions for full-time, part-time, or temporary employees. However, the responsibility of the staffing agency is to recruit, screen, interview, and hire employees on behalf of the company.

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Usually, such arrangements are short-term. But, depending on the mutually agreed goals, some staffing agencies can handle hiring for permanent positions. In such a situation, you need a comprehensive staffing agency contract when entering into a working relationship with a company.

Who needs this contract?

  • The Employers need a staffing agency contract when they want to outsource their staffing requirements to a professional agency.
  • This contract is required by job seekers who are searching for temporary or permanent employment through the agency.
  • Companies that need specialized or seasonal staffing services also use this document.
  • Businesses that need legal protection while engaging with staffing agencies.

Key information to include:

Include the following key information in the staffing agency contract;

  • The names and addresses of a staffing agency and a company
  • The date that indicates when the agreement will go into effect
  • The type of relationship
  • The terms and conditions of the process
  • The payment details for the agency from the client and for those hired
  • A statement that states how the contract will be terminated
  • The signatures of representatives

Writing a staffing agency contract:

Consider the following steps to write a staffing agency contract;

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Introduction

Write a precise overview of the purpose of the agreement in the introduction section of a staffing agency contract. Also, it includes the complete legal names and addresses of the staffing agency and the client.

Effective date

State the date that indicates when the agreement will go into effect. This date also specifies when the contractual obligations between the staffing agency and the client come into effect. Additionally, it identifies the timeline and duration of the agreement.

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Rights and responsibilities

Describe the services that the staffing agency will provide. These may include recruiting, advertising, screening, and interviewing. Moreover, it is important to specify the terms and conditions that dictate these arrangements. Include the following requirements for the client;

  • Providing job descriptions
  • Applicant qualifications
  • The responsibility of the client to cover background check
  • Employee evaluation forms

Payment procedures

For newly hired individuals, state clearly how payments will be handled as well as state how payments will be facilitated whether through the agency or the client. This information is specifically important for permanent positions. The agreement must specify which party is responsible for collecting federal, state, and employment taxes. If there are any legal obligations relevant to employee management then also address them in the agreement.

On-site coordinator

Outlines the duties and responsibilities of an on-site coordinator within the contract if the staffing agency is providing them.

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Compensation terms

Explain in the compensation section a thorough breakdown of the costs and payment structure for the offered services. Include the following details here;

  • Any applicable markup fees
  • Fixed hourly rates
  • Compensation terms for permanent positions
  • Retainer fees
  • Billing rates for additional services
  • The agreed-upon date for fee payment

Contract termination

In the agreement, states the terms and conditions under which the parties may terminate the contract. If any notice period is needed for termination then specify it. In addition, demonstrate the circumstances that terminate the contract immediately. For instance, non-compliance with legal or ethical standards, violation of contract, etc.

Relationship and confidentiality

Here, you have to build the nature of the relationship between the staffing agency and the company. You should make it clear in the contract that a staffing agency is not an employee or partner of the client, they are an independent contractor.

Additionally, another important element to include in the contract is provisions regarding the confidentiality of sensitive information. Demonstrate the responsibilities of parties for maintaining the confidentiality of the following;

  • Proprietary information
  • Trade secrets
  • Client lists
  • Any other sensitive data

Indemnification and liability

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In this section, specify the responsibilities and liabilities of each party in the event of legal claims and disputes. This way, you can get a clear understanding of the risks involved and the actions to be taken in such events.

Governing law and jurisdiction

In order to add clarity to the legal framework surrounding the agreement, outline the governing law under which the contract will be interpreted. Also, specify any particular jurisdiction where you will address disputes or legal matters.

Amendments and modifications

Explain in the agreement how to make amendments or modifications to the contract. Clearly specify that any amendments made to the agreement must be in writing. It should also be signed by authorized representatives of the staffing agency and a company.

Severability

The staffing agency contract makes it clear that the invalidity or unenforceability of any provision of the agreement will not affect the validity or enforceability of the remaining provisions. This makes sure that the contract remains intact in case one section of the contract is deemed unenforceable. Moreover, you get protection by including a severability clause in the contract. It also enables the contract to manage the relationship between the staffing agency and the client.

Signatures

Finally, affix the signatures of the authorized staffing agency representatives and the client and date the agreement. The signatures allow the execution of the contract. Don’t forget to place printed names and titles of the signatories.

FAQS (Frequently Asked Questions)

How does a staffing agency contract work?

A staffing agency contract builds a formal relationship between the employer and the staffing agency by including details about hiring criteria, payment schedules, communication needs, and responsibilities of each party. Both parties have to comply with the terms outlined in the contract.

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Does every staffing agency need a contract for staffing?

Yes. It is important to have your engagement in writing no matter whether you are giving full-time, part-time, or temporary staff to an employer. The contract removes confusion about compensation and everyone understand their responsibilities.

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