The importance of contracts cannot be understated for any business. Whether it is a large corporation or a small enterprise, contracts are needed to make sure businesses run smoothly on a daily basis. Contracts can either be used to create a new partnership with an investor, or it can either be used to perform a number of business functions.
Recruitment agencies also need contracts. So if you are working in an recruitment agency and is tasked to create a contract, here are some contract template examples you can use. They are all free to download and you can use them as reference when you will be starting to create your own recruitment agency contract.
Listed below are the essential tips in creating a recruitment agency contract.
A contract always begins with the basic details of each party. A contract cannot be called one if the most basic information are absent. The parties who will be engaging in a contract should include the names of their companies (the names should be exactly the one listed in their business registration form), complete office addresses, and the names of the persons representing the said parties in the contract. Both parties can include the nature of their businesses but it is not mandatory.
Other information pertaining to each parties such as the products or services they are selling, the number of employees (full-time or contractual), financial status (revenue, profit, assets and liabilities) should be omitted from the contract as these types of information or data are not related to the actual purpose of the contract. They are better off included in a business plan or marketing plan.
The essence of the contract can be found in the terms of work being suggested by one party (offer) and the same terms of work being accepted by the other party (acceptance). For this type of contract, specifically a recruitment agency contract, one party outsources recruitment work and the other party (the recruitment agency) accepts the said work. But the acceptance of one party is not as simple as simply saying “yes” to the offer of the party.
The degree of work and the payment should be clearly laid out and specified in the contract. The party offering the work may limit the functions to be accomplished by the other party (recruitment agency) or give total or full control to the other party in terms of recruitment services.
In terms of payment meanwhile, one party needs to pay the other for services to be incurred. Recruitment agencies are not non-profit organizations where they offer their services for free. The terms of payment will most likely be discussed by both parties before the contract is made and presented for signatures to be affixed. Thus, the contract acts as a formality in terms of the payment. Payment can either be one-time (preferably at the beginning where the recruitment agency commences its work) or paid in installments (monthly or bimonthly until the work is completed).
In order for a contract to be enforceable, it needs to abide the local and national laws. Both parties need to be legitimate businesses before they even plan on entering the contract (i.e. complete business requirements, safe working conditions for employees, and meeting ethical work standards as required by the government).
Next up, both parties should be engaging in a legitimate agreement or an agreement that falls under the legal requirements prescribed in the laws governing all types of businesses or business entities. For example, both parties cannot engage in selling illegal drugs, importing endangered animals, be involved in a conspiracy or theft of other businesses, and the like.
In all types of contract, the parties must have a common intention regarding the terms listed in the contract. Both parties should be 100% agreeable to all the contract terms, and no less than that. Once the signatures have been affixed in the contract, it means that the parties need to accomplish everything that is agreed upon in the contract.
If one or both parties are not satisfied with the work that has been accomplished after the contract ends, then they can raise their concerns and arrive with a conclusion through a legal authority—a court or tribunal. Court proceedings are lengthy and there are times where courts do not arrive at a proper decision, causing problems for one or even both parties.
Parties can always settle their issues without having to go through a long and exhausting court proceeding, as long as they have the best intentions and are not planning to commit something unethical or illegal.
To make things clear, recruitment agencies and employment agencies are two different business entities. A recruitment agency is a company or business organization where a job applicant submits his resume (CV), in which the recruitment agency will then forward the applicant’s resume to companies who are looking for workers (either full-time or contractual). For an employment agency meanwhile, if an applicant gets a job through an employment agency, then he or she will work in that employment agency.
Recruitment agencies conduct the entire recruitment process, from shortlisting candidates, to conducting interviews and exams, and eventually to hiring employees. Applicants submit their CVs in recruitment agencies, and these recruitment agencies will do the rest. Job applicants turn to recruitment agencies especially if they are having concerns on what jobs they want to apply. These concerns can pertain to applicants not being able to find current jobs that do not fit their skills and experience, or simply applicants wanting to see companies who are offering job opportunities in which the jobs are not posted in various forms of media.
Recruitment agencies have only started to crop up in the past decade. Twenty to thirty years ago, all companies (whether large corporations or small enterprises) did their own recruitment. The process was lengthy, since computers did not exist back then and recruiters had to manually process each and every application. Oftentimes, applications would get lost in a shuffle as they get piled up. The best applicants were not necessarily hired and the company would settle for other applicants instead.
Today, companies would partner with these recruitment agencies if they want to add manpower in the daily operations of their business. The company would inform the hiring to the recruitment agency, and the recruitment agency will post the said hiring in their website or post them in public places. Most of the time, the company will already give the recruitment agency the exact details of the job hiring (i.e. job description, job qualification, number of jobs to be given out, and duration of the job hiring).
Have you ever thought of starting your own recruitment agency business? These days, more and more firms are outsourcing their recruitment to recruitment agencies not only to cut costs but also to make the recruitment faster. Here are some tips in starting a recruitment agency business.
Human resource IT systems have made it very easy for firms to conduct their recruitment processes. These systems act as a database where job applications can be stored and also an applicant finder if the company wants to locate the most qualified job applicant in a specific city or area. Human resource systems limits the work done by the human resource department as they don’t have to go out and advertise the job opening with the intention of receiving applications and hiring the best person for the job.
Businesses always start small, and with a small number of people running it. Recruitment agencies on the other hand do not need to employ a hundred to a thousand employees since, in the first place, they hire people to work in companies. That is the reason why there is no need to hire a large number of staff for a recruitment agency to be effective. A single recruiter can already conduct interviews and exams for at most 50 job applicants in a single day.
Recruitment agencies forming a partnership with government and private institutions for job openings is not a new thing. Actually, more and more businesses are turning to recruitment agencies for their job openings. Both parties can benefit from this partnership, as these institutions can be assured of skilled and qualified employees while the recruitment agencies will earn from conducting the recruitment process.
We hope you have gained the information that you wanted regarding recruitment agency contracts. Brows through our website for more kinds contracts.