What to include in staffing agency contracts.
Staffing agencies are a great way to quickly fill job vacancies. But before you hire an agency, be sure to learn how to make a contract.
Staffing agency contract vs employment agency contract.
Agency agreements ensure both parties understand the conditions of employment and help to prevent legal issues in the future.
Generally, staffing agencies offer temporary job placements and opportunities with set employment time limits. Employment agencies, on the other hand, usually place individuals in more permanent positions. Still, a staffing agency agreement can be a temporary and permanent contract.
Whether using an in-person or remote onboarding process, you want to ensure that you’re as detailed as possible in the contract to answer as many questions as possible upfront so employees can confidently hit the ground running.
What to include in a staffing agency contract.
The more detailed your staffing agreement contract, the less chance of future misunderstandings. Here are some of the most important points to include in staffing agency agreements for both temporary and permanent contracts:
- Services provided. Ensure both parties understand what the employee will be doing for your company. Be as specific as possible.
- Rates. Most staffing agencies charge either a flat rate or a percentage. Make sure rates are clear upfront to avoid potential misunderstandings.
- Invoicing schedule. How often will you be billed? Will the agency send one big invoice at the end of the contract, or will they bill you monthly?
- Payment terms. How does the staffing agency want to be paid? Also include a breakdown of any fees or costs, including potential late penalties.
- Length of contract. For temporary staffing agency contracts, include the start and end dates. Permanent contracts should explicitly state that the contract is ongoing.
Staffing agency contracts are legal documents that might require specific information by law. Look into local regulations to make sure you include all the right information. Once you’ve created the contract, you can sign the contract using electronic signature software like Adobe Acrobat.
Terminology you need to know for staffing agency contracts.
If you are working with a staffing agency, be aware of the following terms:
- Applicant. Someone who is seeking employment either with an employment agency or directly with a company.
- Contingency recruiter. A staffing agency or executive search firm that vets and recommends candidates to an organization. The agency’s fee is contingent on the candidate being hired.
- Applicant tracking system (ATS). Software that stores and analyzes candidate data to filter and route job applications.
- Candidate. A job applicant whom a staffing agency deems qualified for a particular position.
- Employee. A person who works for an organization without a specific job end date.
- Executive search. An employment search where recruiters work to place exclusively senior-level professionals in permanent job positions.
- Independent contractor. An individual who is self-employed and provides services through a corporate entity.
- Freelancer. Another term for an independent contractor.
- Recruitment Agency. Another term for a company that provides permanent job placements and/or temporary staffing services.
What to be aware of when drafting a staffing agency agreement.
As you draft a staffing agency agreement, be sure to read it in its entirety. Look for clauses that may dictate whether you can engage any other staffing agencies, penalties for not showing up to interviews or completing other tasks, and any ongoing percentages of your pay the staffing agency will be entitled to after you get the job.
Don’t forget to get your staffing agency contract signed.
To prove that both parties have read and understand the agreement, leave a space for signatures at the bottom of the contract. Using electronic signature software like Acrobat, your HR department and the staffing agency can legally sign contract agreements remotely, ensuring you get the help you need quickly and efficiently to start the in-person or remote onboarding process.
Discover more about what you can do with Acrobat for business to simplify HR processes.