This Recruitment Services Agreement ("Agreement") is made and entered into on —, by and between —, having its principal place of business at — (hereinafter referred to as the "Agency"), and —, having its principal place of business at — (hereinafter referred to as the "Client"). The Agency and the Client are collectively referred to as the "Parties". This Agreement is entered into in accordance with the Indian Contract Act, 1872 and all applicable laws of India.
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Party A — Recruitment Agency
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Party B — Client Company
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1Scope of Services
The Agency agrees to provide end-to-end recruitment services to the Client, which shall include but not be limited to the following:
- Identification and sourcing of suitable candidates for positions notified by the Client.
- Pre-screening of candidates, including initial review of qualifications and employment history as declared by the candidate.
- Presenting a shortlist of qualified candidates to the Client for review and interviews.
- Arranging and facilitating initial interviews between the Client and shortlisted candidates.
- Assisting in salary negotiations between the Client and the candidate, upon request.
- Ongoing coordination and communication with the Client throughout the recruitment process.
- The Agency does not conduct formal background verification, employment reference checks, educational credential validation, criminal record checks, or any other form of pre-employment due diligence. Such verification, if required, shall be the sole responsibility of the Client or a third-party agency engaged by the Client at its own cost.
- The Agency makes no representation or warranty as to the accuracy of information provided by candidates. The Client shall independently satisfy itself as to the suitability, qualifications, and integrity of any candidate before making an offer of employment.
- The Agency shall not be held liable for any loss, damage, or claim arising from the conduct, misrepresentation, or actions of any placed candidate, whether before or after joining.
- The Client retains sole and final authority over all hiring decisions.
2Placement Fee & Payment Terms
The Client agrees to pay the Agency a placement fee upon successful placement of a candidate, as per the fee structure set out below. The fee shall be calculated on the candidate's annual Cost to Company (CTC) including all fixed components.
| Annual CTC Slab | Placement Fee |
| Fee slabs will appear as you fill the form. |
| Parameter | Details |
| Invoice Trigger | On candidate's date of joining |
| Payment Due | Within — days of invoice |
| GST | GST @ 18% applicable as per prevailing rates |
| Late Payment Interest | 18% per annum on outstanding amount |
| Mode of Payment | NEFT / RTGS / Account Payee Cheque |
3Database Candidate Hiring Obligation
If the Client directly or indirectly engages, hires, or places any candidate who was introduced, referred, or presented by the Agency — whether through formal submission, interview arrangement, informal referral, or whose profile exists in the Agency's database — within a period of
12 (twelve) months from the date of such introduction or last contact, the Client shall:
- Immediately notify the Agency in writing within 7 (seven) days of such hiring.
- Pay the full applicable placement fee as per the fee structure in Clause 2, calculated on the candidate's annual CTC.
- Failure to notify shall be treated as a breach of this Agreement and shall additionally attract a penalty of 50% over and above the standard placement fee.
This clause applies regardless of whether the initial introduction resulted in a formal interview or placement, and irrespective of the channel through which the final hire is made (direct application, LinkedIn, referral, or otherwise).
4Replacement Guarantee
In the event a placed candidate voluntarily resigns or is terminated on performance grounds within the guarantee period from the date of joining, the Agency shall provide a suitable replacement candidate at no additional charge, subject to the following conditions:
- The Client must notify the Agency in writing within 7 days of the candidate's exit.
- The replacement guarantee is void if the Client changes the job role, CTC, reporting structure, or location after the candidate's joining.
- The guarantee does not apply in cases of termination due to misconduct, redundancy, or business restructuring.
- The replacement shall be provided within a reasonable timeframe subject to market availability.
5Confidentiality
Both Parties agree to maintain strict confidentiality of all proprietary, technical, business, financial, and candidate-related information exchanged during the course of this Agreement. Neither Party shall disclose such information to any third party without the prior written consent of the other Party. This obligation shall survive the termination of this Agreement for a period of 2 (two) years. The Parties acknowledge that a breach of this clause may cause irreparable harm, entitling the non-breaching Party to seek injunctive relief in addition to any other remedies available at law.
6Non-Solicitation
The Client agrees that during the term of this Agreement and for a period of 12 (twelve) months after its termination or expiry, it shall not directly or indirectly solicit, employ, engage, or attempt to hire any employee, consultant, or candidate who was introduced by the Agency, without the Agency's prior written consent and payment of the full applicable placement fee. Violation of this clause shall entitle the Agency to recover the full placement fee plus damages and legal costs.
7Responsibilities of the Agency
The Agency shall:
- Utilize industry best practices and professional judgment in performing the recruitment services.
- Treat all information received from the Client as strictly confidential, except as required by law.
- Comply with all applicable laws and regulations governing recruitment and employment in India.
- Maintain the accuracy and confidentiality of candidate profiles and data held in its database.
8Responsibilities of the Client
The Client shall:
- Provide accurate and complete job descriptions, requirements, and compensation details to the Agency.
- Provide timely feedback on shortlisted candidates to facilitate efficient placement.
- Respect the confidentiality of candidate profiles and not share them with third parties.
- Honour all payment obligations as set out in Clause 2 and Clause 3 of this Agreement.
- Promptly notify the Agency of any candidate hire that is subject to fee payment obligations.
9Indemnity & Limitation of Liability
Each Party shall indemnify and hold harmless the other Party from and against all losses, damages, costs, and expenses arising out of any breach of warranty, representation, or obligation under this Agreement. Neither Party shall be liable for any indirect, consequential, or special damages, including loss of profits, loss of data, or business interruption, arising out of or in connection with this Agreement.
10Term & Termination
This Agreement shall be effective from the date of execution and shall remain valid for a period of 1 (one) year, automatically renewing on the same terms unless terminated by either Party with 30 (thirty) days' written notice. Termination shall not relieve either Party of obligations accrued prior to the effective date of termination, including unpaid fees, pending placements, and obligations under Clauses 3, 5, and 6.
11Governing Law & Jurisdiction
This Agreement shall be governed by and construed in accordance with the laws of India, including the Indian Contract Act, 1872. Any dispute, controversy, or claim arising out of or in connection with this Agreement shall first be attempted to be resolved amicably through mutual negotiation. If unresolved within 30 days, the dispute shall be subject to the exclusive jurisdiction of the courts at —. The Parties waive any objection to the laying of venue in such courts.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
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For — (Agency)
Authorised Signatory
Designation
Company Name
Date: _______________
Seal:
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For — (Client)
Authorised Signatory
Designation
Company Name
Date: _______________
Seal:
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