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Placement Fee Agreement
"I need a Placement Fee Agreement for my tech startup based in Berlin, with a focus on contingency-based recruitment for software developers, including a 3-month replacement guarantee and a sliding scale fee structure starting from March 2025."
1. Parties: Identification and details of the recruitment agency and the client company
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Key terms used throughout the agreement including 'Candidate', 'Placement', 'Introduction', 'Engagement'
4. Scope of Services: Detailed description of recruitment services to be provided by the agency
5. Agency Obligations: Specific responsibilities of the recruitment agency including screening, introduction processes, and compliance with regulations
6. Client Obligations: Client's responsibilities including providing accurate job descriptions, timely information, and cooperation
7. Fee Structure: Calculation method for placement fees, including percentage rates and minimum fees
8. Payment Terms: Invoice timing, payment deadlines, and consequences of late payment
9. Data Protection: GDPR compliance measures and data handling procedures
10. Confidentiality: Protection of confidential information exchanged during the recruitment process
11. Term and Termination: Duration of agreement and circumstances for termination
12. Governing Law and Jurisdiction: Specification of German law application and jurisdiction
1. Replacement Guarantee: Terms for candidate replacement if placement fails within a specified period - include when offering guarantee periods
2. Volume Discounts: Fee reduction structure for multiple placements - include for larger clients with regular hiring needs
3. International Placements: Additional terms for cross-border recruitment - include when offering international recruitment services
4. Specific Industry Requirements: Additional terms for regulated industries - include for financial services, healthcare, etc.
5. Success Fee Structure: Alternative fee arrangements based on performance - include when offering contingency or retained search options
6. Non-Circumvention: Prevention of direct hiring of introduced candidates - include when there's significant risk of bypassing
7. Force Majeure: Provisions for unforeseen circumstances - include when requested by client or in uncertain market conditions
1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, including different position levels and specialties
2. Schedule 2 - Service Level Agreement: Specific performance metrics and service standards
3. Schedule 3 - Data Processing Agreement: Detailed GDPR-compliant data processing terms
4. Schedule 4 - Approved Client Locations: List of client offices/locations covered by the agreement
5. Appendix A - Required Candidate Information: Template for standard candidate information to be provided
6. Appendix B - Placement Confirmation Form: Standard form for confirming successful placements and triggering fees
Authors
Technology
Financial Services
Manufacturing
Healthcare
Professional Services
Retail
Education
Construction
Energy
Telecommunications
Automotive
Logistics
Media
Real Estate
Pharmaceutical
Human Resources
Legal
Procurement
Finance
Operations
Executive Leadership
Talent Acquisition
Compliance
Human Resources Director
Talent Acquisition Manager
Recruitment Manager
HR Business Partner
Chief Human Resources Officer
Legal Counsel
Procurement Manager
Finance Director
Operations Director
Managing Director
Chief Executive Officer
Head of Human Resources
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