Recruitment Services Agreement

What is a recruitment services agreement?

A recruitment agreement is a document between a recruiter and a client. The recruiter agrees to provide recruitment services to the client. Recruitment services can be defined as those in which the recruiter finds and screens job candidates for the client, and then presents suitable candidates to the client for employment (referred to as headhunting).

Recruiters can be extremely valuable resources, meaning that they often have a lot of experience in selecting the ideal candidates for the roles they are asked to fill.

In addition, many small businesses or individuals find that they simply don't have the time to devote to a search for potential candidates, so a recruiter is a great idea to help them.

What must a recruitment services agreement contain?

The main clauses that need to be agreed to in a recruitment services agreement include:

• the fees the recruiter will receive. The most common types of fee agreements are those in which the recruiter receives either a flat fee or a commission. Sometimes the recruiter will receive a combination of both. If neither of these types of agreements is applicable to the relationship, any other fee agreement can be entered in the form;
• the specifications of the candidates to be hired;
• the date by which a candidate must be found.

Who can enter into a recruitment services agreement?

A recruitment services agreement is entered into by a recruiting agency and the client organization looking to fill an employment vacancy. The recruiter and the client may be a business entity, such as:

• Corporation: the recruiter and the client can both be a corporate entity that may enter into this agreement;
• Partnership: the recruiter and the client may be a partnership;
• Other: if the recruiter or the client is not a structured entity, they may be a sole proprietorship.

The signatories to the contract must be at least majority age and not under a disability. The ages of majority are as follows:

• Alberta, Manitoba, Ontario, Prince Edward Island, Quebec, Saskatchewan: 18 years old.
• British Columbia, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Yukon: 19 years old.

What is the duration of a recruitment services agreement?

A recruitment services agreement can terminate by a certain deadline when no candidate has been placed, or it can be open-ended and last as long as needed to find a suitable candidate to fill the vacancy. Additionally, the agreement can provide for mutual termination by the parties in the event that a candidate cannot be found.

What has to be done after the recruitment services agreement is ready?

Once this document is completed, it must be signed by each party, either electronically or physically. Each party should then keep a copy and upload it to their personal computer for their records. After, the recruiter and the client should keep an open-line of communcation regarding candidates, scheduled meetings, job descriptions, suitability for the role, and more.

Which laws are applicable to a recruitment services agreement?

Recruitment services agreements are governed by contract law principles as well as human rights legislation on hiring practices. The pieces of legislation per province and territory governing human rights law includes:

• Ontario: Human Rights Code, R.S.O. 1990, c. H.19
• Alberta: Alberta Human Rights Act, RSA 2000, c A-25.5
• British Columbia: Human Rights Code, RSBC 1996, c 210
• Manitoba: The Human Rights Code, CCSM c H175
• Saskatchewan: The Saskatchewan Human Rights Code, 2018, SS 2018, c S-24.2
• Quebec: Charter of Human Rights and Freedoms, CQLR c C-12
• Nova Scotia: Human Rights Act, RSNS 1989, c 214
• Prince Edward Island: Human Rights Act, RSPEI 1988, c H-12
• Newfoundland and Labrador: Human Rights Act, 2010, SNL 2010, c H-13.1
• Yukon: Human Rights Act, RSY 2002, c 116
• Nunavut: Human Rights Act, CSNu, c H-70
• Northwest Territories: Human Rights Act, SNWT 2002, c 18
• New Brunswick: Human Rights Act, RSNB 2011, c 171
• Canada: Canadian Human Rights Act, RSC 1985, c H-6

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