Quick answer: A recruitment agency agreement is a written contract that spells out what the agency does – advertising roles, interviewing, reference checks – and how it gets paid. Fees are usually commission-based, calculated as a percentage of the successful candidate’s salary, plus reimbursed advertising costs. Critically, the employer pays this fee, not the candidate, so the agreement should confirm that upfront.
Recruitment agencies have become part of our employment landscape in Australia particularly in the mining, IT, professional industries and public sector. Short term labour hire agencies also serve a useful purpose.
Many businesses prefer to use a recruitment agency to hire staff especially in the Mining, IT, professional industries and Public sector.
Many corporations are choosing to outsource their recruitment needs. One perceived benefit for employers is that a recruitment agent can tap into an already existing data base of qualified staff in a specific industry.
For employees, signing up with a recruitment agency saves time and effort in applying for multiple positions with various potential employers.
A good agent will match the right person to their ideal position to get the perfect fit. They can also assist the employer to identify the role, skills and attributes that are required.
A recruitment agent generally contracts with the employer to perform the following tasks concerning the position:-
- promotion and advertising of the position;
- interviewing of candidates;
- assessing suitability of candidates;
- reference checks;
- preparation of employment contract.
Payment is usually on a commission basis, based on the salary of the successful applicant, and advertising and promotional costs reimbursed. There may be other fees involved, for example, if a short term position eventuates into an ongoing position. It is the employer who is responsible for paying the agent, not the successful candidate.
If you are a recruitment agent or in the position of filling jobs for employers, then it is wise to implement a recruitment agency agreement, which clarifies your role and obligations (the tasks that you are agreeing to complete), payment of fees and other costs.
You might also be interested in
Consultancy agreements – why we need them
Streamline the process of employing new staff by using employment contract templates
The difference between casual and part time employees
Employee or contractor – what’s the difference?
Employers warned – take sexual harassment seriously