Placement Agreement for Germany

Placement Agreement Template for Germany

A comprehensive legal agreement governed by German law that establishes the terms and conditions under which a recruitment agency provides candidate placement services to a client company. The agreement encompasses key aspects including service scope, fee structures, data protection compliance under GDPR, and specific obligations under German recruitment regulations (particularly AÜG and SGB III). It details the recruitment process, payment terms, replacement guarantees, and liability provisions while ensuring compliance with German labor laws and equal treatment requirements.

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What is a Placement Agreement?

This Placement Agreement template is designed for use under German law when establishing a formal relationship between recruitment agencies and companies seeking talent acquisition services. The document is essential for defining the terms of professional recruitment services, including candidate search, screening, and placement processes. It incorporates crucial elements required by German legislation, particularly the Arbeitnehmerüberlassungsgesetz (AÜG) and Social Security Code III (SGB III), while ensuring compliance with EU data protection regulations (GDPR). The agreement is structured to protect both parties' interests, clearly outlining service scope, fee structures, and liability limitations, making it suitable for both domestic and international recruitment activities within the German market.

What sections should be included in a Placement Agreement?

1. Parties: Identification of the placement agency and the client company, including full legal names, registration details, and addresses

2. Background: Context of the agreement, describing the client's recruitment needs and the agency's services

3. Definitions: Key terms used throughout the agreement, including 'Candidates', 'Placement', 'Placement Fee', and 'Recruitment Services'

4. Scope of Services: Detailed description of recruitment services to be provided by the agency

5. Agency Obligations: Specific responsibilities of the placement agency, including candidate screening and presentation processes

6. Client Obligations: Client's responsibilities, including providing accurate job descriptions and timely feedback

7. Fee Structure: Placement fees, payment terms, and conditions for fee becoming due

8. Data Protection: GDPR compliance measures and data handling procedures

9. Confidentiality: Protection of confidential information exchanged during the recruitment process

10. Term and Termination: Duration of agreement and termination provisions

11. Liability and Indemnification: Limitation of liability and indemnification obligations

12. General Provisions: Standard legal clauses including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Placement Agreement?

1. Replacement Guarantee: Terms for candidate replacement if placement fails within specified period - include when offering replacement guarantees

2. Exclusivity: Provisions for exclusive recruitment rights - include when agency has exclusive rights

3. International Placements: Additional terms for cross-border recruitment - include when handling international placements

4. Success Fee Structure: Alternative fee arrangements based on performance - include when using success-based compensation

5. Volume Discounts: Reduced fee structure for multiple placements - include when offering volume-based pricing

6. Direct Hire Restrictions: Restrictions on client directly hiring candidates - include when protecting agency interests

What schedules should be included in a Placement Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of placement fees, including calculation methods and payment terms

2. Schedule 2 - Service Levels: Specific performance metrics and service level commitments

3. Schedule 3 - Data Processing Agreement: Detailed GDPR-compliant data processing terms and procedures

4. Appendix A - Required Candidate Information: Template for standardized candidate information presentation

5. Appendix B - Job Requisition Form: Standard format for client job requirements submission

6. Appendix C - Placement Confirmation Form: Template for documenting successful placements and triggering fees

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Clauses
Relevant Industries

Professional Services

Technology

Manufacturing

Financial Services

Healthcare

Retail

Logistics

Construction

Energy

Telecommunications

Education

Consulting

Automotive

Pharmaceuticals

Relevant Teams

Human Resources

Legal

Procurement

Compliance

Operations

Talent Acquisition

Finance

Risk Management

Relevant Roles

HR Director

Talent Acquisition Manager

Legal Counsel

Procurement Manager

HR Business Partner

Recruitment Manager

Compliance Officer

Operations Director

Chief Human Resources Officer

Contracts Manager

General Counsel

Head of Talent Acquisition

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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