The Candidate Placement Agreement serves as a crucial legal framework for formalizing the relationship between recruitment agencies and companies seeking talent acquisition services in the Philippines. This document is essential when engaging professional recruitment services and must comply with Philippine labor laws, including the Labor Code, DOLE regulations, and the Data Privacy Act. It typically includes detailed provisions on service scope, fee structures, replacement guarantees, and confidentiality obligations. The agreement is particularly important in the Philippine context where recruitment agencies must maintain specific licenses and comply with strict regulatory requirements. It provides protection for all parties involved while ensuring transparent and professional recruitment practices.
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1. Parties: Identification of the recruitment agency and the client company, including complete legal names, registration details, and addresses
2. Background: Context of the agreement, including the recruitment agency's credentials and licenses, and the client's need for recruitment services
3. Definitions: Key terms used throughout the agreement, including 'Candidate', 'Placement', 'Services', 'Fees', and other relevant terminology
4. Scope of Services: Detailed description of recruitment services to be provided, including search, screening, and placement processes
5. Service Terms: Specific terms under which the services will be provided, including timelines and delivery mechanisms
6. Fees and Payment Terms: Structure of placement fees, payment schedules, and conditions for fee payment or refund
7. Warranties and Representations: Guarantees from both parties, including agency's licensing and client's authority to engage services
8. Confidentiality: Obligations regarding confidential information and compliance with the Data Privacy Act
9. Non-Solicitation: Restrictions on hiring each other's employees and approaching placed candidates
10. Liability and Indemnification: Allocation of risks and responsibilities between parties
11. Term and Termination: Duration of agreement and conditions for termination
12. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution
1. Replacement Guarantee: Terms for replacing candidates who leave within a specified period - include when offering replacement guarantees
2. International Placement Provisions: Additional terms for overseas placements - include when dealing with international recruitment
3. Volume Discounts: Special fee arrangements for bulk placements - include for large-scale recruitment agreements
4. Exclusivity Provisions: Terms for exclusive recruitment arrangements - include when offering exclusive services
5. Database Access: Terms for client access to agency's candidate database - include when providing database access
6. Success Metrics: KPIs and performance standards - include when establishing specific performance targets
1. Schedule 1 - Fee Structure: Detailed breakdown of all fees, including placement fees, retained search fees, and additional services
2. Schedule 2 - Service Level Agreement: Specific commitments on response times, candidate quality metrics, and service standards
3. Schedule 3 - Required Documentation: List of required documents for candidates and compliance requirements
4. Appendix A - Standard Operating Procedures: Detailed recruitment process flow and operational procedures
5. Appendix B - Compliance Checklist: Checklist of regulatory requirements and necessary certifications
6. Appendix C - Data Processing Agreement: Specific terms for handling personal data in compliance with the Data Privacy Act
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