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Agreement Between Company and Employment Agency for Skilled Worker Services

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Agreement Between Company and Employment or Temporary Employment Agency to Provide Professional or Skilled Worker Services

Agreement made on the day of , 20 , between , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Company, and , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Agency.

Whereas, Company wishes to contract with Agency for the services of Agency in providing professional or skilled labor in the general fields of (description of fields of professional and/or skilled labor) (hereinafter called Services).

Whereas, Agency is ready, willing, and able to provide such Services as may be required by Company.

Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

I. Services

A. Agency understands and agrees that Services to be provided Company under and pursuant to this Agreement shall be so provided on a day-to-day, as-needed, basis and that Company in its sole discretion shall determine its need, if any, for Services or the continuation of Services as may be provided by Agency under and pursuant to this Agreement.

B. Agency agrees to provide Services upon the written request of Company and further agrees that the cost of such Services shall not exceed the limitation of cost set forth by Company's request.

C. When requesting Services, Company shall specify the following:

1. Labor classification(s) required;

2. The applicable hourly or daily price for each specified labor classification;

3. The maximum allowable cost for each labor classification;

4. The duration of Services applicable to the request, including beginning and, when applicable, ending .

D. Labor classifications applicable to Services to be provided under and pursuant to this Agreement shall be limited to those classifications set forth by Exhibit A. Exhibit A may be revised from time to time by mutual agreement between the parties. Exhibit A is attached to this Agreement and, by this reference, made a part of this Agreement.

E. Company shall have sole discretion to establish the minimum qualifications necessary for the performance of any Service to be rendered under and pursuant to this Agreement. Further, if at any time and at its sole discretion, Company determines that the Services performed under and pursuant to this Agreement by any of the persons provided by Agency are not satisfactory, Company will so notify Agency in writing and Agency shall immediately withdraw such individual and, at Company's option, furnish an individual who meets the qualifications required.

II. Compensation

For Services provided under and pursuant to this Agreement and the written requests of Company, Agency shall be compensated as provided below:

A. For labor expended by Agency in providing Services under and pursuant to this Agreement, Agency shall be paid an amount equal to the applicable hourly or daily rate multiplied by the total number of hours or days actually worked by persons provided by Agency. The hourly or daily rate shall not exceed those rates set forth by Exhibit A applicable to the labor classifications set forth by Company's written requests.

B. Actual expenses of persons provided by Agency incurred in the providing of services and directly related to such Services shall be reimbursed by Company to Agency at actual cost when supported by appropriate receipts.

III. Payment

Payment for services provided Company under and pursuant to this Agreement shall be net days from the date of receipt by Company of Agency's invoice. Agency's invoice shall set forth, as a minimum, details of labor expended and expenses actually incurred as provided below:

A. Agency's invoice shall set forth the date or dates that persons provided by Agency actually worked in providing Services under and pursuant to this Agreement. Beginning and ending dates shall be shown whenever Services are provided uninterrupted over a period of time and individual dates shall be shown whenever Services have been provided on a day-to-day basis. Agency's invoice shall clearly show the labor classification, name(s) of Agency-provided worker(s), applicable labor rate(s), and the total dollars claimed for the period. Whenever Agency provides services for an extended period of time, Agency shall submit its invoices for labor expended no less often than once each calendar month.

B. The expenses incurred by Agency-provided workers directly related to the providing of Services under and pursuant to this Agreement shall be reimbursed by Company to Agency. Such expenses shall be supported by appropriate receipts and such other supporting details as may be required by Company. Payment shall be net days from the date of receipt of invoice.

IV. Agency-Provided Workers

Agency-provided workers who perform Services for Company under and pursuant to this Agreement shall be bound by the provisions of this Agreement and Agency shall, at the request of Company, furnish to Company satisfactory evidence to that effect.

V. Confidentiality

Agency agrees that: (a) all knowledge and information that Agency may receive from Company or employees or consultants of Company, or by virtue of the performance of services under and pursuant to this Agreement, relating to inventions, products, processes, machinery, apparatus, prices, discounts, costs, business affairs, future plans, or technical data that belong to Company or to those with whom Company has contracted regarding such information; and (b) all information provided by Agency to Company in reports of work done, together with any other information acquired or gained by Agency or by Agency-supplied workers, shall for all time and for all purposes be regarded by Agency as strictly confidential and held by Agency in confidence, and solely for Company's benefit and use, and shall not be used by Agency or directly or indirectly disclosed by Agency to any person whatsoever excepting to Company or with Company's written permission. Upon the request of Company, Agency shall require that Agency-supplied workers assigned to provide Services under and pursuant to this Agreement execute a supplementary agreement of confidentiality and assignment of inventions as set forth by Exhibit B attached to this Agreement, which Exhibit, by this reference, is incorporated into and made a part of this Agreement.

VI. Inventions and Copyrightable Works

A. Agency further agrees that on behalf of Agency, Agency's employees and representatives, and Agency-supplied workers, Agency will promptly communicate and disclose to Company or to its nominee, all computer programs, documentation, software, and other copyrightable works (the copyrightable works), discoveries, improvements, and inventions (the inventions) conceived, reduced to practice, or made by Agency or by Agency-supplied workers, whether solely or jointly with others, during the term of this Agreement:

1. Along the lines of Company's products or applicable to or useful with the products;

2. Relating to Company's manufacturing or other processes or procedures or to machinery or apparatus useful in connection with such processes or procedures;

3. Relating to Company's investigations or to the nature of its business at the time of the invention;

4. Resulting from or related to any work Agency or Agency-supplied workers may do on behalf of Company or at its request. All such inventions and copyrightable works that Agency is obligated to disclose, whether patented or not, shall be and remain entirely the property of Company or its nominees, successors or assigns. It is agreed that this is a work-made-for-hire agreement and that all such copyrightable works are works made for hire that shall be the exclusive property of Company. Further, Agency agrees to assign and assigns to Company any rights it may have in such copyrightable works.

B. Agency and Agency-supplied workers will assist Company and its nominees, successors, or assigns, upon request, during and following the term of this Agreement, at the expense of Company, to obtain and maintain for its own benefit, patents for such inventions in the United States Patent and Trademark Office. Such assistance shall include, but not be limited to, the execution and delivery of specific assignments of any such invention and all domestic patent rights in the invention, and all other papers and documents that relate to securing and maintaining such patent rights, and the performance of all other lawful acts, as may be deemed necessary or advisable by Company or its nominees, successors, or assigns.

VII. Agency Representation

Agency represents and warrants that Agency and its Agency-supplied workers have the right to perform the services required under and pursuant to this Agreement without violation of obligations to others, and that Agency and its Agency-supplied workers have the right to disclose to Company all information transmitted to Company in the performance of Services under and pursuant to this Agreement, and Agency agrees that any information submitted to Company, whether patentable or not, may be used fully and freely by Company.

VIII. Duration and Termination

A. This Agreement shall become effective as of the date stated above and shall continue for a period of . In addition, this Agreement may be terminated pursuant to the following:

1. Immediately upon death or incapacity of any person employed or supplied by Agency who, in the sole opinion of Company, was essential for the successful performance of Agency's obligation under and pursuant to this Agreement;

2. By either party, with or without cause at any time, upon days' prior written notice; or

3. By Company, at any time, upon days' prior written notice, if Agency assigns this Agreement, or any right or obligation under this Agreement, without Company's prior written consent; or if there is a change in the control or management of Agency that is unacceptable to Company; or if Agency ceases to function as a going concern, or to conduct its operations in the normal course of business.

B. The obligations of Agency under Sections V and VI above shall survive any expiration or termination of this Agreement.

C. Upon termination of this Agreement, Agency will return to Company all written information, drawings, models, and other materials or files supplied to Agency or created by Agency at the expense of Company.

IX. Indemnification

Agency agrees to indemnify and hold Company, its officers, agents, and employees harmless from and against any and all liabilities, damages, losses, actions, or causes of action, costs, and expenses (including attorney fees), whether relating to property of Company or of any third party, or to personal injury or death, arising out of or in any way contributed to by the acts or failure to act of the Agency, its agents, employees, officers, or Agency-supplied workers.

X. Indemnification Contractor

The status of Agency is that of an independent contractor and not of an agent or employee of Company and, as such, Agency shall not have the right or power to enter into any contracts, agreements, or any other commitments on behalf of Company.

XI. Insurance

Agency shall maintain in full force and effect, and upon the request of Company, shall furnish evidence satisfactory to Company that Agency maintains the following insurance coverages:

A. Comprehensive general liability insurance in the minimum amount of $ combined single limit that will cover any and all losses to Company property, property of third parties, or personal injuries caused by the acts or omissions of Agency.

B. For any vehicle used by Agency or Agency-supplied workers in providing Services under and pursuant to this Agreement, vehicle liability insurance in the minimum amount of $ combined single limit.

C. Agency will carry workers' compensation and employer's liability insurance in accordance with applicable law.

XII. Assignment

The rights and obligations of Agency under this Agreement are personal to Agency and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of Agency.

XII. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

XIII. Notices

Any notice provided for or concerning this Agreement shall be in writing and be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

XIV. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

XV. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if evidenced in writing signed by each party or an authorized representative of each party.

XVI. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

XVII. Mandatory Arbitration

Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

WITNESS our signatures as of the day and date first above stated.

________________________________

Company

By_____________________________

________________________________

(Name and Office in Corporation)

________________________________

Agency

By_________________________________

_________________________________

(Name and Office in Corporation)

Enter text✕

What this Agreement Covers and why it matters

An Agreement Between Company and Employment Agency for Skilled Worker Services is a written contract that sets the working relationship, responsibilities, and commercial terms when a staffing agency supplies skilled labor to a hiring company. It defines scope of services, fee structure, assignment duration, worker classification, background and compliance obligations, confidentiality and IP protections, insurance and indemnity, termination rights, and data-handling expectations. The agreement allocates operational and legal risk between the company and agency and creates documentary evidence needed for payroll, tax, immigration checks, and regulatory compliance during and after the placement.

Why use a formal agency placement agreement

A clear written agreement reduces ambiguity about who hires, supervises, and pays a skilled worker and establishes compliance steps for payroll, taxes, and background checks.

Why use a formal agency placement agreement

Who commonly executes this type of staffing agreement

The contract is used by organizations that engage outside staffing firms to supply technicians, tradespeople, healthcare professionals, IT contractors, or other skilled workers.

  • In-house HR and Talent Acquisition teams managing contingent workforce programs
  • Specialist employment and staffing agencies placing temporary or contract skilled labor
  • Company legal or procurement teams negotiating commercial and compliance terms

Legal, payroll, and hiring managers should review the agreement before signing to confirm classification, tax handling, and any state- or industry-specific requirements.

Core clauses to include in a professional placement agreement

A complete agreement organizes commercial terms, operational responsibilities, and compliance obligations so both parties can manage placements consistently and limit downstream disputes.

Parties

Identify the legal entities entering the contract, authorized signers, and any parent or affiliate obligations; include full legal names and addresses for service of process.

Scope of Services

Describe worker categories, required qualifications, certifications, deliverables, assignment location, working hours, and any project or milestone expectations tied to placements.

Fees and Billing

Specify fee structure (mark-up, hourly rate, fixed fee), invoicing frequency, payment terms, expense reimbursement, and procedures for dispute or deduction of payroll taxes.

Worker Classification

State that the agency is the employer of record where applicable, indicate responsibility for payroll taxes, benefits, and workers' compensation, and describe cooperation on classification audits.

Confidentiality & IP

Include non-disclosure obligations, ownership or assignment of IP created by the worker, handling of proprietary information, and permitted disclosures to third parties.

Termination & Remedies

Set notice periods, cause and convenience termination rights, fees on early termination, cure periods for breaches, and limits on liability and indemnity caps.

Step-by-step: how to complete and execute the agreement

Follow these steps to finalize the placement contract accurately and efficiently.

  • 01
    Draft: Populate party details, effective date, and scope of services.
  • 02
    Review: Have legal, HR, and payroll verify classification and compliance terms.
  • 03
    Authorize: Obtain authorized signatures from both parties and required witnesses or notarizations.
  • 04
    Distribute: Circulate executed copies to HR, payroll, agency operations, and the placed worker's file.

How to configure the document for online completion and routing

Set up a repeatable digital workflow to capture required fields, approvals, and audit data for every placement.

Field Configuration
Authentication Method Use email plus SMS code or two-factor for higher-assurance signers
Signature Order Set company and agency signer order with conditional fields
Template Reuse Save as a template to auto-populate recurring placement details
Integrations Connect to HRIS or ATS to push signer and payroll data

Delivery and technical options for signed agreements

Choose distribution channels and authentication that match your compliance risk and operational needs.

  • Email Delivery: Common for low-risk signatures; include audit trail metadata.
  • In-person or RON: Use in-person notarization or RON for higher-assurance notarized acknowledgements.
  • System Integration: Store executed PDFs in your HRIS, document management, or cloud storage.

Confirm chosen methods meet any industry or state authentication and retention requirements before finalizing the workflow.

Where to send and store the executed agreement

Proper routing ensures payroll, compliance, and operations can act on worker placements without delay.

  • Agency Records: Agency retains original contract, worker files, and proof of credentials.
  • Company HR: HR keeps a executed copy for onboarding and benefits coordination.
  • Payroll: Send fee schedules and worker hours to payroll for accurate invoicing.
  • Central Archive: Store a searchable signed PDF with audit trail in your DMS or cloud repository.

Common timeframes and notice periods to track

Track key dates to avoid missed obligations for onboarding, billing, renewals, and termination.

Effective Date:

Agreement performance begins on the MM/DD/YYYY effective date.

Worker Start:

Worker must be onboarded by the mutually agreed start date.

Invoicing:

Invoices issued per fee schedule; typical payment terms are Net 30.

Renewal Notice:

Provide renewal or non-renewal notice within the timeframe specified in the contract.

Termination Notice:

Follow the contractual notice period for convenience or cause termination.

Key procedural milestones from negotiation to ongoing compliance

This milestone sequence helps teams coordinate internal review and worker onboarding.

01

Negotiation Complete

Agree on fees, scope, and compliance terms before signatures are requested.

02

Execution

Collect authorized signatures and any required notarizations or witness attestations.

03

Worker Onboarding

Complete I-9, background checks, and credential verification before start date.

04

Ongoing Compliance

Maintain records, insurance certificates, and continuing credential checks as required.

Common pitfalls to avoid when preparing the agreement

  • Unclear worker classification leads to payroll tax disputes and potential fines; clearly state employer-of-record responsibilities and tax withholding obligations.
  • Vague scope or deliverables creates scope creep and billing disputes; detail expected duties, hours and deliverables for each placement.
  • Missing or inconsistent signer authority causes enforceability issues; confirm signers have corporate authority and list titles next to names.
  • Insufficient data handling clauses can trigger HIPAA or privacy violations where health or sensitive personal data is processed or transferred.

Potential legal and financial consequences of errors

Tax Penalties: Backup withholding or IRS penalties
I-9 Violations: Civil fines for incomplete I-9 records
HIPAA Exposure: Breach liability when PHI is mishandled
Breach Damages: Contract damages and cost of replacement staffing
Regulatory Fines: State or federal compliance penalties
Reputational Harm: Loss of client or public trust

Practical tips to speed approval and reduce risk

Adopt consistent practices so recurring placements process quickly and securely.

Standardize Templates
Use a single approved template for similar placements to reduce negotiation time and ensure consistent compliance controls across business units.
Pre-approve Rates
Maintain an approved fee schedule to avoid delays; route exceptions through procurement with documented authorization.
Automate Verification
Integrate background checks, credential verification, and I-9 workflows with the staffing platform to shorten onboarding timelines.
Keep Audit Trails
Capture timestamps, IP addresses, and signer authentication method to support enforceability and respond to audits efficiently.

Real-world scenarios and how the agreement is used

Two typical use cases illustrate clause selection and practical document handling for skilled-worker placements.

Healthcare Staffing

A hospital engages an agency to supply certified nurses for a temporary unit.

  • The agreement requires BAA and license verification.
  • The contract includes shift confirmation, credential vetting procedures, and indemnity language to manage patient-data risks and licensing compliance.

Construction Trades

A general contractor sources skilled carpenters through an agency for a multi-month project.

  • Lien waiver clauses are included.
  • The agreement attaches project schedules, safety requirements, and daily hour reporting to control liability and ensure timely invoicing.

eSignature vendor pricing and capability snapshot for signing placement agreements

Compare common eSignature vendor pricing and key capabilities relevant to executing and storing staffing agreements. signNow is listed first per platform comparison practice.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions and practical answers

Answers to frequent execution and compliance questions when preparing agency placement agreements and using eSignature tools.


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