Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.

When is notarization required?

Notarization depends on state law and the document’s subject. If the agreement grants authority for deeds or other recordable instruments, a notarized acknowledgement may be required.

How do I revoke an agent's authority?

Revoke in writing, provide notice per the agreement’s terms, retrieve physical credentials, and distribute the revocation to relevant departments and third parties.

What if names or IDs do not match?

Mismatched names can delay verification and undermine enforceability; correct names to match ID or corporate records and re-execute if necessary.

Are witness signatures ever needed?

Some states or specific authority types require witnesses; include conditional witness fields that appear only when the jurisdiction or policy requires them.

How long must I keep the executed agreement?

Retain for the agreement term plus applicable federal minimums (e.g., IRS three-year rule) and industry-specific periods such as HIPAA six-year retention.

Electronic Signature
Templates
HR
Employee Agency Agreement

Employee Agency Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYEE AGENCY AGREEMENT

Parties and Effective Date

This Employee Agency Agreement (the "Agreement") is entered into effective as of by and between:

Agency Name Agency Address Agency Contact Client (Employer) Name Client Address

Recitals

WHEREAS, Agency provides employee sourcing, recruitment and placement services; and WHEREAS, Client desires to engage Agency to source candidates for employment under the terms set forth below. The parties agree as follows.

Scope of Services

Agency will use reasonable efforts to identify and present candidates to Client for positions requested by Client. Placement scope (select all that apply): Permanent placement Temporary placement Contract staffing

Placement Request / Position Information

Position Title Department Reporting Manager Proposed Start Date Offered Salary / Rate Work Location

Candidate Information (If known)

Full Legal Name Address

Phone:

Email:

Date of Birth:

Employment History

Most Recent Employer

Title:

From:

To:

Primary Responsibilities Reason for Leaving Prior Employer

Title:

From:

To:

Primary Responsibilities Reason for Leaving

Education

Degree Institution Graduation Date

References

Reference 1

Phone:

Email:

Relationship:

Reference 2

Phone:

Email:

Relationship:

Reference 3

Phone:

Email:

Relationship:

Fees, Payment and Replacement

Client agrees to pay Agency the following placement fee:

Placement Fee (percent or fixed) Payment Terms Replacement Period Refund / Credit Policy

Taxes, Benefits and Expenses

Unless otherwise agreed in writing, Client is responsible for all employment taxes and benefits for placed employees and for reimburseable expenses incurred by employees while performing Client work.

Who pays benefits and taxes?

Confidentiality and Data Protection

Each party shall maintain the confidentiality of the other party's proprietary information and candidate data. Agency will process candidate data only for placement purposes and will implement reasonable technical and organizational measures to protect such data.

Non-Solicitation and Non-Circumvention

Client agrees not to solicit or employ any candidate presented by Agency for a period of months without paying the agreed placement fee. If Client directly hires a candidate introduced by Agency within this period, the placement fee is due in full.

Warranties, Indemnity and Limitation of Liability

Agency warrants that it will use commercially reasonable efforts to verify candidate information but does not guarantee candidate performance. Each party shall indemnify the other for claims arising from its own negligence or willful misconduct. Except for liability arising from gross negligence or willful misconduct, neither party's aggregate liability shall exceed the fees paid to Agency under this Agreement during the preceding twelve (12) months.

Term and Termination

This Agreement commences on the Effective Date and continues until terminated by either party upon thirty (30) days' written notice. Termination does not relieve Client of obligations to pay placement fees for hires made prior to termination.

Notices

Notice Address for Agency Notice Address for Client

Governing Law and Miscellaneous

This Agreement shall be governed by and construed in accordance with the laws of . Any dispute arising hereunder shall be resolved in the courts located in such jurisdiction unless otherwise mutually agreed in writing.

HR Disclosures and Candidate Authorization

At-Will Employment: Placement of any candidate is subject to Client's employment policies. Unless a separate written employment agreement between Client and a candidate states otherwise, such employment is at-will and may be terminated by either party at any time with or without cause.

Equal Opportunity: Client and Agency are equal opportunity organizations and do not discriminate on the basis of race, color, religion, sex, national origin, age, disability, genetic information or any other protected characteristic under applicable law.

Applicant Certification and Authorization (Candidate)

By providing candidate information, the undersigned certifies that all information supplied is true, correct and complete to the best of their knowledge. Candidate authorizes Agency and Client to contact prior employers and references and to conduct background, reference and qualification checks as permitted by law.

Candidate Consent to Contact & Background Checks Candidate consents to background checks and reference contacts Candidate consents to drug and medical screening where permitted

Candidate Printed Name

Date

Acknowledgements

Each party acknowledges that it has read and understands this Agreement, that it has the authority to enter into this Agreement, and that the terms set forth are binding and enforceable. Headings are for convenience only and do not affect interpretation.

Agency:

By:

Date:

Client (Employer):

By:

Date:

What the Employee Agency Agreement Covers

An Employee Agency Agreement is a written contract that sets out the authority an employee or designated agent has to act on behalf of an employer for specified matters, such as signing employment-related paperwork, representing the employer in administrative tasks, or executing transactions within defined limits. The agreement clarifies scope, duration, compensation (if any), confidentiality, and termination conditions, and it typically includes signature blocks, effective and expiration dates, and any required notarization or witness language to satisfy state rules and internal policy.

Why a Clear Agency Agreement Matters

A written Employee Agency Agreement reduces ambiguity about who may bind the employer, limits unauthorized commitments, documents consent to act, and creates an audit-ready record for compliance. It also helps HR and legal teams enforce internal controls, manage delegation, and demonstrate adherence to ESIGN and UETA when executed electronically.

Who Typically Prepares and Signs This Agreement

Employers, HR professionals, hiring managers, in-house counsel, and staffing agencies commonly prepare or request Employee Agency Agreements to document delegation of authority.

HR managers and talent teams who need delegated authority for onboarding and personnel actions.
Operations or office managers who require signing authority for routine administrative contracts.
Legal counsel or compliance officers who define limits and retain documentation for audits.

Essential Clauses to Include

A professionally drafted Employee Agency Agreement groups core provisions to reduce disputes and clarify responsibilities. The following components are standard and help define the agent’s power, employer oversight, and terminating conditions.

Scope of Authority

Describe actions the agent may take, any excluded actions, monetary caps, and decision boundaries to prevent overreach.

Effective Term

Specify start and end dates or event-based termination conditions, including automatic expiration triggers and renewal terms.

Duties and Limitations

List duties, reporting requirements, approval processes, and any circumstances requiring employer pre-approval.

Compensation

State whether the agent will receive pay, reimbursement, or no compensation for agency activities and how payments are processed.

Confidentiality

Require protection of proprietary or personal information and reference applicable privacy laws or company policies.

Revocation and Termination

Describe how either party can revoke authority, notice periods, and whether revocation must be written or notarized.

Step-by-Step: Create and Execute the Agreement

Follow these practical steps to complete an Employee Agency Agreement from draft to executed record.

01

Draft Terms: Define scope, limits, term, and reporting requirements before sharing the draft for review.
02

Internal Review: Have HR and legal confirm compliance with company policy and applicable law.
03

Signatures: Obtain signatures from authorized employer representative and the agent; notarize or witness if required.
04

Distribute Records: Provide executed copies to HR, the agent, and relevant departments; store per retention policy.

Configure an Electronic Workflow for This Agreement

A simple e-signature workflow reduces friction and preserves an audit trail. Configure fields and authentication appropriate to risk.

Field	Configuration
Signature Field	Required for agent and employer rep; include date field linked to signature.
Authentication	Use email plus optional SMS code or stronger ID verification for higher-value delegations.
Conditional Fields	Show witness or notary fields only when jurisdiction or company policy requires them.
Retention Settings	Enable automatic PDF export and secure archive with version history and audit trail.

Typical Electronic Execution Flow

Electronic signing follows predictable stages. Ensure each actor can authenticate and that the final record is exportable and auditable.

Upload Document: Sender uploads agreement and reviews fields before sending.
Place Fields: Add signature, date, initials, and conditional witness/notary fields.
Send to Signers: System emails signers or issues a secure signing link.
Complete and Archive: Signed parties receive copies; system stores PDF and audit trail.

Technical Requirements for Secure eExecution

Choose an e-signature platform that supports required authentication, secure storage, and file formats for your organization.

Authentication Options: Email, SMS, KBA, or enterprise SSO.
Integrations: Connectors for Salesforce, NetSuite, Google Workspace, and Microsoft 365.
File Support: Accepts PDF, DOCX, and exports ISO-compatible signed PDFs.

Key Dates and Timing to Track

Track effective dates, notice periods, and retention start points to maintain enforceability and compliance with company policy.

Effective Date:

When authority begins; use MM/DD/YYYY format.

Notice to Revoke:

Specify notice period (commonly 30 days) for unilateral termination.

Automatic Expiry:

Date or event when authority ends without further action.

I-9 Timing:

Complete I-9s per 8 CFR §274a.2 requirements when hiring an agent as an employee.

Record Export:

Export final PDF and audit trail immediately after execution.

Lifecycle Milestones from Draft to Archive

These sequential stages show core milestones and what to verify at each point before moving forward.

01

Draft and Approve

Prepare terms and obtain internal approvals from HR and legal before sharing with the agent.

02

Execute and Authenticate

Obtain signatures and complete any notarization, witness, or authentication steps required by policy or state law.

03

Distribute and Record

Provide executed copies to all parties and route to HR and document management systems.

04

Retain and Review

Store per retention policy and schedule periodic reviews of delegated authority.

Common Preparation Pitfalls to Avoid

Underspecified scope that allows unintended commitments or spending authority.
Mismatched names between the agreement and identification documents causing verification delays.
Missing witness or notary language when state law or corporate policy requires it.
Failing to document how and when authority may be revoked, causing operational confusion.

Consequences of an Incorrect or Missing Agreement

Contract Liability: Employer may be bound by unauthorized obligations if authority is unclear.

Regulatory Penalties: I-9 paperwork violations can lead to $281–$2,789 fines per violation.

Tax Withholding Risk: Incorrect TINs may trigger 24% backup withholding under IRS rules.

Recordkeeping Violations: Failure to retain records can violate IRS or HIPAA retention rules.

Fraud Exposure: Overbroad authority increases risk of misrepresentation or misuse.

Enforceability Disputes: Poorly executed signatures or missing consent can create litigation risk.

Security and Compliance Features to Require

Encryption: TLS 1.2/1.3; AES-256 at rest

Audit Trail: Detailed timestamps and IP records

Certifications: SOC 2 Type II; ISO 27001

HIPAA: BAA available when required

ESIGN / UETA: Meets ESIGN and UETA standards

21 CFR Part 11: Controls available for FDA-regulated records

Sample eSignature Vendor Pricing and Features

Comparison of common pricing and feature criteria across signNow and other major eSignature vendors to inform procurement decisions.

	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	Yes, 7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-World Examples of Use

These examples illustrate how organizations have applied agency agreements to streamline delegation and preserve compliance.

Optica Ventures LLC

Optica formalized delegation for administrative signings to speed onboarding and reduce executive workload.

Resulting approvals were completed faster without in-person meetings.
Brian Fitzgibbons, COO, reports that the interface is simple for the team and customers, improving turnaround while preserving clear accountability and an auditable trail.

Fertility Centers of Illinois

Medical center designated clinic managers to sign operational documents to avoid clinic delays.

Managers executed approvals during patient intake.
John Butler, Founder, noted the system's security and API integrations supported compliance needs while enabling remote execution and consistent recordkeeping.

Practical Tips for Accurate and Efficient Agreements

Apply the following best practices to reduce disputes and administrative friction when creating or managing Employee Agency Agreements.

Use Clear, Specific Language

Describe authorized acts, monetary limits, and reporting requirements precisely to avoid differing interpretations and to limit liability exposure.

Standardize Templates

Maintain a vetted company template to ensure consistent clauses across units and reduce attorney review time for routine delegations.

Log and Audit Changes

Record amendments, revocations, and renewals with timestamps and signers to maintain a defensible audit trail for compliance reviews.

Train Signers and Managers

Educate designated agents and approvers on authority limits, required approvals, and record retention responsibilities to prevent unauthorized commitments.

Frequently Asked Questions

Answers to common questions about creating, signing, and managing Employee Agency Agreements, focused on enforceability and practical issues.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.
When is notarization required?
Notarization depends on state law and the document’s subject. If the agreement grants authority for deeds or other recordable instruments, a notarized acknowledgement may be required.
How do I revoke an agent's authority?
Revoke in writing, provide notice per the agreement’s terms, retrieve physical credentials, and distribute the revocation to relevant departments and third parties.
What if names or IDs do not match?
Mismatched names can delay verification and undermine enforceability; correct names to match ID or corporate records and re-execute if necessary.
Are witness signatures ever needed?
Some states or specific authority types require witnesses; include conditional witness fields that appear only when the jurisdiction or policy requires them.
How long must I keep the executed agreement?
Retain for the agreement term plus applicable federal minimums (e.g., IRS three-year rule) and industry-specific periods such as HIPAA six-year retention.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now