Can this be e-signed under U.S. law?

Yes. The ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA permit electronic signatures for most commercial contracts if intent, consent, attribution, and retention requirements are met.

When is notarization required?

Notarization is rarely required for placement agreements; notarization or witnesses may be needed for attached affidavits, powers of attorney, or state-specific forms—verify local law before execution.

What signature authority is needed?

Signers should be authorized officers or agents with authority to bind their organizations; include name and title in the signature block to show authority and attribution.

How do we revoke or amend the agreement?

Amendments should be in writing and signed by both parties. For revocation, follow termination clauses in the agreement and document consent to any post-termination obligations.

What if a candidate is rehired?

Specify rehire treatment in the agreement. Without clear language, disputes can arise over fee entitlement; include explicit clauses for rehired or reintroduced candidates.

How long must we retain records?

Retention depends on the document type and legal obligations: IRS records typically 3 years (IRC §6501(a)), I-9s per 8 CFR §274a.2, HIPAA records 6 years (45 CFR §164.530(j)); state rules may require longer retention.

Electronic Signature
Templates
HR
Employment Agency Agreement

Employment Agency Agreement

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

EMPLOYMENT AGENCY AGREEMENT

Parties and Contact Information

Agency Name Agency Contact (Name, Title) Agency Address Agency Phone / Email Client Name Client Contact (Name, Title) Client Address Client Phone / Email

This Employment Agency Agreement (the Agreement) is entered into by and between the Agency named above and the Client named above effective as of (Effective Date). The Agency will source, evaluate and present candidates for employment to the Client in accordance with the terms set forth below.

Scope of Services

The Agency will identify and present candidates for the positions requested by the Client. Services provided may include candidate sourcing, initial screening, skills verification, reference collection, and interview coordination. Specific position details or requirements shall be set forth in the Position Description field below.

Position Description

Fees and Payment

Client agrees to pay Agency fees as follows: a placement fee equal to of the candidate's first year gross annual compensation and/or a flat fee of . Invoices are payable within days of invoice receipt.

Invoice Instructions / Billing Contact Replacement Guarantee

Agency guarantees replacement for any candidate who separates from employment for cause or who is terminated for poor performance within days of the candidate's start date, subject to Client having paid fees in full and having promptly notified Agency in writing of the separation.

Exclusivity

Exclusive search for the specified role Non-exclusive search

Candidate Submission and Candidate Details

When a candidate is submitted for consideration, the Agency will provide to the Client the Candidate Information below. Client acknowledges that it will verify candidate details and obtain any candidate consents required by law prior to hire.

Candidate Full Legal Name Candidate Address

Phone:

Email:

Position Information (for each candidate)

Proposed Job Title Department

Reporting Manager:

Proposed Start Date:

Proposed Compensation (Salary / Hourly)

Employment History (Provide at least two)

Employer 1 - Company Name

Title:

Dates Employed:

Responsibilities Reason for Leaving Employer 2 - Company Name

Title:

Dates Employed:

Responsibilities Reason for Leaving

Education

Highest Degree or Certification Institution Graduation Date

References (Provide three professional references)

Reference 1

Phone:

Email:

Relationship:

Reference 2

Phone:

Email:

Relationship:

Reference 3

Phone:

Email:

Relationship:

Legal Disclosures and Authorizations

At-Will Employment: Client acknowledges that placement of a candidate by Agency does not create a contract for employment of any particular duration, unless a written employment agreement signed by Client and the candidate states otherwise. Employment remains at-will to the extent permitted by applicable law.

Equal Opportunity: Client represents and warrants that it is an equal opportunity employer and that it will not discriminate in hiring decisions on any unlawful basis. Agency shall recruit candidates in accordance with applicable nondiscrimination laws.

Client authorizes Agency to obtain background checks, employment verifications, and reference checks on candidates where permitted by law. Client further confirms that it will obtain any candidate consents required by law prior to submission of background or sensitive personal data.

Confidentiality and Data Protection

Each party shall treat all candidate information and proprietary business information received from the other party as confidential and shall not disclose such information except as required to perform obligations under this Agreement or as required by law. Parties shall implement reasonable technical and organizational measures to protect personal data and comply with applicable data protection laws.

Representations, Warranties and Indemnification

Agency represents that it will exercise commercially reasonable efforts to verify candidate qualifications, but Agency does not warrant the accuracy of candidate-provided information beyond such reasonable verification. Client shall be responsible for all final hiring decisions and for verifying qualifications, credentials and legal authorization to work. Client agrees to indemnify, defend and hold Agency harmless from all claims arising out of Client's hiring, employment, supervision, or termination of any candidate presented by Agency, except where such claims arise directly from Agency's gross negligence or willful misconduct.

Limitation of Liability

Except for liability arising from willful misconduct or gross negligence, in no event shall either party be liable to the other for any indirect, incidental, special or consequential damages, and Agency's total aggregate liability under this Agreement shall not exceed fees paid to Agency for the specific placement giving rise to the claim.

Term and Termination

This Agreement commences on the Effective Date and continues until terminated by either party upon written notice to the other. Termination shall not affect Client's obligation to pay Agency fees for candidates already placed or for introductions made prior to termination in accordance with the fee provisions herein. Any post-termination replacement guarantees shall remain in effect for placements made prior to termination in accordance with the Replacement Guarantee terms above.

Notices

Agency Notice Address Client Notice Address

Miscellaneous

This Agreement constitutes the entire agreement between the parties relating to Agency's services and supersedes all prior proposals, negotiations and communications. Any amendment or waiver must be in writing and signed by authorized representatives of both parties. This Agreement shall be governed by the laws of the jurisdiction specified by the Client in good faith and venue for disputes shall be exclusive to such jurisdiction unless otherwise agreed in writing.

Applicant Certification (Acknowledgement)

By checking the box below, Client certifies that, to the best of Client's knowledge, candidate information provided by Agency is accurate and that Client will obtain candidate consent required by applicable law prior to collecting or processing any sensitive personal data.

Client certifies that all candidate information used for hiring decisions will be verified and that Client will comply with applicable employment and privacy laws.

Signatures

Agency:

By:

Date:

Client:

By:

Date:

What an Employment Agency Agreement Covers

An Employment Agency Agreement is a contract between a hiring entity and a recruitment or placement agency that defines how candidates are sourced, fees and commission structures, exclusivity, placement terms, and post-placement obligations. The agreement typically specifies the scope of services, the period during which candidates may be presented, payment timing and conditions for fee refunds or replacements, confidentiality and data handling expectations, governing law, and termination rights. Clear, written agreements reduce disputes about candidate ownership, fee triggers, and responsibilities for background checks or compliance with immigration and employment verification rules.

Why a Written Agreement Matters

A formal Employment Agency Agreement clarifies fees, timelines, and responsibilities, reducing the risk of disputes and ensuring both parties meet regulatory and documentation obligations such as I-9 verification and tax reporting.

Who Typically Uses an Employment Agency Agreement

Employers, staffing firms, and independent recruiters use this agreement to set expectations and protect placement fees.

Corporate HR teams and hiring managers who engage external recruiters for permanent or contract hires.
Staffing and recruitment agencies placing temporary, contract, or permanent workers on behalf of clients.
Independent headhunters and retained search firms working on exclusive candidate searches.

Use the agreement to document placement ownership, fee triggers, candidate replacement terms, confidentiality, and governing law preferences before any candidate submission.

Essential Clauses to Include

A professional Employment Agency Agreement balances operational detail with clear legal protections to minimize disputes and comply with applicable employment and tax rules.

Parties

Identify full legal names and business entities for the client and the agency, including mailing address and taxpayer identification when relevant.

Scope of Services

Describe roles to be filled, search methods, candidate presentation process, and whether placements are permanent, temp-to-hire, or contract-based.

Fees and Commissions

Specify fee calculation (flat, percentage of first-year salary, or hourly markup), invoicing schedule, and when the fee becomes due.

Exclusivity and Ownership

Define exclusive vs non-exclusive engagement, candidate ownership period, and how previously known or supplied candidates are treated.

Term and Termination

State agreement duration, notice requirements, termination for convenience or for cause, and obligations that survive termination.

Representations and Compliance

Include warranties on candidate eligibility, background checks, and compliance with immigration and employment verification laws.

Step-by-Step: Completing the Agreement

Follow these sequential steps to prepare, review, and execute the Employment Agency Agreement correctly.

01

Gather Parties: Collect full legal names, addresses, and taxpayer IDs for both parties.
02

Define Scope: Specify positions, search methods, and whether the search is exclusive or not.
03

Set Fees: Choose fee structure, payment timing, and replacement or refund conditions.
04

Sign and Retain: Execute signatures, note the effective date, and store the signed agreement securely.

Customizing and Automating Online Workflows

Configure the digital workflow to mirror your approval steps and reduce manual handoffs.

Field	Configuration
Authentication	Email link, SMS code, or advanced ID verification
Conditional Fields	Show fee tiers only when relevant role type selected
Templates	Save reusable agreement versions for repeat clients
Bulk Send	Use bulk mode for mass, identical candidate submissions

Where to Send and How Signatures Flow

Understand each step in the routing and signature lifecycle to ensure every signer receives and completes their portion in order.

Upload Document: Add the final agreement PDF or DOCX to the eSigning platform.
Place Fields: Insert signature, date, and initial fields for each party.
Assign Signers: Add signer emails and set signing order where required.
Distribute Copies: Automatically send completed copies and store audit trails.

Technical and Platform Requirements for eSubmission

Confirm file format, signer authentication, and audit trail needs before starting the eSigning process.

File Formats: PDF, DOCX supported
Authentication: Email, SMS, or KBA
Integrations: CRM and HR systems

Choose a solution that supports required integrations, audit trails, and any industry compliance such as HIPAA or 21 CFR Part 11 when relevant.

Common Timelines and Deadlines to Track

Track key dates to avoid missed payments, expired candidate ownership windows, or compliance lapses.

Effective Date Entry:

Enter on execution to lock in obligations and retention start.

Candidate Ownership Period:

Commonly 60–180 days; fee triggers apply within this window.

Replacement Period:

If candidate leaves, agency often provides replacement within 30–90 days.

Invoice Payment Terms:

Standard 30 days net; specify late fee or interest terms precisely.

I-9 Retention:

Retain employment verification per 8 CFR §274a.2 retention rules.

Key Milestones from Search to Placement

Sequence the major stages so both parties know when responsibilities and fees activate.

01

Agreement Execution

Contract signed and effective; search can begin.

02

Candidate Submission

Agency presents qualified candidates for client review.

03

Offer and Acceptance

Client extends offer; acceptance triggers placement fee conditions.

04

Post-Placement Period

Replacement obligations and warranty period apply after hire.

Common Mistakes to Avoid

Failing to define candidate ownership windows clearly, leading to disputes over who sourced a hire.
Leaving fee formulas vague, such as saying 'reasonable fee' instead of a precise percentage or flat amount.
Not specifying whether fees apply to rehired or previously submitted candidates, risking duplicate claims.
Overlooking compliance steps like background checks and immigration verification that affect liability and timing.

Consequences of an Incorrect or Missing Agreement

Contract Liability: Damages for breach may include fee refunds and legal costs

Fee Disputes: Unclear terms can lead to contested invoices and withheld payments

Employment Misclassification: Incorrect statuses can trigger IRS and DOL scrutiny

I-9 Violations: Potential fines for improper verification (8 CFR §274a.2)

Data Breach Risk: Poor handling of candidate PII can trigger regulatory action

Reputational Harm: Disputes can damage agency-client relationships and referrals

Data Security and Compliance Considerations

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

Audit Trail: Timestamped events and signer attribution

Certifications: SOC 2 Type II, ISO 27001 available

HIPAA: BAA required for protected health information

ESIGN/UETA: Supports ESIGN Act and UETA legal frameworks

Access Controls: Role-based permissions and session controls

Industry Examples Illustrating Typical Use

These scenarios show how standard clauses apply in common placement contexts and highlight practical drafting choices.

Real Estate Placement

A brokerage retained an agency for commercial leasing recruiters

Agency agreed to a 20% fee of first-year salary
The contract defined a 120-day candidate ownership window, replacement terms, and escrow terms for contested invoices to reduce disputes and speed payment.

Healthcare Placement

A clinic engaged a staffing firm for licensed nurses

Agreement required agency to verify licenses and provide HIPAA-compliant candidate records
The contract included a HIPAA addendum, background check requirements, and a 30-day replacement guarantee tied to the fee refund policy.

eSignature Pricing and Feature Comparison

Compare starting prices and core capabilities across common eSignature providers; signNow appears first per vendor comparison conventions and column parity is preserved.

	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 free trial	Trial available	Trial available	Trial available	Trial available
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	No cap	No cap	No cap

Frequently Asked Questions

Answers to common questions about enforceability, signatures, notarization, and post-execution steps for Employment Agency Agreements.

Need help? Contact support

Can this be e-signed under U.S. law?
Yes. The ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA permit electronic signatures for most commercial contracts if intent, consent, attribution, and retention requirements are met.
When is notarization required?
Notarization is rarely required for placement agreements; notarization or witnesses may be needed for attached affidavits, powers of attorney, or state-specific forms—verify local law before execution.
What signature authority is needed?
Signers should be authorized officers or agents with authority to bind their organizations; include name and title in the signature block to show authority and attribution.
How do we revoke or amend the agreement?
Amendments should be in writing and signed by both parties. For revocation, follow termination clauses in the agreement and document consent to any post-termination obligations.
What if a candidate is rehired?
Specify rehire treatment in the agreement. Without clear language, disputes can arise over fee entitlement; include explicit clauses for rehired or reintroduced candidates.
How long must we retain records?
Retention depends on the document type and legal obligations: IRS records typically 3 years (IRC §6501(a)), I-9s per 8 CFR §274a.2, HIPAA records 6 years (45 CFR §164.530(j)); state rules may require longer retention.

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