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Employment Supply Agreement

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EMPLOYMENT SUPPLY AGREEMENT

This Employment Supply Agreement (the Agreement) is entered into as of by and between the following parties.

Parties

Definitions and Scope

For purposes of this Agreement, "Candidate" means any individual supplied by Supplier to Client for temporary, contingent, or direct placement. Supplier will supply Candidates to perform the services and positions described in individual Assignment Orders issued under this Agreement. Assignment Orders will identify the Job Title, Department, Reporting Manager, Expected Start Date, and Fee Rate.

Assignment Details

Reporting Manager:    Expected Start Date:    Expected Duration:

Payment Terms: Client shall pay Supplier within days of receipt of an undisputed invoice. Invoices shall itemize hours, rates, and Candidate name(s).

Candidate Information (to be provided by Supplier)

Phone:    Email:    Date of Birth:

Employment History

Education

References

Background Checks and Authorizations

Supplier represents that, prior to supply, it will obtain all necessary candidate consents for employment verification, reference checks, and criminal background screening required by applicable law. Supplier further represents that records of such consents will be retained and made available to Client on request.

Client authorizes Supplier to conduct or procure background investigations for Candidates assigned under this Agreement. Client acknowledges that Supplier will rely on Candidate-provided information and that Supplier does not guarantee outcomes of third-party checks.

Candidate Authorization Obtained: (check if Supplier has obtained written authorization from Candidate)

Warranties, Representations, and Covenants

Supplier warrants that each Candidate supplied possesses the qualifications, experience, and legal right to work in the jurisdiction of assignment, and that Supplier has disclosed any material information that would reasonably affect Client's decision to engage the Candidate. Supplier further warrants that it will comply with all applicable employment, payroll tax, and benefits obligations for Candidates it employs.

Client represents that it will supply a safe work environment and will comply with applicable employment laws when supervising assigned Candidates. Client agrees not to reclassify, misreport, or otherwise treat Candidates as independent contractors where law requires otherwise.

Confidentiality and Data Protection

Each party shall maintain in confidence any confidential or personal data received from the other, and shall process such data only for performance of this Agreement and in compliance with applicable privacy and data protection laws. Supplier shall implement reasonable administrative and technical safeguards to protect Candidate personal information.

Indemnity and Insurance

Each party shall indemnify and hold harmless the other against claims arising from its own negligent acts, willful misconduct, or breach of this Agreement. Supplier shall maintain commercial general liability and, where applicable, workers' compensation insurance in amounts sufficient to meet statutory requirements and customary industry standards. Insurance limits and carriers:

Non-Solicitation and Placement Fees

Client agrees not to solicit or hire, directly or indirectly, any Candidate supplied by Supplier during the assignment and for a period of thereafter without payment of the agreed placement fee. Placement fee shall be:

Term and Termination

This Agreement shall commence on the Effective Date and continue until terminated by either party upon prior written notice, subject to obligations for payment of fees for services rendered through the effective termination date. Immediate termination is permitted for material breach, insolvency, or violation of law.

Limitation of Liability

Except for willful misconduct or gross negligence, neither party shall be liable to the other for consequential, incidental, punitive, or special damages. The aggregate liability of either party for claims arising under this Agreement shall be limited to the greater of (a) fees paid by Client to Supplier in the preceding six months, or (b) $10,000.

Governing Law and Dispute Resolution

This Agreement shall be governed by the laws of the state of without regard to conflict of law principles. The parties will attempt in good faith to resolve disputes promptly by negotiation. If unresolved, disputes shall be resolved by binding arbitration in the county of the Client's principal place of business.

Notices

Legal Disclosures & Applicant Certification

At-Will Employment: Unless otherwise agreed in writing in an individual employment contract between Candidate and Client, Candidate's engagement shall be at-will and may be terminated by either party in accordance with applicable law.

Equal Opportunity: Supplier and Client are equal opportunity organizations and shall not discriminate in sourcing, hiring, or assignment on prohibited bases.

Applicant Certification: Supplier certifies that the Candidate information provided to Client is true, accurate, and complete to Supplier's knowledge. Supplier further certifies that it has obtained Candidate consent to share such information with Client for the purposes of placement and related background checks.

Supplier Certification: (check to confirm Supplier certifies the above)

Authorization to Contact Previous Employers: Supplier confirms it has obtained or will obtain Candidate authorization to contact prior employers and references. Client also authorizes Supplier to obtain verifications and to share results with Client as necessary for placement decisions.

Background Check Authorization by Client: (check if Client authorizes Supplier to initiate background checks)

Miscellaneous

Amendments must be in writing and signed by authorized representatives of both parties. If any provision of this Agreement is held unenforceable, the remainder shall continue in full force and effect. This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein and supersedes prior understandings.

Execution

The individuals signing below represent and warrant that they are authorized to execute this Agreement on behalf of their respective parties.

Supplier (Agency) — Printed Name:

By (Signature):

Date:

Client (Hiring Company) — Printed Name:

By (Signature):

Date:

Enter text✕

What an Employment Supply Agreement Covers

An Employment Supply Agreement is a written contract used when a staffing supplier places employees, temporary workers, or contractors with a client for specific services, term, and location. It sets each party's obligations for pay, invoicing, taxes, insurance, supervision, confidentiality, and termination. The document clarifies worker classification, assigns responsibility for payroll and benefits, and defines procedures for background checks, indemnity, and dispute resolution to reduce operational and legal uncertainty.

Why use a formal Employment Supply Agreement

Use a formal Employment Supply Agreement to define scope, payment terms, liability allocation, and compliance duties so parties operate from a clear, enforceable baseline.

Why use a formal Employment Supply Agreement

Who typically completes and relies on this agreement

This agreement is commonly used by staffing agencies, host employers, and HR or procurement teams coordinating temporary or pooled labor.

  • Staffing agencies managing client assignments and billing, ensuring legal responsibility and rate schedules.
  • Host employers onboarding temporary workers, controlling day-to-day supervision, and assigning workplace duties.
  • In-house HR or procurement teams negotiating terms, insurance requirements, and compliance obligations.

Use tailored templates and legal review when parties operate in multiple states or when worker classification is uncertain.

Core sections to include in a professional Employment Supply Agreement

A complete agreement lays out parties, scope, compensation, liability, termination, and compliance obligations so expectations and legal risk are clear for both supplier and host.

Parties

Identify supplier, client, and any subcontractors with full legal names, addresses, and contact points. Specify which entity pays wages, issues tax forms, and handles benefits to avoid later disputes.

Scope

Define job duties, required qualifications, work location, schedule, and performance standards. Attach exhibits for detailed project scope, milestones, or shift schedules to ensure clarity.

Compensation

State billing rates, overtime rules, invoicing frequency, payment terms, reimbursable expenses, and any markups or discounts, and tax withholding responsibilities.

Liability

Allocate responsibility for workplace injury, indemnities, insurance minimums, and limits on consequential damages. Include certificate of insurance requirements and claims reimbursement.

Termination

Specify notice periods, termination for cause or convenience, cure windows, final invoicing procedures, and post-termination obligations such as return of property and final accounting.

Compliance

Require adherence to applicable laws (wage and hour, tax, immigration), background checks, drug testing if appropriate, confidentiality, and data protection consistent with HIPAA or other industry rules.

Step-by-step: completing and executing the agreement

Follow these steps to complete and execute an Employment Supply Agreement correctly, minimizing legal and operational issues.

  • 01
    Prepare documents: Gather IDs, tax forms, insurance certificates, and prior agreements.
  • 02
    Enter party details: Fill legal names, addresses, and contact points.
  • 03
    Set terms: Define rates, term, notice periods, and insurance.
  • 04
    Sign and distribute: Execute signatures, retain originals, and share copies.

Configuring an online completion and signing workflow

Configure an e-sign workflow to collect signatures, attach supporting documents, and automate reminders and invoice delivery.

Field Configuration
Authentication Email link with optional SMS code verification.
Templates Create reusable templates with conditional fields.
Attachments Require certificates, W-9s, or IDs as uploads.
Reminders Set automated reminders and expiry notifications.
Delivery Send signed copies to all parties and archives.

Platform requirements for secure eSubmission and records

Use an eSignature platform that supports audit trails, secure storage, and standards compliance such as ESIGN, UETA, and 21 CFR Part 11 where applicable.

  • File formats: PDF, DOCX, and editable formats.
  • Integrations: Connectors for Salesforce, NetSuite, and Google Workspace.
  • Authentication: Email, SMS, and advanced 2FA options.

Where completed agreements should be filed and who receives copies

Route completed Employment Supply Agreements to the supplier, client legal department, and HR for recordkeeping and to payroll for processing.

  • Supplier copy: Supplier retains signed original for billing and compliance.
  • Client copy: Client HR keeps records and assigns worker supervision.
  • Legal review: Send final executed agreement to legal counsel for audit trail.
  • Payroll: Provide payroll team with rate sheets and worker IDs.

Key timelines and processing expectations

Key timing points cover effective dates, notice periods, billing cycles, onboarding deadlines, and required retention for compliance.

Effective date:

Date entered in agreement starts obligations.

Notice periods:

As specified, typically 30–90 days for termination.

Invoicing cycle:

Monthly or per milestone with 30-day payment terms.

Onboarding deadline:

Provide staff and documentation before first shift.

Processing time:

Allow 3–10 business days for review and bookkeeping.

Common mistakes to avoid when preparing the agreement

  • Using vague compensation language such as 'market rate' without exact numbers leads to disputes and complicates tax treatment and invoicing reconciliation.
  • Failing to specify whether the supplier or client controls workplace supervision increases misclassification risk and potential wage-and-hour exposure.
  • Not attaching insurance certificates, limits, and indemnity language can leave parties exposed to uncovered claims and unexpected litigation costs.
  • Neglecting to obtain signed acknowledgements for background checks or credentialing creates compliance gaps, especially in healthcare and education placements.

Penalties and legal risks from incorrect or incomplete agreements

Tax penalties: Backup withholding and IRC §6721 penalties.
I-9 violations: Civil fines under 8 CFR §274a.2.
Misclassification: Wage claims and tax liabilities.
Insurance gaps: Uninsured claims jeopardize coverage.
Contract disputes: Litigation costs and injunctive relief.
Data breach: HIPAA, state privacy penalties.

Security and compliance features to require from eSignature providers

In transit: Encrypts data in transit using TLS 1.2/1.3.
At rest: AES-256 encryption for stored data.
Certifications: SOC 2 Type II and ISO 27001 certified.
Regulatory: ESIGN and UETA compliant.
Healthcare: HIPAA support with BAA available.
Audit trail: Detailed logs: timestamps, IPs, actions.

Practical examples showing how agreements are used

Real-world examples show how Employment Supply Agreements resolve liability, payment, and compliance in staffing arrangements.

Optica Ventures

Optica Ventures standardized supplier contracts across projects to reduce onboarding time and clarify insurance and payment terms.

  • They automated signatures and document routing for suppliers.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers." The streamlined process reduced manual follow-ups and improved completion times.

Martin Properties

Martin Properties used Employment Supply Agreements for temporary leasing and maintenance staffing across multiple properties.

  • Mobile signing supported technicians on site.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Pricing snapshot for common eSignature providers used with these agreements

Compare core pricing and capabilities for eSignature providers commonly used to execute and manage Employment Supply Agreements.

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 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

Frequently asked questions about Employment Supply Agreements

Answers to frequent questions about completing, signing, and defending Employment Supply Agreements in commercial and staffing contexts.


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