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Placement Fee Agreement Template for Germany

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Key Requirements PROMPT example:

Placement Fee Agreement

"I need a Placement Fee Agreement for my tech startup based in Berlin, with a focus on contingency-based recruitment for software developers, including a 3-month replacement guarantee and a sliding scale fee structure starting from March 2025."

Document background
A Placement Fee Agreement is essential when engaging professional recruitment services in Germany. This document is typically used when a company decides to partner with a recruitment agency to fulfill their hiring needs. The agreement, governed by German law, establishes the commercial relationship between the parties, detailing the recruitment process, fee structures, and mutual obligations. It ensures compliance with German recruitment regulations, data protection laws, and commercial codes while providing clarity on payment terms and service expectations. The document is crucial for protecting both parties' interests and preventing potential disputes over candidate introductions, successful placements, and fee obligations.
Suggested Sections

1. Parties: Identification and details of the recruitment agency and the client company

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement including 'Candidate', 'Placement', 'Introduction', 'Engagement'

4. Scope of Services: Detailed description of recruitment services to be provided by the agency

5. Agency Obligations: Specific responsibilities of the recruitment agency including screening, introduction processes, and compliance with regulations

6. Client Obligations: Client's responsibilities including providing accurate job descriptions, timely information, and cooperation

7. Fee Structure: Calculation method for placement fees, including percentage rates and minimum fees

8. Payment Terms: Invoice timing, payment deadlines, and consequences of late payment

9. Data Protection: GDPR compliance measures and data handling procedures

10. Confidentiality: Protection of confidential information exchanged during the recruitment process

11. Term and Termination: Duration of agreement and circumstances for termination

12. Governing Law and Jurisdiction: Specification of German law application and jurisdiction

Optional Sections

1. Replacement Guarantee: Terms for candidate replacement if placement fails within a specified period - include when offering guarantee periods

2. Volume Discounts: Fee reduction structure for multiple placements - include for larger clients with regular hiring needs

3. International Placements: Additional terms for cross-border recruitment - include when offering international recruitment services

4. Specific Industry Requirements: Additional terms for regulated industries - include for financial services, healthcare, etc.

5. Success Fee Structure: Alternative fee arrangements based on performance - include when offering contingency or retained search options

6. Non-Circumvention: Prevention of direct hiring of introduced candidates - include when there's significant risk of bypassing

7. Force Majeure: Provisions for unforeseen circumstances - include when requested by client or in uncertain market conditions

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, including different position levels and specialties

2. Schedule 2 - Service Level Agreement: Specific performance metrics and service standards

3. Schedule 3 - Data Processing Agreement: Detailed GDPR-compliant data processing terms

4. Schedule 4 - Approved Client Locations: List of client offices/locations covered by the agreement

5. Appendix A - Required Candidate Information: Template for standard candidate information to be provided

6. Appendix B - Placement Confirmation Form: Standard form for confirming successful placements and triggering fees

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























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Relevant Industries

Technology

Financial Services

Manufacturing

Healthcare

Professional Services

Retail

Education

Construction

Energy

Telecommunications

Automotive

Logistics

Media

Real Estate

Pharmaceutical

Relevant Teams

Human Resources

Legal

Procurement

Finance

Operations

Executive Leadership

Talent Acquisition

Compliance

Relevant Roles

Human Resources Director

Talent Acquisition Manager

Recruitment Manager

HR Business Partner

Chief Human Resources Officer

Legal Counsel

Procurement Manager

Finance Director

Operations Director

Managing Director

Chief Executive Officer

Head of Human Resources

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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