Direct Placement Agreement

Direct Placement Agreement for the United Kingdom

Direct Placement Agreement Template for England and Wales

A Direct Placement Agreement is a legally binding contract under English and Welsh law that establishes the terms and conditions between a recruitment agency and a client company for permanent placement services. The agreement outlines the scope of recruitment services, fee structures, payment terms, and respective obligations of both parties. It includes provisions for candidate introductions, placement guarantees, and compliance with relevant employment and data protection legislation.

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What is a Direct Placement Agreement?

The Direct Placement Agreement serves as the foundational document for permanent recruitment services in England and Wales. It is used when a client company engages a recruitment agency to source and place permanent employees. The agreement defines the commercial relationship, establishes clear fee structures, and outlines the responsibilities of both parties. It incorporates essential compliance elements including GDPR requirements, equality legislation, and recruitment industry regulations. This document is crucial for protecting both parties' interests and ensuring transparent recruitment processes.

What sections should be included in a Direct Placement Agreement?

1. Parties: Details of the recruitment agency and the client company

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Services: Scope of recruitment services to be provided

5. Fees and Payment Terms: Fee structure, payment schedule, and conditions

6. Client Obligations: Responsibilities and commitments of the client

7. Agency Obligations: Responsibilities and commitments of the recruitment agency

8. Term and Termination: Duration of agreement and termination provisions

What sections are optional to include in a Direct Placement Agreement?

1. Rebate Provisions: Terms for refunds if placement unsuccessful - include when offering rebate periods

2. Replacement Candidates: Terms for providing replacement candidates - include when offering replacement guarantees

3. Off-Limits Agreement: Restrictions on recruiting from client's existing workforce - include when client requires non-poaching provisions

What schedules should be included in a Direct Placement Agreement?

1. Schedule 1: Fee Structure: Detailed breakdown of fees and calculation methods

2. Schedule 2: Services Description: Detailed scope of recruitment services

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

4. Appendix A: Standard Terms and Conditions: General terms applying to all placements

Authors

Alex Denne

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