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The Placement Agency Agreement serves as the foundational document for establishing a formal business relationship between professional recruitment agencies and companies seeking staffing solutions in the Philippines. This agreement is essential for companies operating under Philippine jurisdiction who need external expertise in talent acquisition and wish to outsource their recruitment processes. The document ensures compliance with Philippine labor laws, particularly DOLE Department Order No. 174-17 and related regulations governing recruitment practices. It outlines critical aspects such as service scope, fee structures, warranties, and compliance requirements while protecting both parties' interests. Companies typically utilize this agreement when they require ongoing recruitment support, need specialized talent acquisition services, or want to establish a preferred vendor relationship with a placement agency.

1. Parties: Identification of the placement agency and the client company, including their complete legal names, registration details, and addresses

2. Background: Context of the agreement, including the agency's authority to operate under Philippine law and the client's need for recruitment services

3. Definitions: Key terms used throughout the agreement, including 'Candidates', 'Placement Services', 'Successful Placement', and 'Fees'

4. Scope of Services: Detailed description of recruitment and placement services provided by the agency

5. Agency Obligations: Agency's responsibilities including candidate screening, compliance with labor laws, and maintaining necessary licenses

6. Client Obligations: Client's responsibilities including providing accurate job descriptions, timely feedback, and maintaining appropriate working conditions

7. Fees and Payment Terms: Structure of placement fees, payment schedule, and related financial terms

8. Warranties and Representations: Guarantees regarding agency licenses, compliance with laws, and ethical recruitment practices

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

10. Data Privacy and Protection: Compliance with the Data Privacy Act and handling of personal information

11. Term and Termination: Duration of the agreement and conditions for termination

12. Limitation of Liability: Scope and limits of agency's liability for candidate placement

13. Governing Law: Specification of Philippine law as governing law and jurisdiction

14. General Provisions: Standard clauses including notices, amendments, and severability