Placement Fee Agreement Template for United Arab Emirates

The Placement Fee Agreement is essential for organizations operating in the UAE that engage recruitment agencies for their hiring needs. This document establishes the commercial and legal framework for recruitment services, ensuring compliance with UAE Federal Labor Law and MOHRE regulations. It is typically used when a company needs to formalize its relationship with a recruitment agency, defining the scope of services, fee structures, and mutual obligations. The agreement includes crucial elements such as placement guarantees, payment terms, and compliance requirements specific to UAE recruitment practices. It serves as a vital tool for protecting both parties' interests while maintaining transparency in recruitment processes and fee arrangements.

1. Parties: Identification of the recruitment agency and the client company, including full legal names, addresses, and registration details

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

3. Definitions: Key terms used throughout the agreement, including 'Candidate', 'Placement', 'Successful Placement', 'Fee', etc.

4. Scope of Services: Detailed description of recruitment services to be provided, including search, screening, and candidate presentation processes

5. Agency Obligations: Specific responsibilities of the recruitment agency, including compliance with UAE labor laws and recruitment regulations

6. Client Obligations: Client's responsibilities in the recruitment process, including providing accurate job descriptions and timely feedback

7. Fee Structure: Details of placement fees, calculation methods, and payment terms in compliance with UAE regulations

8. Payment Terms: Specific terms for invoicing, payment timeframes, and consequences of late payment

9. Warranties and Representations: Guarantees from both parties regarding their authority, capabilities, and compliance with UAE laws

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Confidentiality: Obligations regarding confidential information shared during the recruitment process

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution