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Direct Placement Agreement

Direct Placement Agreement Template for Germany

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Key Requirements PROMPT example:

Direct Placement Agreement

"I need a Direct Placement Agreement for our IT recruitment agency based in Munich, serving clients across Germany and Austria, with a focus on senior tech roles and including a 6-month replacement guarantee."

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Document background
The Direct Placement Agreement is essential for professional recruitment services in Germany, establishing a legally compliant framework for permanent placement services. It is typically used when a company seeks to engage a recruitment agency to identify and present candidates for permanent employment positions. The agreement must comply with German legal requirements, including the Civil Code (BGB), Personnel Leasing Act (AÜG), and data protection regulations (DSGVO). This document covers crucial elements such as fee structures, service scope, candidate introduction definitions, replacement guarantees, and confidentiality obligations. It's particularly important for companies without internal recruitment capabilities or those seeking specialized talent in competitive markets. The Direct Placement Agreement differs from temporary staffing arrangements by focusing solely on permanent placement services and includes specific provisions for success-based fees and candidate guarantee periods.
Suggested Sections

1. Parties: Identification of the contracting parties - 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

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

5. Exclusivity: Terms regarding whether the arrangement is exclusive or non-exclusive

6. Fee Structure: Placement fees, payment terms, and conditions for fee becoming due

7. Client Obligations: Client's responsibilities in the recruitment process

8. Agency Obligations: Agency's responsibilities and service standards

9. Candidate Introduction: Definition of what constitutes a candidate introduction and related terms

10. Data Protection: GDPR compliance and data handling procedures

11. Warranties and Representations: Guarantees provided by both parties

12. Liability and Indemnification: Limitation of liability and indemnification provisions

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

14. Confidentiality: Protection of confidential information

15. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, etc.

Optional Sections

1. Replacement Guarantee: Terms for replacing candidates who leave within a specified period - include when offering guarantee period

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

3. Volume Discounts: Structure for reduced fees based on multiple placements - include for larger clients with multiple hiring needs

4. Specific Industry Requirements: Additional terms for regulated industries - include when placing candidates in regulated sectors

5. Multiple Entity Provisions: Terms for serving multiple entities within client group - include for corporate group structures

6. Service Level Agreement: Specific performance metrics and standards - include when agreed with client

7. Background Check Requirements: Specific verification requirements - include when background checks are part of service

Suggested Schedules

1. Schedule 1 - Fee Structure: Detailed breakdown of fees, payment terms, and calculation methods

2. Schedule 2 - Services Description: Detailed description of recruitment services and processes

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

4. Schedule 4 - Required Candidate Information: Template for candidate information to be provided

5. Appendix A - Client Specifications: Client's specific requirements for candidates and positions

6. Appendix B - Reporting Templates: Standard formats for progress reports and candidate presentations

7. Appendix C - Key Contacts: List of key personnel and contact information for both parties

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Law
Business Day
Candidate
Candidate Introduction
Client
Client Group
Commencement Date
Confidential Information
Data Protection Laws
DSGVO
Employment Start Date
Exclusivity Period
Fee
Force Majeure Event
Gross Annual Remuneration
Guaranteed Period
Intellectual Property Rights
Introduction Date
Material Breach
Minimum Fee
Notice Period
Placement
Position
Professional Standards
Qualifying Placement
Recruitment Services
Replacement Candidate
Required Information
Services
Service Level Standards
Successful Placement
Term
Territory
Variable Compensation
Clauses
Interpretation
Appointment
Exclusivity
Service Provision
Client Obligations
Agency Obligations
Fees and Payment
Invoicing
Candidate Introduction
Successful Placement
Replacement Guarantee
Data Protection
Confidentiality
Intellectual Property
Non-Solicitation
Non-Competition
Warranties
Liability Limitation
Indemnification
Force Majeure
Term and Duration
Termination
Consequences of Termination
Insurance
Assignment and Subcontracting
Notices
Entire Agreement
Severability
Waiver
Variation
Third Party Rights
Governing Law
Jurisdiction
Dispute Resolution
Relevant Industries

Information Technology

Financial Services

Manufacturing

Healthcare

Professional Services

Retail

Telecommunications

Energy

Automotive

Pharmaceuticals

Construction

Education

Logistics

Media and Entertainment

Real Estate

Relevant Teams

Human Resources

Legal

Procurement

Talent Acquisition

Finance

Compliance

Operations

Risk Management

Corporate Development

Relevant Roles

Human Resources Director

Talent Acquisition Manager

Procurement Manager

Legal Counsel

HR Business Partner

Recruiting Manager

Chief Human Resources Officer

Operations Director

Finance Director

Compliance Officer

General Counsel

Head of Talent Acquisition

HR Operations Manager

Contracts Manager

Industries
Bürgerliches Gesetzbuch (BGB): German Civil Code - Contains fundamental contract law provisions, including formation, interpretation, and enforcement of contracts
Arbeitnehmerüberlassungsgesetz (AÜG): German Personnel Leasing Act - While primarily focused on temporary work, it contains relevant provisions for direct placement services
Sozialgesetzbuch III (SGB III): Social Code Book III - Contains regulations on job placement services and related activities
Datenschutz-Grundverordnung (DSGVO): General Data Protection Regulation (GDPR) - Regulates the processing of personal data in recruitment processes
Gesetz gegen den unlauteren Wettbewerb (UWG): Unfair Competition Act - Relevant for non-compete clauses and protection of business relationships
Allgemeines Gleichbehandlungsgesetz (AGG): General Equal Treatment Act - Ensures non-discrimination in recruitment and placement processes
Bundesgebührengesetz (BGebG): Federal Fees Act - May be relevant for structuring placement fees and payment terms
Handelsgesetzbuch (HGB): German Commercial Code - Relevant if either party is acting as a commercial entity
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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