Direct Placement Agreement Template for England and Wales

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Key Requirements PROMPT example:

Direct Placement Agreement

"I need a Direct Placement Agreement for my tech recruitment agency based in London, focusing on permanent placements in the software development sector with a standard 12-week rebate period and including specific provisions for remote workers."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Clauses
Industries

Employment Agencies Act 1973: Core legislation governing recruitment activities and defining obligations of employment agencies and employment businesses in England and Wales

Conduct of Employment Agencies and Employment Businesses Regulations 2003: Detailed regulations covering recruitment practices, requirements for terms of business, and obligations regarding candidate suitability checks

Data Protection Act 2018 and UK GDPR: Legislation governing the handling of candidate personal data, privacy requirements, and data sharing provisions

Equality Act 2010: Legislation ensuring non-discrimination requirements, equal opportunity provisions, and fair recruitment practices

Contract Law Fundamentals: Common law principles of contract formation, including Misrepresentation Act 1967 and Unfair Contract Terms Act 1977

Modern Slavery Act 2015: Legislation covering due diligence requirements and anti-trafficking provisions in recruitment and employment

Immigration, Asylum and Nationality Act 2006: Legislation governing right to work checks and immigration compliance requirements

Agency Workers Regulations 2010: Regulations protecting agency workers' rights and determining employment conditions for temporary workers

Industry-specific regulations: Sector-specific regulations that may apply depending on the industry (e.g., financial services, healthcare)

Professional body requirements: Specific requirements and regulations set by professional bodies relevant to the particular profession or industry

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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