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Placement Agency Agreement

Placement Agency Agreement Template for Malaysia

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Key Requirements PROMPT example:

Placement Agency Agreement

"I need a Placement Agency Agreement for my Malaysian tech company to engage a recruitment agency for hiring software developers across Southeast Asia, with specific provisions for cross-border recruitment and work permit assistance, to be effective from March 2025."

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Document background
The Placement Agency Agreement serves as a comprehensive legal framework for recruitment services in Malaysia, establishing the professional relationship between placement agencies and their client companies. This document is essential when companies seek to outsource their recruitment needs to professional agencies, ensuring compliance with Malaysian regulations including the Private Employment Agencies Act 1981, Employment Act 1955, and Personal Data Protection Act 2010. It outlines crucial elements such as service scope, fee structures, candidate replacement terms, confidentiality obligations, and compliance requirements. The agreement is particularly important in the Malaysian context where specific licensing and regulatory requirements apply to employment agencies, and where data protection and employment laws must be carefully considered in recruitment processes.
Suggested Sections

1. Parties: Identification of the placement agency and the client company, including registration numbers and registered addresses

2. Background: Context of the agreement and brief description of the parties' business activities

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Agency Obligations: Key responsibilities of the placement agency, including compliance with Malaysian employment laws

6. Client Obligations: Responsibilities of the client company, including provision of accurate job requirements

7. Fees and Payment Terms: Fee structure, payment schedule, and terms for placement services

8. Confidentiality: Provisions for handling confidential information and compliance with PDPA 2010

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

10. Warranties and Representations: Guarantees provided by both parties regarding their capacity and authority

11. Liability and Indemnification: Limitations of liability and indemnification obligations

12. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

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

Optional Sections

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

2. International Recruitment: Additional terms for international recruitment services - include when dealing with foreign worker placement

3. Background Screening Services: Terms for additional background check services - include when offering verification services

4. Exclusivity: Terms for exclusive recruitment rights - include when agency has exclusive rights for certain positions

5. Data Protection and PDPA Compliance: Detailed data protection terms - include as separate section when handling sensitive data or upon client request

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

7. Volume Discounts: Terms for reduced fees based on volume - include for large-scale recruitment projects

Suggested Schedules

1. Schedule 1 - Fee Structure: Detailed breakdown of fees for different positions and services

2. Schedule 2 - Service Specifications: Detailed description of recruitment process and methodology

3. Schedule 3 - Client Requirements: Specific requirements for positions to be filled and candidate criteria

4. Schedule 4 - Authorized Representatives: List of authorized contacts for both parties

5. Schedule 5 - Data Processing Terms: Detailed terms for handling personal data in compliance with PDPA

6. Appendix A - Standard Forms: Standard forms for job orders, candidate submissions, and feedback

7. Appendix B - Service Level Metrics: Detailed performance metrics and reporting requirements

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
Agency Services
Business Day
Candidate
Client
Commencement Date
Confidential Information
Employment Contract
Fees
Identity Card
Intellectual Property Rights
License
Notice
Personal Data
Placement
Placement Fee
Position
Qualifying Period
Recruitment Process
Replacement Candidate
Services
Service Level Standards
Successful Placement
Term
Territory
Working Permit
Background Check
Placement Period
Agency Personnel
Client Representative
Placement Confirmation
Shortlisted Candidate
Skills Assessment
Engagement Letter
Professional Standards
Clauses
Appointment
Scope of Services
Agency Obligations
Client Obligations
Fees and Payment
Confidentiality
Data Protection
Intellectual Property
Warranties
Indemnification
Limitation of Liability
Term
Termination
Force Majeure
Assignment
Notices
Governing Law
Dispute Resolution
Entire Agreement
Severability
Variation
Waiver
Relationship of Parties
Compliance with Laws
Non-Solicitation
Service Standards
Replacement Guarantee
Performance Metrics
Insurance
Record Keeping
Audit Rights
Anti-Corruption
Exclusivity
Conflicts of Interest
Relevant Industries

Human Resources Services

Professional Services

Technology

Manufacturing

Financial Services

Healthcare

Education

Retail

Construction

Hospitality

Telecommunications

Energy

Transportation

Real Estate

Professional Recruitment

Relevant Teams

Human Resources

Legal

Procurement

Compliance

Operations

Senior Management

Talent Acquisition

Finance

Administration

Relevant Roles

HR Director

Legal Counsel

Recruitment Manager

Talent Acquisition Manager

HR Manager

Compliance Officer

Operations Director

Managing Director

HR Business Partner

Procurement Manager

Contract Manager

Chief Human Resources Officer

Legal Manager

Business Development Manager

Industries
Private Employment Agencies Act 1981: The primary legislation governing employment agencies in Malaysia, requiring licensing and regulating the conduct of placement agencies
Employment Act 1955: Fundamental employment law in Malaysia that sets out basic terms and conditions of employment, relevant for understanding the scope of placement services
Personal Data Protection Act 2010: Regulates the collection, use, and handling of personal data of job seekers and clients by placement agencies
Contracts Act 1950: Governs the formation and enforcement of contracts in Malaysia, providing the legal framework for the agreement
Workers' Minimum Standards of Housing and Amenities Act 1990: Relevant if the placement agency deals with foreign workers or provides accommodation services
Employment Insurance System Act 2017: Provides insurance coverage for workers, relevant for understanding the scope of employment benefits
Industrial Relations Act 1967: Governs relationships between employers and employees, relevant for understanding placement terms and conditions
Immigration Act 1959/63: Essential if the agency deals with foreign worker placements or international recruitment
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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