template

Recruiter Contract (Consultancy Agreement via Personal Service Company)

by
Genie Team
Genie Team
Aug, 11 2022

When to use this template

  • If you are a Recruiter working through a personal service company (also known as a PSC), and you are providing services to another business, then you can use this fully customisable contract template.

  • This template includes the necessary clauses and terms to ensure that the contract is legally binding and sets out the services offered, your responsibilities, your client's rights, and other important legal matters.

  • This contract is drafted in a way which makes it clear that you are not an employee of the client company but working for them as a consultant or contractor.

  • Likewise, if you are a company who is looking to hire a Recruiter as a consultant or contractor to provide services to your company, you can use this template.

  • It sets out the terms and conditions under which the Recruiter will provide their services and defines the typical commercial terms such as payment, term and termination as well as the assignment of IP to the company and ensures the Recruiter is legally bound to work according to your specifications.

  • The agreement protects both parties by clearly defining the expectations and responsibilities of each, and can help avoid disputes down the road.

Key issues covered in this template

  • Non-Solicitation Clause

  • Consultancy fees based on candidate's remuneration

  • IP ownership assigned to the company

  • Duties surrounding confidential information

  • Liability and Insurance

  • Refunds offered if candidate’s employment is terminated early

  • Power of Attorney

  • Criminal and background checks of candidates

  • Invoice schedule based on when a candidate is hired

  • Payment in lieu of notice

  • Garden leave

What to watch out for

  • Companies defined as medium and large sized, as well as public authorities need to comply with IR35 to ensure the consultant should not be treated as an employee. For more information, see: https://www.gov.uk/guidance/understanding-off-payroll-working-ir35.

  • Carefully consider whether you want to include any post-termination restrictions in this agreement as these could increase the risk that an arrangement falls inside IR35.

  • By default, contractors own the IP of their work under UK law. However, this contract assigns the IP of their work to the company hiring them.

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Author

Genie Team

Genie Team

@genieteam
Genie AI Team

The Genie Team consists of lawyers and paralegals. Our aim is to open source the law and provide high quality, regularly reviewed legal documents.

Talent Forge
Civica
Webnyay
Optimum Staffing Solutions Inc.
International Hospitality Recruitment Ltd
TECHT LABS
B
T
E
E
B
P
+3 more
Consultancy
50%
Technology
25%
Legal Services
10%
Other
10%
Finance
5%

2 years ago

Genie

Genie Team

The consultancy fees were amended to reflect industry standards whereby the recruiter is paid based on a percentage of the hired candidate’s remuneration. A refund clause was added whereby a refund is offered if a candidate’s employment is terminated early. Among the list of services provided by the consultant is criminal and background checks of the candidates as part of the pre-screening service. The invoices schedule was amended to reflect the timeline of when a candidate is hired.

Additional information

Business categories

Business activities

Relevant sectors

Relevant company sizes

Governing law

England and Wales

Language

English UK

Gender neutral

Yes