Sample 4 - Permanent

______________________ and ________________________ are both licensed class A Employment Agencies. Both agencies agree to a "Strategic Alliance" to work co-operatively in placing candidates at each other's clients. The intent is for both agencies to:

a) Increase their overall revenues via co-operative efforts.

b) Increase client satisfaction with their performance, professionalism, and capacity to supply their needs.

c) Increase candidate satisfaction with their professionalism and greater supply of potential jobs.

d) Respect the confidentiality of information obtained from the other agency, and use it only for mutual benefit.

e) Work openly and honestly with each other, in the same fashion as if they were one agency while maintaining autonomy and the ability to have independent agreements with other companies.

Definitions:

  • Agency "A": Either ______ or ______.
  • Agency "B": The "other" agency. Ex. _____ when Agency "A" is _______, and _____ when Agency "A" is _____.
  • Agencies: Both _____ and _____.
  • Candidate: A person that is represented by either _____ or _____.
  • Client: A company that _____ or _____ is actively dealing with. Note that a client may have divisions or hiring authorities that act independently of each other, in which case they may be considered as separate clients.

Client Protection:

Agencies agree that clients are valuable resources and agree not to use the information obtained from each other to develop the client for themselves. Agency "A" will not solicit business from a client that Agency "B" is actively working with and sharing the client's open positions with Agency "A".

In the event that a client of Agency "A" contacts Agency "B" to set up a direct working relationship as a result of Agency "B" having done work for the client through Agency "A", Agency "B" will direct the client back to Agency "A".

In the event that a hiring authority at a client of Agency "A" moves to a client of Agency "B" where the Agency "B" client is one that has been presented to Agency "A" for co-operative work, Agency "A" will not solicit the business of Agency "B"s client. However if the hiring authority solicits the business of Agency "A", then Agency "A" may work with the client directly on subsequent positions that have not already been identified to Agency "A". A courtesy call to Agency "B" by Agency "A" would be required to inform them of the circumstances and change in conditions.

Agencies will be open and honest with their clients regarding the nature of the relationship between _____ and _____.

Agencies will abide by the terms in "Client Protection" during the term of this agreement and for a period of 12 months following the termination of this agreement.

Candidate Protection:

Agencies agree that candidates are a valuable resource and agree not to use the information provided by each other on the candidate to solicit the candidate for themselves for a period of 12 months after the representation of a candidate to them by the other agency.

Agencies will be open and honest with candidates regarding the nature of the relationship between each other.

In the event that a candidate that Agency "A" has represented to Agency "B" for consideration at one of Agency "B"s clients is referred to Agency "B" by a source unrelated to activities between Agencies, then Agency "B" may represent the candidate directly. A courtesy call to Agency "A" would be required to inform them of the circumstances and the change of conditions. Example: Agency "A" presents John Doe to Agency "B" for consideration at one of Agency "B"s clients. John gives the name of his references to Agency "B". John does not get the position at Agency "B"s client. 4 months later the reference refers John to Agency "B" for consideration at a different client. If Agency "B" is interested in representing John to their client, they shall do so through Agency "A" since the referral came as a result of work done with Agency "A". If the referral source 4 months later was totally independent of work conducted between Agencies, then Agency "B" may represent John directly and would call Agency "A" to inform them of the situation.

Agency "A" will split referrals they receive from candidates represented to them by Agency "B" with Agency "B" when the candidate representation took place within the last 12 months. The split will be 50% of the candidate portion of the fee to each agency.

Agency "A" will not actively solicit referrals from candidates represented to them by Agency "B" except if the question naturally arises during the placement process of attempting to place said candidate. If Agency "B" feels said candidate might be a source of referrals for other roles they are to request Agency "A" calls the candidate for the referral.

Agencies will abide by the terms in "Candidate Protection" during the term of this agreement and for 12 months following the termination of this agreement.

Guarantees:

Permanent Placements:

Both agencies have a standard 3 month 100% credit replacement guarantee for permanent placements with their clients. The intent of the guarantee is to replace the vacated position in the event that a candidate they place at a client site leaves for any reason. In the event that the agency is unable to replace the same position, then the credit is to be applied to the next placement they make with that client.

The agency that deals with the client is responsible for any guarantees offered to the client.

Guarantees between Agencies will be a credit equal in value to the money received for the placement. It will not be specific to the position nor to the client. Duration of the guarantee between Agencies will be the same as for the duration offered the client. Non standard guarantees should be identified to the other agency as soon as possible.

Example: Agency "A" places a candidate at Agency "B"s client where the guarantee is a non standard 1 month 100%, 2 months 50%, and 3 months 25% credit replacement guarantee. The fee was $10,000.00, split $5,000.00 to each agency. In the 3rd month the candidate quits and the guarantee in invoked. Agency "B" gives a $5000.00 credit to the client to be applied towards the replacement of the position vacated. In the event Agency "B" is unable to replace the candidate, the credit is to be applied to the next placement Agency "B" makes with the client. Agency "A" gives Agency "B" a credit for $2,500.00 to be applied towards the next placement that Agency "A" makes with Agency "B".

Payment Terms:

Agencies pay each other fees based upon fees collected from clients only, not on fees unsuccessfully collected.

Permanent Placements:

The standard fee is 25% of the candidates starting salary. In the event of a non standard fee, Agencies will notify each other as soon as possible. Example: If Agency "A" negotiates a flat fee with a client, they will inform Agency "B" at the time of requesting their help on a position. Example: Agency "A"s client attempts to renegotiate the fee or guarantee at the time of extending an offer to Agency "B"s candidate. Both Agencies would have veto power over accepting the renegotiated offer.

Fees will be split 50/50 between Agencies.

Agencies will pay each other within two business days of receipt of payment from the client.

Liabilities:

Agencies are responsible for liabilities proportional to their return.

In the event of litigation on behalf of Agencies, costs will be shared proportional to the expected gain. Both Agencies have the right to waive participation, foregoing both costs and rewards.

In the event of litigation filed against Agencies, costs will be shared proportional to their return. Either agency has the option of settling at any point and paying their portion of the settlement. If they do not want to settle at the same time as the other agency, they are not responsible for further costs nor do they benefit from further gain from pursuing defence of the suit.

The agency dealing with a client has veto power over suing a client for permanent placement fees.

Principles for conflict resolution between Agencies:

Agencies acknowledge that it is impossible to document every situation that might occur in the placement business. The following are some principles to be applied in the event that a situation occurs that is previously undefined.

A) The client comes first. All actions between Agencies must not impact negatively upon the client.

B) The candidate comes next. Actions between Agencies should not negatively impact upon a candidate.

C) Open communication. Identify the issue to each other as soon as it arises to achieve a common understanding of the process that should take place.

D) Fairness. Those that contribute to a placement should reap the rewards proportional to the contribution.

E) Long term focus. It is better to ensure client satisfaction and inter agency satisfaction by coming up with a solution that is fair to all parties than to win a situation and lose a relationship.

 

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