Before talking about the functioning and procedure of writing an employment agency agreement, it is necessary to elaborate the employment agency. A firm that provides employees to the employers and vice versa is usually called as employment agency. In third world countries there is no or minimal concept of employment agencies. But in developed part of the world, employment agencies are prevalent throughout and their demand is increasing day by day due to increase in population. People from third world migrate in rich countries to find jobs and take help from such organizations in finding job. Such organizations also maintain online websites which are providing great deal of help to employment seekers. Some of these organizations are operating without fees and some charge fees to find a person any job. They maintain a huge database of people logging in the website and record their personal information regarding the skill sets, qualification and experience. And whenever any employer demands an employee of particular skill sets, it lists all the persons having similar qualities.
Contracting with such agencies is quite beneficial for employers who are always hunting for talented personnel. This not only reduces their time in searching for the right candidate but also makes this tedious process easier by just one click. Companies usually contract with more than one agency to reach out to larger number of candidates. Companies that enter into agreements with employment agencies have to keep in mind certain things while drafting and finalizing an agreement. All the requirements must be listed down to make sure that the agency’s software accurately sifts the candidates having matching skills. Otherwise all of the company’s money will go to waste. This practice also reduces the work load of human resource department. And hence the costs are cut down by the company. Which increases the profits as a result.
Here is preview of a Free Sample Employment Agency Agreement Template created using MS Word,
Drafting of any kind of agreement may it be related to business or any other kind of contract, its language should be formal and accurate in legal terms. Because this makes a huge difference in interpretation of the data contained in the agreement. Other important point is to have the agreement in written form rather than in verbal form. This practice reduces the chance of misinterpretation by either of the party. Also written agreement saves the candidates from falling a prey to false accusations and unnecessary trips to courts and police stations. In written agreement of employment agency, company looking for the employees must have a clear vision of what it wants.
There should be no ambiguity in the qualities that company is looking for in an employee. Because any misleading statement can ultimately result in huge loss. Grabbing the right talent can be a challenge for employer. Especially in this globalized world where opportunities are plentiful. The compensation that will be given to the agency must also be added in the agreement. And the mode of payment i.e monthly, weekly, hourly or on the basis of the candidates found etc should also be present in the employment agency agreement. Other terms can also be added to fit the needs of both the employer and the agency to make the agreement more flexible and customize-able.