Standard Priority Search Fee Agreement
Here is our standard engagement fee agreement we use with clients:
Management Recruiters of Harleysville, Inc. (hereafter referred to as MR) is hereby authorized to conduct a search for qualified candidates to fill the position of [POSITION NAME] under the following terms and conditions:
In the event that [COMPANY NAME] (hereafter referred to as CLIENT) retains the services of an individual presented by MR, the CLIENT will pay to MR a TOTAL SERVICE CHARGE OF THIRTY PERCENT (30%) OF THE FIRST YEAR COMPENSATION TO BE EARNED BY THE CANDIDATE. (The total service charge is based on the estimated compensation for the position earned by the candidate in the first year of employment. For positions paying commissions, bonuses, or other incentives, as well as salary, the charge is based on a reasonable estimate of the first year's compensation. In arriving at this estimate the candidate's current market worth will weigh heavily as a guide. This estimate is not subject to reduction or increase after the candidate has been employed.
With the execution of this agreement, CLIENT will pay MR an ENGAGEMENT FEE of $5,000.00.
The BALANCE is due and payable within ten (10) days of the candidates start date. This BALANCE will reflect adjustments to the estimated TOTAL SERVICE CHARGE if actual earnings are to be higher or lower than the original estimate when the search began. The engagement fee will also be deducted from the final fee.
If MR fails to present a candidate who is hired for the position or at least two qualified candidates within forty five (45) days from the date hereof, MR shall refund to the CLIENT the Full Engagement Fee.
If at least two candidates presented within that forty five (45) day period are interviewed by CLIENT, but CLIENT fills position through its own efforts, THERE WILL BE NO REFUND.
If MR presents at least two qualified candidates within the forty five (45) day period but CLIENT refuses to interview said candidates within the forty five (45) day period, NO PORTION OF THE ENGAGEMENT FEE SHALL BE REFUNDED TO THE CLIENT.
CLIENT shall reimburse candidates for all reasonable interviewing expenses incurred by any candidate who resides outside of a 50 mile radius of the location where the interview is to be conducted, including but not limited to transportation, food, and lodging.
CLIENT shall reimburse MR on a monthly basis, for all pre-approved, reasonable out-of-pocket expenses incurred by MR in a discharge of its search obligations including but not limited to transportation, food and entertainment, and lodging for out-of-town interviews by MR of potential candidates, subject to client approval.
MR warrants that should the candidate terminate employment with the CLIENT for any reason within thirty (30) days from the date the candidate begins employment, MR shall present two additional qualified candidates within a successive ninety (90) day period. CLIENT is responsible for expenses only in such an event.
The CLIENT may cancel this agreement at any time but in such an event shall not be entitled to a refund of the ENGAGEMENT FEE and in the event a candidate already presented in the course of this search is hired, the balance of the TOTAL SERVICE CHARGE will be due and payable when said candidate begins work.
MR does not discriminate in the acceptance or referral of candidates on the basis of race, color, religion, sex, age, national origin, marital status, disability, or other protected characteristics.
The undersigned agree to all provisions contained in this Agreement.
| MR of Harleysville, Inc. |
Client Company |
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Date:____________________________ |
:____________________________
Date:____________________________ |
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