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Terms for the Introduction Of Permanent Staff
1. Definitions
1.1. In these Terms of Business the following definitions apply:
Applicant means the person introduced by the Agency to the Client for an Engagement including any officer or employee of the Applicant if the Applicant is a limited company and members of the Agency’s own staff;
Client means the person, firm or corporate body together with any subsidiary or associated Company as defined by the Companies Act 1985 to which the Applicant is introduced;
Agency means HEC Resources of 5 Blackhorse Lane, Walthamstow, London E17 6DN
Engagement means the engagement, employment or use of the Applicant by the Client or any third party on a permanent or temporary basis, whether under a contract of service or for services, under an agency, licence, franchise or partnership agreement or arrangement, or any other engagement, directly or through a limited company of which the Applicant is an officer or employee;
Introduction means (i) the Client’s interview of an Applicant in person or by telephone, following the Client’s instruction to the Agency to search for an Applicant; or (ii) the passing to the Client of a curriculum vitae or information, verbally or in writing, which identifies the Applicant; and which leads to an Engagement of that Applicant;
Remuneration includes base salary or fees, guaranteed and/or anticipated bonus and commission earnings, allowances, inducement payments, the benefit of a company car and all other payments and taxable (and, where applicable, non-taxable) emoluments payable to or receivable by the Applicant for services rendered to or on behalf of the Client. Where the Client provides a company car, a notional amount of [specify] will be added to the salary in order to calculate the Agency’s fee.
1.2. Unless the context requires otherwise, references to the singular include the plural.
1.3. The headings contained in these Terms of Business are for convenience only and do not affect their interpretation.
1.4. The Agency will operate as an employment agency in relation to the Client. The Agency will have no authority to enter into a contract with an Applicant on behalf of the Client.
2. The Contract
2.1. These Terms constitute the contract between the Agency and the Client and are deemed to be accepted by the Client by virtue of an Introduction to, or the Engagement of an Applicant or the passing of any information about the Applicant to any third party following an Introduction.
2.2. These terms contain the entire agreement between the parties and unless otherwise agreed in writing by a duly authorised officer of the Agency, these Terms of Business prevail over any other terms of business or purchase conditions put forward by the Client.
2.3 No variation or alteration to these Terms shall be valid unless the details of such variation are agreed between the Agency and the Client and are set out in writing and a copy of the varied terms is given to the Client stating the date on or after which such varied terms shall apply.
3. Notification and Fees
3.1. The Client agrees:
a) To notify the Agency immediately of any offer of an Engagement which it makes to the Applicant;
b) To notify the Agency immediately that its offer of an Engagement to the Applicant has been accepted and to provide details of the Remuneration to the Agency; and
c) To pay the Agency’s fee within 14 days of the date of invoice.
3.2. Except in the circumstances set out in clause 5.1 below, no fee is incurred by the Client until the Applicant accepts the offer of the Engagement whether such an offer shall be conditional or not when the Agency will render an invoice to the Client for its fees.
3.3 The Agency is entitled to charge interest on invoiced amounts unpaid after the due date for payment at the rate of 2% per annum above the base rate (HSBC) from the due date until the date of payment (both before as well as after any judgment).
3.4 The fee payable to the Agency by the Client for an Introduction resulting in an Engagement is the amount equal to 20% of the Remuneration applicable during the first 12 months of the Engagement. VAT will be charged on the fee if applicable.
3.5 In the event that the Engagement is for a fixed term of less than 12 months, the fee in clause 3.4 will apply pro-rata. If the Engagement is extended beyond the initial fixed term or if the Client re-engages the Applicant within six calendar months from the date of termination of the first Engagement the Client shall be liable to pay a further fee based on the additional Remuneration applicable for the period of Engagement following the initial fixed term up to the termination of the second Engagement or the first anniversary of its commencement, whichever is the sooner.
3.6 In the case of each Applicant there is a minimum fee of £500.
4. Refunds
4.1. In order to qualify for the following refund, the Client must pay the Agency’s fee within 14 days of the date of invoice and must notify the Agency in writing of the termination of the Engagement within 7 days of its termination.
4.2. If the Engagement terminates before the expiry of 10 weeks from the commencement of the Engagement (except where the Applicant is made redundant) the fee will be refunded in accordance with the following scale of refund
Period of Engagement Percentage of Refund
1-2 weeks 75%
3-4 weeks 60%
5-8 weeks 40%
9-10 weeks 10%
4.3. If the Client re-engages the Applicant within six months from the date of termination of the first Engagement there shall be no entitlement to a refund and any refund paid or allowed by the Agency shall be repaid by the Client.
5. Introductions
5.1. Introductions of Applicants are confidential. The disclosure by the Client to a third party of any details regarding an Applicant introduced by the Agency which results in an Engagement with that third party within 6 months of the Introduction renders the Client liable to payment of the Agency’s fee as set out in clause 3.4 with no entitlement to any refund.
5.2. An introduction fee calculated in accordance with clause 3.4 will be charged in relation to any Applicant engaged as a consequence of or resulting from an introduction by or through the Agency, whether direct or indirect, within 6 months from the date of the Agency’s Introduction.
5.3. Where the amount of the actual Remuneration is not known the Agency will charge a fee calculated in accordance with clause 3.4 on the minimum level of remuneration applicable for the position in which the Applicant has been engaged with regard to any information supplied to the Agency by the Client and/or comparable positions in the market generally for such positions.
5.4. In the event that any employee of the Agency with whom the Client has had personal dealings accepts an Engagement with the Client within 3 months of leaving the Agency’s employment, the Client shall be liable to pay an introduction fee to the Agency in accordance with clause 3.4.
5.5. Details regarding an Applicant will be deemed to have been passed on, and an introduction fee payable by the Client in consequence, if an Applicant is engaged by a person connected with the Client within twelve months of any information concerning that Applicant being supplied to the Client by the Agency. The phrase “connected with” has the meaning set out in regulation 3 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
6. Sutability and References
6.1. The Agency endeavours to ensure the suitability of any Applicant introduced to the Client by obtaining confirmation of the Applicant’s identity; that the Applicant has the experience, training, qualifications and any authorisation which the Client considers necessary or which may be required by law or by any professional body; and that the Applicant is willing to work to work in the position which the Client seeks to fill.
6.2. The Client shall satisfy itself as to the suitability of the Applicant and the Client shall take up any references provided by the Applicant to it or the Agency before engaging such Applicant. The Client is responsible for obtaining work permits and/or such other permission to work as may be required, for the arrangement of medical examinations and/or investigations into the medical history of any Applicant, and satisfying any medical and other requirements, qualifications or permission required by law of the country in which the Applicant is engaged to work.
6.3. If the position which the Client seeks to fill is one for which the Applicant is required by law or by any professional body to have any qualifications or authorisation to work, or is one which involves working with or caring for or attending a person or persons under age 18 or caring for or attending person who by reason of age, infirmity or other circumstances is in need of care and attention, the Agency will obtain copies of any relevant qualifications or authorisations of an Applicant and two references in relation to the Applicant and provide copies to the Client.
7. Details of the Client
7.1 Prior to the Agency providing any details of an Applicant to the Client, the Client must notify to the Agency in writing:
(a) the Client’s identity; and
(b) the date on which the Client requires an Applicant to commence work and the duration or likely duration of the work;
© the nature of the Client’s business;
(d) the title of the position which the Client seeks to fill, including the type of work the Applicant would be required to do, the location at which and the hours during which he would be required to work;
(e) any risks to health and safety known to the Client and the steps the Client has taken to prevent or control such risks;
(f) the experience, training, qualifications and any authorisation which the Client considers are necessary, or which are required by law, or by any professional body, for an Applicant for the position which the Client seeks to fill;
(g) any expenses payable to the Applicant;
(h) the minimum rate of remuneration and any other benefits which the Client is offering for the position to be filled, and the intervals at which remuneration will be paid;
(i) the length of notice which a person filling the position would be required to give and entitled to receive to terminate employment with the Client;
(j) whether the position to be filled involves working with or caring for or attending any person under age 18; and
(k) whether the position to be filled involves caring for or attending any person in need of care and attention by reason of age, infirmity or other circumstances.
7.2 The Client authorises the Agency to advertise the availability of the position or positions which the Client engages the Agency to seek to fill.
8. Liability
The Agency shall not be liable under any circumstances for any loss, expense, damage, delay, costs or compensation (whether direct, indirect or consequential) which may be suffered or incurred by the Client arising from or in any way connected with the Agency seeking an Applicant for the Client or from the Introduction to or Engagement of any Applicant by the Client or from the failure of the Agency to introduce any Applicant. For the avoidance of doubt, the Agency does not exclude liability for death or personal injury arising from its own negligence.