Recruiter fee agreement template
This is a plain-language fee agreement between a recruiter and a client company for contingent placement. Copy it, replace every [placeholder], and have a licensed attorney in your state review it before use. US view, 30 October 2026. It is a starting template, not legal advice.
How to use it
- Fill in every [bracket]. Delete options you do not use.
- Decide the fee percentage and the compensation definition first; see placement fee percentages.
- Send it before you submit any candidate names.
- Both parties sign. Store the signed PDF. In LiveRec you can upload it on the client page and the client confirms by email link; signed agreements are kept 7 years then deleted.
- For a retained search, change section 3 and read contingent vs retained.
Template (copy from here)
RECRUITING FEE AGREEMENT
This agreement is made on [DATE] between [RECRUITER LEGAL NAME / BUSINESS NAME], of [RECRUITER ADDRESS] ("Recruiter"), and [CLIENT LEGAL NAME], of [CLIENT ADDRESS] ("Client").
1. SERVICES
Recruiter will identify and introduce candidates for the position(s) listed in Schedule A or later agreed in writing by email. Introducing a candidate means sending the Client the candidate's name or resume.
2. EXCLUSIVITY
[OPTION A: This engagement is non-exclusive. Client may use other recruiters.]
[OPTION B: Client will work only with Recruiter for the position(s) in Schedule A for [NUMBER] days from the date of this agreement.]
3. FEE
If Client, or any affiliate of Client, hires a candidate introduced by Recruiter, Client will pay Recruiter a fee equal to [FEE PERCENT]% of the candidate's Compensation.
"Compensation" means [OPTION A: first-year annual base salary] [OPTION B: first-year annual base salary plus guaranteed bonus] [OPTION C: first-year annual base salary, target bonus and signing bonus] stated in the offer.
[OPTIONAL FLAT FEE: For the position(s) in Schedule A the fee is [CURRENCY AMOUNT] per hire.]
If Compensation is not known at start (for example hourly), it is calculated as hourly rate x 2,080 hours.
[OPTIONAL RETAINER: Client pays a non-refundable engagement fee of [AMOUNT], credited against the final fee.]
4. WHEN THE FEE IS EARNED AND DUE
The fee is earned on the candidate's first day of work. Recruiter will invoice on that date. Client will pay within [NUMBER, e.g. 30] days of the invoice date. Late amounts bear interest at [RATE]% per month or the maximum allowed by law, whichever is less.
5. PROTECTION PERIOD
If Client hires a candidate introduced by Recruiter within [NUMBER, e.g. 12] months of the introduction, in any role and through any route, the fee applies. A candidate Client can show it was already considering in writing before the introduction is not covered.
6. GUARANTEE
If a hired candidate leaves or is dismissed for cause within [NUMBER, e.g. 90] days of the start date, Recruiter will, at Client's choice:
[OPTION A: refund the fee prorated by days remaining in the guarantee period.]
[OPTION B: refund [PERCENT]% of the fee.]
[OPTION C: conduct one replacement search at no additional fee.]
The guarantee does not apply if the departure results from position elimination, a change of role, relocation or a layoff by Client, or if the fee is unpaid. Refunds are due within [NUMBER] days of written notice.
7. CONFIDENTIALITY AND CANDIDATE INFORMATION
Each party will keep the other's confidential information private and will use candidate information only for evaluating that candidate. Client will not forward a candidate's resume to others.
8. NO EMPLOYMENT OR AGENCY
Recruiter is an independent contractor. Recruiter does not guarantee a hire or a candidate's performance, and does not run background checks unless agreed in writing. Client is responsible for lawful hiring decisions and for any required background screening and consent.
9. GENERAL
This agreement is governed by the laws of [STATE]. Disputes will be heard in [COUNTY, STATE] courts [OPTIONAL: or resolved by arbitration in [CITY]]. This is the entire agreement and can be changed only in writing signed by both parties. [OPTIONAL: The prevailing party recovers reasonable legal fees.]
SIGNED
Recruiter: [NAME, TITLE] [SIGNATURE] [DATE]
Client: [NAME, TITLE] [SIGNATURE] [DATE]
SCHEDULE A - POSITIONS
Title: [ROLE] Location: [CITY / REMOTE] Salary range: [RANGE] Fee: [PERCENT or FLAT]Customization notes
- Fee percentage: no standard exists. Choose yours; see how to set it. Worked example (illustrative): 20% x USD 120,000 base = USD 24,000.
- Compensation definition: the most disputed clause. Choose one option and be explicit about bonus.
- Guarantee: longer guarantees win clients but cost you. Example: fee 24,000, 90 days, prorated, hire leaves on day 45: refund 24,000 x 45/90 = 12,000.
- Protection period: enforceability varies by state; counsel should check.
- Interest and legal fees: some states cap interest; check.
- Split placements: use a separate short agreement between the two recruiters stating each share before you submit.
- Outside the US: do not use this unchanged. For India, see commission guide; have local counsel adapt.
- Candidates: do not charge candidates a fee; rules vary.
FAQ
Can I use this without a lawyer? It is a starting point. Have an attorney in your state review it before you rely on it.
Is an email agreement enough? A signed document is far safer for disputes.
What if the client hires someone I sent months ago? The protection period covers that if you set one.
Does LiveRec take part in my agreement? No. It stores the signed copy and notes client confirmation. Your agreement is between you and your client.
Related
Sources
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.