The Direct Placement Agreement is essential for professional recruitment services in Germany, establishing a legally compliant framework for permanent placement services. It is typically used when a company seeks to engage a recruitment agency to identify and present candidates for permanent employment positions. The agreement must comply with German legal requirements, including the Civil Code (BGB), Personnel Leasing Act (AÜG), and data protection regulations (DSGVO). This document covers crucial elements such as fee structures, service scope, candidate introduction definitions, replacement guarantees, and confidentiality obligations. It's particularly important for companies without internal recruitment capabilities or those seeking specialized talent in competitive markets. The Direct Placement Agreement differs from temporary staffing arrangements by focusing solely on permanent placement services and includes specific provisions for success-based fees and candidate guarantee periods.
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1. Parties: Identification of the contracting parties - the recruitment agency and the client company
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of recruitment services to be provided
5. Exclusivity: Terms regarding whether the arrangement is exclusive or non-exclusive
6. Fee Structure: Placement fees, payment terms, and conditions for fee becoming due
7. Client Obligations: Client's responsibilities in the recruitment process
8. Agency Obligations: Agency's responsibilities and service standards
9. Candidate Introduction: Definition of what constitutes a candidate introduction and related terms
10. Data Protection: GDPR compliance and data handling procedures
11. Warranties and Representations: Guarantees provided by both parties
12. Liability and Indemnification: Limitation of liability and indemnification provisions
13. Term and Termination: Duration of agreement and termination provisions
14. Confidentiality: Protection of confidential information
15. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, etc.
1. Replacement Guarantee: Terms for replacing candidates who leave within a specified period - include when offering guarantee period
2. International Placements: Additional terms for cross-border recruitment - include when offering international placement services
3. Volume Discounts: Structure for reduced fees based on multiple placements - include for larger clients with multiple hiring needs
4. Specific Industry Requirements: Additional terms for regulated industries - include when placing candidates in regulated sectors
5. Multiple Entity Provisions: Terms for serving multiple entities within client group - include for corporate group structures
6. Service Level Agreement: Specific performance metrics and standards - include when agreed with client
7. Background Check Requirements: Specific verification requirements - include when background checks are part of service
1. Schedule 1 - Fee Structure: Detailed breakdown of fees, payment terms, and calculation methods
2. Schedule 2 - Services Description: Detailed description of recruitment services and processes
3. Schedule 3 - Data Processing Agreement: Detailed GDPR-compliant data processing terms
4. Schedule 4 - Required Candidate Information: Template for candidate information to be provided
5. Appendix A - Client Specifications: Client's specific requirements for candidates and positions
6. Appendix B - Reporting Ƶ: Standard formats for progress reports and candidate presentations
7. Appendix C - Key Contacts: List of key personnel and contact information for both parties
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