Sales Contract Template for Recruitment Businesses (UK 2025)
Last updated: February 2025
Why Recruitment Businesses Need a Sales Contract
Recruitment sales contracts are used for high-value retained searches, RPO arrangements, and exclusive mandates where the commercial value justifies a formal contract beyond standard terms of business. These must address the phased fee structure, exclusivity terms, the specific search methodology to be employed, and detailed service level commitments. The contract typically involves upfront payments, making clear deliverable commitments and performance guarantees essential.
Key Clauses for Recruitment
- Phased fee structure with upfront, shortlist, and placement payments
- Exclusivity terms and competitor restriction provisions
- Search methodology and sourcing strategy commitments
- Performance guarantees including replacement and extended rebate terms
Common Mistakes
- Not including clear deliverable commitments at each fee payment stage, leaving the client paying without accountability
- Failing to define exclusivity terms precisely enough, allowing the agency to deprioritise the search in favour of easier placements
Template Sections
- Phased fee and payment trigger schedule
- Exclusivity and search commitment terms
- Performance guarantees and replacement provisions
FAQ
How should fees be structured in a retained recruitment sales contract?
The standard retained search structure is three equal payments: one-third on engagement covering research and longlisting, one-third on shortlist presentation, and one-third on successful placement. Some contracts use a 40-30-30 or 50-25-25 split. Each payment should be linked to specific deliverables, and the contract should specify what happens to fees paid if the search is unsuccessful or terminated early.
What exclusivity should a retained recruitment sales contract provide?
During the retained search period, the client should agree not to engage other agencies or advertise the role directly for the same position. In return, the agency commits to dedicated resource allocation and specific timelines. Define the exclusivity period typically as 8-12 weeks, with provisions for extending if the agency is meeting milestones, and a mechanism for the client to terminate exclusivity if agreed milestones are consistently missed.
Generate this contract in 60 seconds
AccountsOS generates customised, UK-compliant sales contracts. From £10/month.
Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
View all templates