CONTRACT 1: TERMS OF BUSINESS FOR THE INTRODUCTION OF PERMANENT OR FIXED TERM CONTRACT STAFF (TO BE DIRECTLY ENGAGED BY THE CLIENT)
1.1. In these Terms the following definitions apply:
“Agency” Calco Services Ltd (registered company no.2096554 of Melrose House, 42 Dingwall Road, Croydon, CR0 2NE (“the Agency”).
“Cancellation Fee” means the fee payable by the Client to the Agency when the Client withdraws an offer of Engagement made to the Candidate before the Candidate has accepted the offer and which is calculated in accordance with clause 3.9;
“Candidate” means the person Introduced by the Agency to the Client for an Engagement including any officer, employee or other representative of the Candidate if the Candidate is a corporate body, and members of the Agency’s own staff;
“Client” means the person, firm or corporate body together with any subsidiary or associated person, firm or corporate body (as the case may be) to which the Candidate is Introduced;
“Engagement” means the engagement (including the Candidate’s acceptance of the Client’s offer), employment or use of the Candidate by the Client or by any third party to whom the Candidate has been introduced by the Client, on a permanent or temporary basis, whether under a contract of service or for services; under an agency, licence, franchise or partnership agreement; or any other engagement; or through a limited company of which the Candidate is an officer, employee or other representative; and “Engage”, “Engages” and “Engaged” shall be construed accordingly;
“Introduction” means (i) the passing to the Client of a curriculum vitæ or information which identifies the Candidate or (ii) the Client’s interview of a Candidate (in person, by telephone or by any other means), following the Client’s instruction to the Agency to search for a Candidate; and, in either case, which leads to an Engagement of the Candidate; and “Introduces” and “Introduced” shall be construed accordingly;
“Introduction Fee” means the fee payable by the Client to the Agency for an Introduction resulting in an Engagement;
“Remuneration” includes gross 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 Candidate for services rendered to or on behalf of the Client or any third party. Where the Client provides a company car, a notional amount of £5,000 will be added to the salary in order to calculate the Agency’s fee;
“Replacement Candidate” means any Candidate Introduced by the Agency to the Client to fill the Engagement following the Introduction of another Candidate whose Engagement either did not commence or was terminated during the first 13 weeks of the Engagement;
“Vulnerable Person” means any person who by reason of age, infirmity, illness, disability or any other circumstance is in need of care or attention, and includes any person under the age of eighteen.
1.2. Unless the context requires otherwise, references to the singular include the plural and the masculine includes the feminine and vice versa.
1.3. The headings contained in these Terms are for convenience only and do not affect their interpretation.
2. THE CONTRACT
2.1. These terms of business (“the Terms”) constitute the contract between the Agency and the Client for the Introduction of permanent or contract staff (to be engaged directly by the Client) and are deemed to be accepted by the Client by virtue of an Introduction or the Engagement of a Candidate, or the passing by the Client of any information about a Candidate 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 registered director of the Agency, these Terms prevail over any other terms of business or purchase conditions (or similar) 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 a registered director of 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.
2.4. The Agency acts as an employment agency (as defined in Section 13(2) of the Employment Agencies Act 1973) when Introducing Candidates to the Client for direct Engagement by that Client.
3. NOTIFICATION AND FEES
3.1. The Client agrees to:
3.1.1. notify the Agency immediately of the terms of any offer of an Engagement which it makes to the Candidate;
3.1.2. notify the Agency immediately that its offer of an Engagement to the Candidate has been accepted and to provide details to the Agency of the Remuneration agreed with the Candidate together with any documentary evidence as requested by the Agency; and
3.1.3. pay the Introduction Fee, to be calculated in accordance with the provisions of this clause 3, by the due date for payment in clause 3.2.
3.2. The Introduction Fee calculated in accordance with clause 3.3 is payable if the Client engages the Candidate within the period of 6 calendar months from the date of (a) the Introduction, (b) the Client’s withdrawal of an offer of Engagement or (c) the Candidates rejection of an offer of Engagement, (whichever is the later).
3.3. The Introduction Fee is the amount equal to 22.7% of the Remuneration applicable during the first 12 months of the Engagement.
3.4. Where the actual Remuneration is not known, the Agency will charge an Introduction Fee calculated in accordance with clause 3.3 based on its determination of the Remuneration taking into account the market rate level of remuneration applicable for the position in which the Candidate has been Engaged and with regard to any information supplied to the Agency by the Client and/or comparable positions in the market generally.
3.5. Where prior to the commencement of the Engagement the Agency and the Client agree that the Engagement will be on the basis of a fixed term of less than 12 months, the Introduction Fee will apply pro-rata. If the Client (a) extends the Engagement beyond the initial fixed term or (b) re-Engages the Candidate within 6 calendar months from the date of termination of the agreed period of the fixed term Engagement, then the Client shall be liable to pay a further Introduction Fee based on the additional Remuneration applicable for (a) the extended period of Engagement or (b) the period of the second and any subsequent Engagement, subject to the Client not being liable to pay a greater sum in Introduction Fees than the Client would have been liable for under clause 3.3 had the Candidate first been Engaged for 12 months or more.
3.6. The Client’s obligations under this clause 3 shall be performed without any right of the Client to invoke set-off, deductions, withholdings or other similar rights.
3.7. VAT is charged at the standard rate on all fees.
3.8. The Agency reserves the right to charge interest under the Late Payment of Commercial Debts(Interest) Act 1998 unpaid by due date at the rate of 8% per annum above the base rate from time to time of the Bank of England from the due date until payment.
3.9. If, after an offer of Engagement has been made to the Candidate, the Client decides for any reason to withdraw it prior to the Candidate accepting the Engagement, the Client shall be liable to pay the Agency a Cancellation Fee of £2,500.
3.10. In the event that any Agency staff with whom the Client has had personal dealings accepts an Engagement with the Client while employed by the Agency or within 3 months of leaving the Agency, the Client shall be liable to pay the Agency a fee equivalent to the Introduction Fee calculated in accordance with clause 3.3. For the avoidance of doubt, the Client shall not be entitled to a refund for any fee due under this clause 3.10 in any circumstances.
4.1. If, after an offer has been made and accepted, the Engagement (a) does not commence because the Candidate withdraws their acceptance; or (b) once it has commenced, is terminated by either the Candidate or the Client (except in circumstances where the Candidate is made redundant) before the expiry of 12 weeks from the date of commencement of the Engagement; then subject to the terms of clause 4.2 a refund of 8% will be allowed the Introduction Fee for each complete week of the initial 12 week period not worked by the Candidate.
4.1.1. the Client must comply with the provisions of clause 3.1 and must notify the Agency in writing of the termination of the Engagement or the non-commencement of the Engagement within 7 days of its termination or non-commencement; and
4.1.2. the Client must exclusively give the Agency 4 weeks from the date of the notice of non-commencement or termination in which to find one suitable Replacement Candidate based on the original specification given for the position the Client is seeking to fill. If after 4 weeks from the date of the notice no suitable Replacement Candidate can be found, or if the Replacement Candidate’s Engagement is terminated before the expiry of 12 weeks from the date of commencement of the Engagement the Client will then be eligible for a refund, subject to the rest of this clause 4.
4.2. For the purposes of this clause 4 the date of termination of the Engagement shall be the date on which the Candidate ceases working or would have ceased working for the Client, but for any period of garden leave or payment in lieu of notice, whichever is the later
4.3. In circumstances where clause 3.5 applies, the full Introduction Fee is payable and there shall be no entitlement to a refund.
4.4. If subsequent to the Client receiving a refund the Candidate is re-Engaged within a period of 6 calendar months from the date of termination then the refund shall be repaid to the Agency. The Client shall not be entitled to any further refunds in relation to the re-Engagement of this Candidate.
5. INTRODUCTIONS TO THIRD PARTIES
Introductions of Candidates are confidential. If a Client discloses a Candidate’s details to a third party, that will be deemed to be a “Third Party Introduction”. If that Third Party Introduction results in an Engagement of the Candidate by the third party within 6 months of the Agency’s Introduction of the Candidate to the Client, then the Client will be liable to the Agency for payment of an Introduction Fee calculated in accordance with clause 3.3. Neither the Client nor the third party shall be entitled to a refund of the Introduction Fee under clause 4 in any circumstances.
6. SUITABILITY CHECKS
6.1. The Agency endeavours to ensure the suitability of Candidates Introduced to the Client to work in the position which the Client seeks to fill by taking reasonably practicable steps to:
6.1.1. ensure that it would not be detrimental to the interests of either the Client or the Candidate;
6.1.2. ensure that both the Client and Candidate are aware of any requirements imposed by law or by any professional body;
6.1.3. confirm that the Candidate is willing to work in the position.
6.2. Notwithstanding clause 6.1 the Client shall be obliged to satisfy itself as to the suitability of the Candidate for the position they are seeking to fill. The Client is responsible for:
6.2.1. taking up any references provided by the Candidate before Engaging the Candidate;
6.2.2. checking the Candidate’s right to work and obtaining permission to work as may be required by the law of the country in which the Candidate is Engaged to work;
6.2.3. the arrangement of medical examinations and/or investigations into the medical history of any Candidate; and
6.2.4. satisfying any medical and other requirements, qualifications or permission required for the Candidate to work in the Engagement.
6.3. To enable the Agency to comply with its obligations under clause 6.1 above the Client undertakes to provide to the Agency details of the position which the Client seeks to fill, including the following:
6.3.1. the type of work that the Candidate would be required to do;
6.3.2. the location and hours of work;
6.3.3. the experience, training, qualifications and any authorisation which the Client considers necessary or which are required by law or any professional body for the Candidate to possess in order to work in the position;
6.3.4. any risks to health or safety known to the Client and what steps the Client has taken to prevent or control such risks;
6.3.5. the date the Client requires the Candidate to commence the Engagement;
6.3.6. the duration or likely duration of the Engagement;
6.3.7. the minimum rate of Remuneration, expenses and any other benefits that would be offered;
6.3.8. the intervals of payment of Remuneration; and
6.3.9. the length of notice that the Candidate would be entitled to give and receive to terminate their employment with the Client.
6.4. Where the Candidate is Introduced for a position which involves working with, caring for or attending a Vulnerable Person the Agency shall, in addition to the obligations in clause 6.1, take reasonably practicable steps to:
6.4.1. obtain confirmation of the Candidate’s identity;
6.4.2. obtain confirmation that the Candidate 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
6.4.3. obtain and offer to provide copies to the Client of two references from persons who are not relatives of the Candidate and who have agreed that the references they provide may be disclosed to the Client; and any relevant qualifications or authorisations of the Candidate. If the Agency has taken all reasonably practicable steps to obtain such information and has been unable to do so fully it shall inform the Client of the steps it has taken to obtain this information in any event.
7. EXCLUSIVITY TERM
7.1 The Agency agrees to Introduce Candidates to the Client for Engagement directly by the Client for the duration of the Exclusivity Term.
7.2 The Client agrees that during the Exclusivity Term it will exclusively use the services of the Agency for the Introduction of permanent or contract staff. The Client will not use the services of any employment agency, directly or indirectly, other than the Agency save in circumstances where the Agency has searched for Candidates but is unable to introduce suitable Candidates for Engagement, or in the circumstances set out in clause 7.3.
7.3 Nothing in these Terms shall preclude the Client from
7.3.1 responding to unsolicited approaches from third party agencies by referring that agency to the Agency to serve as a sub-contractor or consultant for the Agency;
7.3.2 responding to unsolicited approaches from work-seekers directly;
7.3.3 directly approaching work-seekers using its own resources.
7.4 Subject to the provisions for earlier termination set out in clause 7.5 below, the Exclusivity Term shall terminate by either party giving the other 3 months’ notice.
7.5 Either party may immediately terminate the Exclusivity Term by notice to the other if the other:
7.5.1 commits a breach of these Terms which in the case of a breach capable of remedy shall not have been remedied within 14 days of the receipt by the other of a notice from the innocent party identifying the breach and requiring its remedy;
7.5.2 is unable to pay its debts or enters into compulsory or voluntary liquidation (other than for the purpose of effecting a reconstruction or amalgamation in such manner that the party resulting from such reconstruction or amalgamation if a different legal entity shall agree to have the contract assigned to it and to take on all liabilities and obligations thereunder whether actual or contingent).
7.6 For the avoidance of doubt in the event that the Exclusivity Term is terminated by either party, the Client remains obligated to pay any fees owed to the Agency in accordance with the Terms, irrespective of whether these fees relate to an Introduction made before or after the Exclusivity Term is terminated
8. RETAINED SEARCH & SELECTION
8.1 Where the Client instructs the Company to search for, locate and inform the Client of Candidates suitable for a Special Role (“Special Instructions”), the Client will pay the Fee in three stage payments. For the purpose of calculating the Fee the salary shall be treated as that amount which the Client informs the Company it anticipates will be paid to the Candidate who fills the special role. One third of the Fee will be payable on the giving of Special Instructions to the Company by the Client. One third of the Fee will be chargeable and payable on the Company providing the Client with a short-list of Candidates. The final one third of the fee will be chargeable when a Candidate accepts an offer of Engagement.
8.2 No stage payments are refundable in any circumstances after they become payable.
8.3 If the Client withdraws the Special Instructions before the Engagement of the Candidate takes place, it will be liable to pay the Company a stage payment of one third of the fee in addition to any stage payment that has already become payable at the time of withdrawal.
8.4 For the avoidance of doubt in the event that the Special Instructions shall include an agreement to advertise, the Client will pay the Advertising Fees in addition to the Fee (and/or any stage payment of the fee that has already become payable).
Departure of Candidate
8.5 If a Candidate leaves the employment of the Client within 12 weeks starting with the date of the Engagement, then provided that:
(a) the Client has paid the Fee and all Advertising fees within the time provided by these Terms, and
(b) the Company has received notification in writing by Recorded Delivery (or equivalent) within 7 days of the Candidate’s departure from the Client’s Engagement together with a full explanation of the circumstances of the departure, the Company will use reasonable endeavours, for a period up to six months from the date of receipt of the notification, to provide another Candidate for the role vacated for no additional fee. This Clause will not apply in circumstances where the Candidate’s employment has been terminated by reason of redundancy, or by consensus between the Client and Candidate, or if the Client elects for a refund under clause 8.6 below.
8.6 If a Candidate leaves the employment of the Client for any reason within 30 days starting with the date of Engagement, the Company will on the written request of the Client refund all of the fees paid by the Client providing the following conditions have been met:
(a) the Company is informed in writing within 7 days of the date of termination of the Engagement and of the request for refund under this clause;
(b) the Client will repay any refund if the Candidate is re-Engaged within twelve months of the date of the first Engagement;
(c) the Client has adhered to the remainder of these Terms as to payment of the Company’s Fees.
Any rights granted to the Client by this clause are alternative and not additional to any entitlement arising from clause 8.6 of these Terms.
8.7 If the Client engages the Candidate subsequent to an Introduction by the Company, the Client will pay to the Company a Fee in accordance with the following scale:
Salaries up to £99,999: 30% of salary
Salaries of more than £100,000: 40% of salary
8.8 The Client undertakes to notify the Company immediately upon the offer of an Engagement to and acceptance of an offer of Engagement by a Candidate.
8.9 The Client will pay to the Company the Fee within 14 days of the day on which the Company raises an invoice for the Fee.
(a) If the Engagement takes place outside the UK and any Salary is paid in currency other than pounds sterling, the Client agrees to pay the Fee in accordance with these Terms as if the payment currency had been converted to pound sterling at the date of the Engagement.
(b) In the event that the Engagement is for a fixed term of less than 12 months, the Fee will be calculated pro-rata. If the Engagement is extended beyond the initial fixed term or if the Client re-engages the Applicant within 6 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.
8.10 The Fee will be deemed payable on the date on which a Candidate accepts an offer of Engagement by the Client.
8.10.1 The Client not, without the prior written consent of the Company, at any time while the Company is working for or with the Client or during the period of 6 months after the conclusion of any such work, solicit or entice away from the Company or employ or attempt to employ or engage any person who is, or has been, engaged as an employee, consultant or subcontractor of the Company and has dealt with/for the Client on behalf of the Company.
Any such consent given by the Company shall be subject to the Client paying to the Company a sum equivalent to either:
(a) that set out in clause 8.7 if the individual is an employee; or
(b) 50% of the remuneration paid to the individual over a 12 month period (adjusted as necessary if the individual has worked for the Company for less than 12 months), if the individual is a consultant or subcontractor; or
(c) £25,000, whichever is greater.
9. INFORMATION TO BE PROVIDED
When the Agency Introduces a Candidate to the Client the Agency shall inform the Client that they have obtained confirmation of the matters set out in clause 6.1. Where such information is not given in paper form or by electronic means it shall be confirmed by such means by the end of the third business day (excluding Saturday, Sunday and any Public or Bank Holiday) following, save where the Candidate is being Introduced for an Engagement which is the same as one in which the Candidate has worked within the previous 5 business days and such information has already been given to the Client.
10. CONFIDENTIALITY AND DATA PROTECTION
All information relating to a Candidate is confidential and subject to the Data Protection Act 1998 (“DPA”) and is provided solely for the purpose of providing work-finding services to the Client. Such information must not be used for any other purpose nor divulged to any third party and the Client undertakes to abide by the provisions of the DPA in receiving and processing the data at all times. In addition information relating to the Agency’s business which is capable of being confidential must be kept confidential and not divulged to any third party, except information which is in the public domain.
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 a Candidate for the Client or from the Introduction to or Engagement of any Candidate by the Client or from the failure of the Agency to introduce any Candidate. For the avoidance of doubt, the Agency does not exclude liability for death or personal injury arising from its own negligence or for any other loss which it is not permitted to exclude under law.
All notices which are required to be given in accordance with these Terms shall be in writing and may be delivered personally or by first class prepaid post to the registered office of the party upon whom the notice is to be served or any other address that the party has notified the other party in writing, by email or facsimile transmission. Any such notice shall be deemed to have been served: if by hand when delivered, if by first class post 48 hours following posting and if by email or facsimile transmission, when that email or facsimile is sent.
If any of the provisions of these Terms shall be determined by any competent authority to be unenforceable to any extent, such provision shall, to that extent, be severed from the remaining terms, which shall continue to be valid to the fullest extent permitted by applicable laws.
14. GOVERNING LAW AND JURISDICTION
These Terms are governed by the law of England & Wales and are subject to the exclusive jurisdiction of the Courts of England & Wales.