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Home / Contracts & Documents / Recruitment & Staffing Agreement
Last updated: 2 October 2026
Whether you hire through a recruitment agency or deploy contract staff through a staffing company, the agreement decides fees, replacements, compliance and liability. Expertvuw’s team drafts recruitment, staffing and RPO agreements for employers and agencies.
Permanent placement agreements cover fees (often a percentage of annual CTC), when fees are earned, replacement guarantees if a candidate leaves early, candidate ownership, confidentiality and non-solicitation. Contract staffing or manpower supply agreements are different: the staffing company employs the workers and deploys them to the client, and both parties have statutory responsibilities.
Under the labour codes in force from 21 November 2025, contract labour rules under the OSH Code apply above prescribed thresholds, contractors may need licences, and the principal employer can be responsible for wages and social security contributions if the contractor defaults. Staffing agreements should therefore allocate PF, ESI, wage, bonus and gratuity compliance clearly, with audit rights and indemnities.
Recruitment process outsourcing (RPO) agreements add service levels, data handling and reporting. Candidate personal data should be handled in line with the DPDP Act, 2023.
Basis: Indian Contract Act, 1872; Occupational Safety, Health and Working Conditions Code, 2020 (contract labour provisions); Code on Wages, 2019; Code on Social Security, 2020; Digital Personal Data Protection Act, 2023. Last updated: 27 September 2026.
Often a percentage of annual CTC, earned on joining.
Common guarantee if the candidate leaves early.
OSH Code provisions apply above thresholds.
Can be liable if the contractor defaults on dues.
PF, ESI and wages must be clearly allocated.
Candidate data is covered by the DPDP Act.
Staffing disputes usually concern money and compliance.
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Recruitment agreements connect with these services.
Employment contracts.
Social security registration.
Labour code compliance.
Vendor contracts.
Review the arrangement and risks.
Prepare the agreement.
Set out compliance responsibilities.
Parties review and negotiate.
Execute and stamp.
Track compliance and fees.
Monitor compliance throughout.
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Share your query and our team will reply during business hours.
Placement fills permanent roles on your payroll; contract staffing deploys workers employed by the staffing company.
It can be, if the contractor fails to pay wages or social security contributions.
Often a percentage of the candidate’s annual CTC, as agreed.
Under the OSH Code, above prescribed thresholds.
Yes. Candidate personal data should be handled under the DPDP Act.
ACS – Director, Expertvuw Management Pvt Ltd
Agreements and policies are drafted by Expertvuw’s team for your review and negotiation. Where you need a legal opinion, dispute advice or representation, it is provided by independent advocates. Expertvuw is a corporate services company, not a law firm.