Terms of Business
These terms and conditions are the standard terms on which Communicators – A division of Porter Novelli Limited (“Communicators”) provide you (the “Client”) with services relating to the introduction and potential employment of new employees or independent contractors (the “Candidates”).
These terms and conditions apply to all introductions of Candidates for employment, or for engagement as an independent contractor, and cover the basis upon which Candidates are introduced by Communicators to the Client. These terms and conditions are legally binding on the Client from the date of the Client’s signature.
Communicators undertakes not to disclose, during or after its term of appointment, any confidential information received from or relating to the Client except as required by law.
All information in respect of a Candidate is confidential information provided to the Client for the sole purpose of enabling the Client to decide whether the Candidate is suitable for employment. The Client will keep such information confidential and will not use it for any other purpose.
The provisions of this clause will continue to bind the parties after these terms and conditions have ceased to apply, apart from where the confidential information is publicly available.
4. Introduction of Candidates
A fee as set down in section 5 (Fees) will be charged in relation to any Candidate engaged as a consequence of or resulting from an introduction either directly or indirectly by or through Communicators.
Where any Candidate introduced by Communicators to the Client is already known to the Client, the Client shall notify Communicators of that fact within 24 hours from the introduction, failing which the Client will be liable to pay Communicators’ fees in the event of an engagement.
The Client will also be liable for payment of Communicators’ fees as set out in section 5 (Fees) where:
the Candidate has initially been presented to the Client for either a permanent or contract position and is instead subsequently appointed by the Client to a variation of that position or to an alternative position; or
the Candidate has initially been presented to and employed by a Client for a contract position and is subsequently appointed by the Client to a permanent position; or
- the Candidate is initially employed as a fixed term contractor for a term of less than 12 months and is reemployed at the end of the contract period for a further term; or
the Client refers a Candidate or provides information relating to a Candidate to another person, firm or corporation which results in the engagement of that Candidate within 12 months of such information being made available to the Client by Communicators.
(a) Fee Charges
The Client shall pay a fee calculated in accordance with these terms and conditions if a Candidate referred to or interviewed by the Client for any position, by Communicators is employed as an employee or engaged as an independent contractor by:
the Client; or
any other person or organisation to whom the Candidate is referred by the Client;
within 12 months of the date on which Communicators first introduced the Candidate to the Client or within 12 months of the date of termination of employment where there is subsequent re-engagement of that Candidate by the Client.
For the purposes of this clause, “Candidate” includes any person contained in a submission or short list made by Communicators to the Client, even though the person may be presented independently to the Client.
(b) Calculation of Fee
Our fee for permanent positions is calculated as 15 percent of the anticipated first year’s gross annual remuneration package including bonuses, profit share, car allowances or cash alternatives and living or accommodation allowances.Where profit share or a bonus is offered and the amount is not readily able to be calculated it will be calculated at 50 percent of the estimated amount quoted, or 50 percent of the midpoint where a range is quoted.
The fee for contract positions is 15 per cent of the gross fixed term remuneration package negotiated or the anticipated gross total amount to be received over the contracted term of employment, calculated on the basis of the hourly rate plus any additional allowances and bonuses negotiated with the candidate. The total is calculated over the negotiated term of employment up to 12 months. A further fee, of 15 percent of the gross remuneration package for the period of employment up to 12 months, is payable under the circumstances covered in Section 4 (c).
(c) Progressive Invoicing
This clause applies only to assignments where Communicators has been given exclusivity.
Because our work commences immediately and continues in stages through to completion of the assignment, Communicators may operate a progressive invoicing system as follows.
An installment of 3.75 per cent of the anticipated annual remuneration package (pro rated for shorter term contract positions) is invoiced on completion of the Communicators’ searching and screening process and production of a long list.
A second installment of 3.75 per cent of the anticipated annual remuneration package (pro rated for shorter term contract positions) is invoiced on completion of the interviewing process and submission of a short list. The final installment of the balance of the fee is payable when the candidate has accepted the position.
(d) Changes and Cancellation
(i) If the Client cancels the assignment at any stage of the process the installments already paid or invoiced are forfeited.
(ii) If the Client changes the brief, changes the job description and/or creates a new engagement the installments already paid or invoiced are forfeited.
(e) Other Chargeable Expenses
Where the Client agrees that Communicators should provide other services which incur costs e.g. advertising, candidate interview and travel expenses and testing of candidates, such services will be charged to the Client in addition to Communicators fee. The cost of these services will be agreed in advance before they are charged to the Client and are payable within seven days of receipt of the invoice.
Our fee structure is based on prompt payment and so our terms of engagement require that all fee invoices be paid 21 days from the date of invoice. Communicators reserves the right to charge interest at a rate of one percent per month to invoices outstanding after 30 days.
6. Replacement Guarantee
Communicators undertakes to find a replacement for the appointee should he/she be dismissed by the Client or leave within 3 months of the commencement date. In this instance a further consulting fee will not be charged but the client is responsible for all expenses including advertising costs and any fee adjustments for differences in remuneration provided that:
Communicators has received payment of all invoices in accordance with these terms and conditions; and
Communicators receives written notification from the Client of the termination of the Candidate’s employment within seven days of such termination; and
The termination is not due to redundancy; and
The Client uses Communicators exclusively for a minimum period of two months from the date of notification of the termination to find the replacement and does not cause unreasonable delay in the interview process during this two month period.
7. Candidate Security
The provisions of the Privacy Act 1993 require employers and their agents to obtain the authority of candidates before seeking information from sources other than the Candidates themselves. In addition, our ability to attract good candidates depends on our guarantee of confidentiality and security of all the information provided. As the Client, you undertake that you will comply with all applicable privacy laws in relation to the Candidate.
8. Nature of Relationships
If a Candidate is employed by the Client, the Client becomes the employer of the Candidate and will be responsible for complying with all legislation (including but not limited to the Employment Relations Act 2000) relating to employers and employees.
Communicators endeavours to ensure the suitability of any Candidate introduced to the Client but gives no warranty for such suitability or for the accuracy of the information obtained from either the Candidate of from any other person in connection with the Candidate.
The Client accepts and acknowledges that they have absolute discretion as to the employment or engagement of Candidates, and shall satisfy themselves as to the suitability of any Candidate prior to an engagement. The Client shall be responsible for arranging all medical examinations and all criminal record and authenticity checks and for obtaining any work and other permits and complying with any other requirements by law.
Any Candidate’s reference that Communicators may provide during the recruitment process or at any time after that, is provided without liability and in strict confidence for the Client’s information only. The Client agrees not to disclose such information to any other person.
Communicators will not be liable for any misleading statements or misrepresentations made by or on behalf of the Candidate or by any referee or former employer of the Candidate.
- Communicators shall not be liable under any circumstances for any loss, damage or expense suffered of incurred by the Client arising from the recruitment of any Candidate, or resulting from the acts of omissions of a Candidate, or from any delay or failure by Communicators to refer a candidate to the Client.
The Client indemnifies Communicators against any loss, damage or expense suffered by Communicators arising from the referral of, or any acts or omissions of, any Candidate or the Client, or arising from any breach of these terms and conditions, by the client.
The provisions of this clause continue to bind the parties after these terms and conditions have ceased to apply.
10. Intellectual Property
Any intellectual property, including all rights to, and any interests in, any trade mark, copyright, know-how, trade-secret or any other proprietary form of intellectual property, customer list, system, process, logo, mark or style which is developed under these terms and conditions will remain the property of its current owner.