11:45 – Changes to Terms & Conditions
Edit
In this week's 11:45, Charlie presented critical updates to Kimmel & Associates' terms and conditions documentation, which hasn't been revised in approximately 12 years. The meeting focused on four specific changes to the contingency agreement and outlined new procedures for securing signed agreements, with implementation scheduled to begin Friday morning. These updates aim to strengthen the company's legal position and improve fee collection outcomes in an increasingly complex recruiting landscape.
Key Takeaways
A 12-month possessory period has been added
- Applies to direct or indirect hires for any position within client companies or affiliates
- Establishes clear timeline for fee obligations
- Provides legal protection in disputed cases
The new language:
“Our Fee will be due from you, our Client, if you hire a candidate, directly or indirectly, for any position or assignment with your company or any subsidiary or affiliate company within 12 months after we present or refer the candidate to you.”
Updated terms for placement credits
- Credits must be applied within 6 months of initiation
- Placements must be completed within 12 months of request
- Credit amount must match original fee paid
The new language:
“At the client’s request and if circumstances warrant, a credit equal to the fee paid for the separated candidate may be applied toward future placements, providing that the search is initiated within six months, and the candidate hired within 12 months of the request.”
New two-year renewal clause
- Agreement automatically renews every two years from execution date
- Termination notice must be emailed to Kimmel@kimmel.com
- Provides continuity protection with changing client personnel
The new language:
“This agreement will automatically renew every two years from the date of execution, unless either party provides written notice of termination prior to the renewal date. Client must email said notice to kimmel@kimmel.com.”
Stronger Projected Bonus Language
- Now includes projected bonuses in annualized compensation
- Encompasses base salary, sign-on bonuses, and automobile allowances
- Strengthens position for fee calculations including projected compensation
The new language:
“Annualized compensation includes base salary and any form of sign‑on, guaranteed, or projected bonuses, and automobile allowance.”
New Implementation Requirements
The new fee agreement goes into place on January 31. Three tiers of acceptable documentation have been established, with the client able to choose based on what works best for them:
Gold Standard (Highest Security):
- Traditional wet signatures
- DocuSign verification
- AdobeSign verification
Silver Standard (Acceptable):
- Adobe Fill-In signatures
- Electronic signatures without verification stamps
Bronze Standard (Minimum):
- Email acknowledgment of terms and conditions
Future changes will include industry-specific terms and conditions adjustments, along with updates to retained search agreements. The next company meeting will feature training on DocuSign and Adobe Sign implementation, followed by a roundtable discussion on maximizing agreement signing success rates.