Email template · Staffing agency (client and candidate)
Terms of business email
In short
A recruitment terms of business email sends a new or existing client the agency's fee agreement for signature. It summarizes the key commercial points (fee, guarantee, payment terms, ownership of introductions) in plain language, attaches the full terms and asks for a signature before candidates are submitted. Templates below cover new clients, a live role, renewals and a follow-up.
When to send it: Right after a first call where the client agrees to work with you, and always before you submit the first candidate. Send renewals 30 days before existing terms expire or whenever your rates change.
Terms of business email: 4 versions
New client
SubjectOur terms of business for your review
Hi [Client First Name], Thanks for the conversation today. As promised, our terms of business are attached for review and e-signature: [E-Signature Link]. The main points in plain English: - **Fee:** [Fee Percentage]% of the candidate's first-year base salary, payable only if you hire someone we introduce. - **Guarantee:** if a placed candidate leaves or is let go within [Guarantee Period] days, we'll [replace them at no cost / refund (Refund Schedule)]. - **Payment:** invoices are due within [Payment Terms] days of the start date. - **Introductions:** a candidate we introduce is considered ours for [Ownership Period] months. If you hire them in that window, the fee applies. Happy to walk through any clause on a call. Once it's signed, I'll start on the [Job Title] search straight away. [Your Name] [Title], [Agency Name] [Phone Number]
Fee agreement with a live role
SubjectTerms for the [Job Title] search: signature needed before submittals
Hi [Client First Name], We've started sourcing for the [Job Title] role and I expect to have strong profiles to share by [Date]. Before I send candidate details, could you sign our terms of business here: [E-Signature Link]? The fee for this role is [Fee Percentage]% of first-year base, with a [Guarantee Period]-day guarantee, as we discussed. If your company has its own supplier agreement you'd prefer to use, send it over and I'll review it today. [Your Name] [Title], [Agency Name]
Annual renewal or rate change
SubjectUpdated terms of business from [Effective Date]
Hi [Client First Name], Our current terms with [Client Company] run until [Expiry Date]. Updated terms are attached for signature: [E-Signature Link]. What's changed: - [Change 1, e.g. temp markup on light industrial roles moves from (Old)% to (New)% to reflect the state minimum wage increase] - [Change 2, e.g. the guarantee period extends from 60 to 90 days for roles above $(Salary Threshold)] Everything else stays the same. Roles already in progress will be completed on the current terms. If it's easier to talk it through, I'm free [Day] or [Day]. [Your Name] [Title], [Agency Name]
Follow-up on unsigned terms
SubjectRe: Our terms of business for your review
Hi [Client First Name], Just following up on the terms I sent on [Date]. I have [Number] candidates ready for the [Job Title] role and don't want them to go elsewhere while we wait. If any clause is holding things up, tell me which one and I'll see what I can do. [Your Name] [Agency Name]
Subject line ideas
- Our terms of business for your review
- Terms for the [Job Title] search: signature needed before submittals
- Updated terms of business from [Effective Date]
- Fee agreement for [Client Company] and [Agency Name]
- Re: Our terms of business for your review
- Recruitment terms ready for e-signature
- Quick signature before I send candidates
SMS and WhatsApp version
Hi [Client First Name], it's [Your Name] at [Agency Name]. I've emailed our terms of business for the [Job Title] search. Once signed, I can send the first candidates today. Happy to discuss any clause: [Phone Number].
Placeholders to replace: [Client First Name], [Client Company], [Job Title], [Fee Percentage], [Guarantee Period], [Refund Schedule], [Payment Terms], [Ownership Period], [Effective Date], [Expiry Date], [E-Signature Link], [Phone Number], [Your Name], [Title], [Agency Name]
Get terms signed before you submit anyone
Most fee disputes start with a candidate sent before terms were in place. The client interviews, hires and then says they never agreed to a 25% fee, or that they already knew the candidate. Courts in many jurisdictions will look for evidence that the client accepted your terms, and an unsigned PDF attached to an email is weak evidence. The safest rule: no candidate names or resumes until terms are signed, or at minimum, explicitly accepted by reply.
You can still move quickly. Start sourcing while the client reviews, send anonymized profiles if they want a sense of the market, and use e-signatures so signing takes two minutes. Keep the latest version of your terms as a template in your document templates library so nobody sends last year's rates. Our recruitment agency terms of business template covers the clauses a standard agreement needs.
Which clauses to summarize in the email
Clients rarely read the full terms. Summarize the four or five points that cause most disputes, in plain language:
- Fee basis. Contingency fees typically run 15% to 25% of first-year base salary for permanent roles, sometimes higher for executive or niche searches. Say whether bonus or commission counts in the calculation.
- Guarantee or rebate. A common structure is a 60 to 90 day replacement guarantee or a sliding refund. State the conditions, for example the invoice must be paid on time.
- Payment terms. Net 14 or net 30 from start date are common.
- Ownership of introductions. How long a candidate you introduce remains yours if the client hires them later, often 6 to 12 months.
- Temp-to-perm conversion fee, if you also supply temporary workers.
For temp staffing, the equivalent summary covers markup or bill rates, overtime billing, timesheet approval and invoicing frequency. The glossary entry on placement fee explains the common fee structures.
When the client wants to use their own agreement
Large employers usually have a standard supplier agreement, sometimes managed through procurement or an MSP, and won't sign agency paper. That's normal. Read theirs for the same five points, and push back on clauses that are unusually one-sided: very long guarantee periods, payment terms beyond 60 days, or a right to hire any candidate you've introduced after a short window with no fee. Confirm in writing which document governs, so there's no argument later about whether your terms or theirs apply. Then follow up with the job order confirmation email that references the signed agreement by date.
Tone with new clients
A terms email is a commercial document, but it shouldn't read like a legal notice. Confident and plain works best: here's how we charge, here's what you're protected by, sign here. If you've just had a good first meeting, the staffing agency introduction email set the relationship tone; this email keeps it. Never apologize for your fee or offer a discount in the same message, because that invites negotiation on every role.
Mistakes to avoid
- Submitting candidates on a verbal agreement.
- Burying the fee on page four of a PDF and not mentioning it in the email.
- Using different terms for different recruiters at the same agency.
- Not tracking expiry, so a client keeps hiring on terms that ended last year.
- Agreeing to the client's terms without reading the guarantee and payment clauses.
Frequently asked questions
How do I send terms of business to a recruitment client?
Email a short summary of the fee, guarantee, payment terms and candidate ownership period, attach or link the full terms for e-signature, and ask for a signature before you submit candidates.
What should a recruitment fee agreement email include?
The fee percentage and what it's calculated on, the guarantee or refund terms, payment terms, how long introductions remain valid and a link to sign. Offer to discuss any clause.
What is a typical recruitment agency fee?
For contingency permanent placements, a common range is 15% to 25% of first-year base salary, with retained and executive searches often higher. Rates vary by market, role level and volume.
Can I submit candidates before the client signs terms?
You can, but it's risky. If the client hires without signed terms, your fee may be hard to collect. At minimum, get written acceptance of the terms by email before sending names.
What if the client sends their own supplier agreement instead?
Review it for fee, guarantee, payment terms and candidate ownership, negotiate anything unreasonable, and confirm in writing that their agreement governs the relationship.
How often should terms of business be renewed?
Many agencies review them annually or whenever rates change. Send updated terms about 30 days before the effective date and confirm that roles in progress stay on the old terms.