Terms of Business
These Terms of Business are between the Lineage Group and its client, on every occasion that the LineageGroup is engaged to supply appropriate services across the RECRUITMENT, SEARCH,RESOURCING, SOLUTIONS, CONSULTING or TRANSITION service lines. By accepting candidates represented by Lineage Group, whether by viewing of confidential candidate reports, interviewing, employing or engaging candidates introduced and represented by Lineage Group (either in a permanent position or in a contracting capacity), the client agrees to the standard Terms of Business detailed in this document. Any variation to the standard Terms of Business must be mutually agreed by both parties in writing prior to the completion of any assignment.
1. Definitions
- Retained Assignment – the client has requested an exclusive service to source suitable candidates where the client is invoiced in stages (generally three fee payments of one-third of the total estimated fee upon acceptance of the terms of the assignment; one- third of the total estimated fee upon presentation of the shortlisted candidates and the final remaining balance upon successful placement upon confirmed acceptance of the final offer by the desired candidate).
- Executive Search – the client has requested an exclusive service to extensively research the market, through targeted and direct approaches to source and engage suitable candidates where the client is invoiced in stages (generally three fee stages as per a retained assignment in 1.1).
- Exclusive Contingent Assignment – the client has requested an exclusive service to source suitable candidates where the client is invoiced upon successful placement of the desired candidate which is deemed as completed as soon as the formal offer has been made and accepted by the successful candidate (there are cancellation costs involved should the client terminate the assignment where the client will be liable for fees up until that stage – eg. If the client terminates the assignment after the shortlist has been presented they will be invoiced a cancellation fee inline with two-thirds of the total estimated fee or if the client terminates whilst Lineage Group are sourcing and interviewing candidates the client will only be invoiced for the first-third of the total estimated fee inline with services performed).
- Competitive Contingent Assignment – the client has requested the services of 2 or more an exclusive service to source suitable candidates where the client is invoiced upon successful placement of the desired candidate which is deemed as completed as soon as the formal offer has been made and accepted by the successful candidate
- Fixed-term Placement – refers to a placement of a candidate based on a contract being for a specified period of time and fees will be agreed between both parties at the beginning of the assignment based on the length of the assignment and difficulty to source appropriate candidates.
- Contracting Assignments – refers to the provision of either an independent contractor or an on-hire employee to perform duties in- line with a specified contract for a client of Lineage Group.
- Contractor Buyout – standard permanent placement fees are charged where an on-hire employee or independent contractor is transferred into a permanent position with the same company or is alternatively engaged directly by the company or any entity to whom the client has introduced the candidate supplied by Lineage Group within a 12 month period of the completion of the contracting arrangement between Lineage Group and the client.
- Replacement Guarantee – refers to circumstances in which the successful candidate ceases employment with the client within the specified guarantee period and all requirements have been met by both parties. At this point, Lineage Group shall supply at no further cost, a replacement candidate for the same position.
2. Payment Terms
- Permanent Fees - fees and invoices for services are payable within 14 days of the invoice date.
- Contracting Fees - fees and invoices for services are payable within 7 days of the invoice date.
- Advisory and Outplacement Fees – fees and invoices are payable within 7 days of the invoice date unless otherwise specified.
- Goods and Services Tax (GST) – all fees and expenses under these terms of business and quoted to clients by Lineage Group will be exclusive of GST and will have this added and detailed in-line with the applicable statutory rate.
3. Permanent fees
- Fees for permanent assignments, fixed term assignments and contractor buyouts - are calculated as a percentage of the final negotiated annual remuneration package accepted by the candidate, including base salary, employer superannuation contributions (minimum 9.5% as of 01/07/2014), allowances, inducement payments or guaranteed bonuses and the supply of a motor vehicle (standard minimum value $20,000) or an allowance for a motor vehicle.
- Standard Fee calculations - for permanent and fixed-term placements, and contractors who are placed into permanent positions, fees are based on the employee’s first year total salary package and will be calculated as follows:
- Part-time – fees for positions placed on apart-time basis will be calculated and invoiced based on a full-time equivalent remuneration package.
- Client Responsibility – Once a successful candidate begins employment with the client, that client retains all responsibility for the employee as their contracted employer, relieving Lineage Group of any liability or obligations in respect to the employee without limitation in respect of the termination of the employees employment with the client.
- Introduction of Candidates – if a candidate is introduced or represented to the client by Lineage, and the candidate is employed in a permanent position by the client, within 12months of the last activity or communication regarding the candidate, the client must pay Lineage the appropriate permanent placement fee in accordance with these Terms of Business and Standard Fee Structure.
4. Unbundled Recruitment Services
- Position Description – Lineage Group in consultation with the client, draft and develop an appropriate and suitable position description complete with technical and non-technical competencies and company values.
- Advertising Response Management – Lineage Group will prepare and publish a tailored advertising campaign and manage candidate responses and enquiries (utilising telephone screening techniques) to provide relevant candidate profiles to the client.
- Shortlisting - Lineage Group will prepare and publish a tailored advertising campaign and manage candidate responses and enquiries, and interview suitably qualified candidates to formulate a qualified shortlist of candidates with detailed candidate reports for the client.
- InterviewAssistance – In consultation with the client, Lineage Group will prepare and develop a suite of interview guides questions designed to be used to by the client to interview candidates to qualify technical and non-technical competencies.
5. Contracting Fees
- Contracting Modifications – Lineage Group may adjust or apply variations to the fee at any time with 3-5 working days’ notice to comply with market CPI variations, changes in insurance requirements, superannuation legislation, overtime rates, allowances or any award related fluctuations in terms and conditions applicable to the on-hire employee.
2. Contracting Modifications – Lineage Group may adjust or apply variations to the fee at any time with 3-5 working days’ notice to comply with market CPI variations, changes in insurance requirements, superannuation legislation, overtime rates, allowances or any award related fluctuations in terms and conditions applicable to the on-hire employee.
3. Contracting Invoicing – The client will be required to pay the fee to Lineage Group as per the agreed and authorised number of hours the on-hire employee or independent contractor has worked. Invoices will be issued on a weekly or fortnightly basis to the client and are payable within 7 days of the issue of the invoice. Lineage Group holds responsibility for the management of remuneration, tax deductions, workers’ compensation payments, superannuation and payroll tax.
4. Contractor Expenses – all reimbursable expenses incurred by the on-hire employee or independent contractor must be agreed betweenLineage Group and the client prior to the assignment beginning or at the very least before the expense is incurred and will be supported by relevant tax invoices and reimbursed to the on-hire employee or independent contractor upon receipt of payment on the expense invoice by the client.
5. Approaches to Contractors – if the client makes an offer of permanent employment to an existing on-hire employee or independent contractor or one that has completed an assignment within the previous 12 months and that offer is accepted, then the client will be invoiced as per the standard terms of business in relation to a permanent placement fee. Also, if the client makes an offer of further contracting employment to a non-hire employee or independent contractor that has completed an assignment within the previous 12 months and that offer is accepted, then the client will be invoiced as per the standard terms of business in relation to a the engagement of an on-hire employee or independent contractor.
6. Introduction of Candidates – if a candidate is introduced or represented to the client by Lineage, and the candidate is engaged on a contract basis by the client, within 12 months of the last activity or communication regarding the candidate, the client must pay Lineage the appropriate permanent placement fee in accordance with these Terms of Business and Standard Fee Structure.
7. Client Responsibility – whilst the on-hire employee or independent contractor is in fact employed initially by Lineage Group, during the performance of the nominated contract the client is responsible for the direct supervision and management of the on-hire employee or independent contractor and is charged with ensuring their occupational health and safety inthe area of managing any discrimination or harassment issues, delivering on key responsibilities in-line with the position description and assignmentspecification, and a thorough initial induction and ongoing training inpolicies and procedures related to performing the tasks of the role.
8. Insurances – are the responsibility of the client in relation to obtaining necessary cover for the on-hire employee or independent contractor in respect to the client’s business and the tasks involved in performing their role.
6. Replacement Gaurantees
- Replacement Guarantees - Lineage Group provide a 3month standard guarantee on all permanent and fixed-term placements and a further 3 months (total 6 months) on all Retained Executive Search assignment placements and will endeavour to find a suitable replacement candidate without additional fee if the candidate resigns from the position or the client is not satisfied with the performance of the placed candidate and ceases their employment within the designated time frame from the commencement date of their employment. This guarantee is offered if the invoices and fees are paid in accordance with the agreed Terms of Business, Lineage Group is notified within7 days of candidate ending their employment, the position remains unchanged andLineage Group is the exclusive agency engaged to recruit the replacement candidate for a period of 8 weeks. This will not apply if the candidate’s employment ends for reasons beyond the control of Lineage Group such as but not limited to, redundancy due to downturn in business or restructure, closure of business or department, company takeover or the candidate was previously replaced under a replacement guarantee.
- Guarantee Conditions – a replacement guarantee is not transferrable to other placements or recruitment services, and in no way leads to any form of credit or refund for replacement due to the client deciding not to proceed with the recruitment process agreed originally.
7. Advertising and Associated Costs
- Advertising and Associated Costs – all assignment related expenses will be detailed in the Lineage Group proposal and charged to the client. Internet advertising will be charged to the client at $195 plus GST and press advertising will be quoted on a case-by-case basis.
8. Resourcing, Solutions, Consulting and Transition Fees
- Resourcing, Solutions, Consulting and Transition Fees – will vary according to the specific program that is engaged with Lineage Group directly with the client or delivered by Lineage Group on behalf of the client.The total fees will be payable in-line with the tailored proposal or in-line with standard terms of business of 7 days of the invoice date.
9. Confidentiality and Privacy
- Client Company Information – Lineage Grouprespects the confidential nature of any commercial information disclosed by theclient and will safeguard this information in the same manner as it treat’sit’s own company information.
- Candidate Confidentiality – candidates and their details represented to clients by Lineage Group are treated as confidential and LineageGroup expects the same from the client.
- Privacy Legislation – the client agrees to comply with the Privacy Act (2000) regarding all personal information disclosed for the purpose of employing or engaging a candidate in a form of employ.
10. Lineage Group Liability
- Qualifying of Information – Lineage Group has robust procedures in place to ensure the accuracy of all information supplied to clients in relation to candidates and market intelligence. Given some of this information is obtained from third party sources, Lineage Group cannot be held liable for any inaccuracy in this information. This includes human error, missing information, misleading information and any recommendations made from the information provided.
3. Lineage Group is Fully Indemnified – by the client including but not limited to termination of the assignment of the client, in relation to all losses, liabilities, costs or claims arising from any actions (whether they result from lack of skill, negligence, dishonesty or misconduct) from a candidate performing their duties in line with a permanent role or as an on-hire employee or independent contractor. This includes the failure to perform duties, personal injury or death of a candidate or any related person, and property damage as a result of the performance of job related activities. The client is responsible for the final recruitment decision and must accept responsibility for the selection of the successful candidate. The indemnity in this agreement is a continuing obligation, and separate and independent from any other obligation in this agreement, and survives termination of this agreement.
11 Variations to Standard Terms of Business
11.1 Deviation of Terms - Lineage Group will provide recruitment and consulting services in-line with these terms of business. If Lineage Group issues a document detailing the key requirements of a specific assignment or project and this document contains wording and conditions different to the standard terms of business, the aforementioned document will supersede the standard terms of business in detailed areas of difference.
