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Legal Documents for Recruitment Agencies in Ireland

Recruitment agencies in Ireland sit at the intersection of employment law, data protection, and commercial contracting. You handle sensitive candidate data (CV, salary history, references), place workers who may be employees or contractors, and manage complex fee arrangements with clients. GDPR compliance is particularly important given the volume of personal data processed. Clear terms of business protect your fees, and proper contractor documentation prevents Karshan reclassification issues for placed workers.

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Common Legal Mistakes in Recruitment

Weak terms of business with clients

Recruitment agencies frequently lose fees because their terms of business are vague about when fees are triggered, what happens if a candidate is hired after the introduction period, or how rebates work. A proper service agreement should define introduction, fee triggers, rebate periods, transfer fees, and payment terms.

GDPR non-compliance for candidate data

Recruitment agencies process large volumes of sensitive personal data including CVs, salary history, references, and sometimes health information. Under GDPR, you need explicit consent for data retention, clear retention periods, and a proper privacy policy. The DPC has investigated recruitment agencies for holding candidate data indefinitely without consent.

Not addressing contractor vs employee status for placements

If you place workers as "contractors" but the end client controls their work like employees, both you and the client face Karshan reclassification risk. Your contracts should clearly establish the employment status framework and allocate the reclassification risk.

Frequently Asked Questions

Key provisions include: fee structure (percentage or fixed), when the fee is triggered (start date, acceptance, introduction), introduction period definition, rebate provisions (pro-rata for early leavers), transfer fees for temp-to-perm, payment terms, and exclusivity or retained search terms.
The DPC expects recruitment agencies to have clear retention periods and not hold data indefinitely. A common approach is to retain active candidate data for 12-24 months, then seek re-consent or delete. You must inform candidates of your retention policy in your privacy notice and obtain consent for marketing communications.
For contractor placements, ensure the contractual framework passes the Karshan five-step test. The contract should demonstrate genuine contractor status (own business, multiple clients, no mutuality of obligation, control over how work is done). For borderline cases, consider placing through an umbrella company or as a direct employee.

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