What is an Introduction Contract?
- career
- Sep 16
- 2 min read
A Guide for Smooth and Risk-Free Hiring with Recruitment Agencies
Hello, we are JMD Career Japan.
In this article, we will explain what an Introduction Contract is and why it is essential when working with a recruitment agency.
1. What is an Introduction Contract?
An introduction contract is a formal agreement between a company and a licensed recruitment agency before the agency introduces candidates.
By signing this contract, both parties agree on the rules, fees, and responsibilities, which helps ensure a smooth and transparent hiring process.
2. Key Points Covered in the Contract
Typical contents of an introduction contract include:
Placement fee: A success-based fee paid when the candidate joins the company (usually a percentage of the annual salary).
Refund policy: Conditions and percentage of fees refunded if the candidate resigns within a certain period.
Confidentiality: Rules on handling candidate and company information.
Exclusivity: Whether the position is handled only by one agency or multiple agencies.
Other conditions: Selection process, responsibilities, and communication protocols.
3. Why Is the Contract Necessary?
Some companies may think, “Can’t we just get candidates without signing a contract?”
In reality, the contract provides several advantages:
Prevents financial disputes by clarifying fees and refund policies.
Reduces information risks by setting clear confidentiality rules.
Speeds up the process by agreeing on conditions beforehand.
4. Avoiding Common Issues
Without a clear contract, companies often face problems such as:
Unexpectedly high fees after a hire.
No refund even when the candidate leaves early.
Mismanagement of candidate information.
A well-drafted contract prevents these issues and protects both the company and the recruitment agency.
5. Conclusion
An introduction contract is not just a formality. It is an essential step to ensure safe, transparent, and efficient recruitment.
By agreeing on terms in advance, companies can reduce risks and focus on hiring the best talent.
At JMD Career Japan, we provide full support from contract signing to candidate introduction and post-hire follow-up.
If you are considering hiring talent in Japan, please feel free to contact us.
JMD CAREER JAPAN CO.,LTD
3F JMD Building,
2-8-9, Shibaura, Minato-Ku, Tokyo 108-0023 Japan
Tel:- +813-3453-7283
Fax:-+813-5439-9091
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