CPC Contract Negotiation & Placement Agreements 3

Question 1

Co-employment risk in temporary staffing arrangements primarily exposes the client to:

Accepted Answer

Potential obligations for employee benefits and employment law compliance as if the temp were a direct employee

Answer

When clients direct and control temp workers similarly to their own employees, courts may deem them co-employers, making them liable for benefits, discrimination claims, and other employment law obligations.

Question 2

Which contractual provision best protects a recruiting firm from having a client hire a presented candidate directly after the agreement expires?

Accepted Answer

A tail clause specifying that a fee is owed if the client hires a presented candidate within a defined period after the agreement ends

Answer

A tail clause (or fall-off clause) extends the fee obligation for a specified period — commonly 6 to 12 months — after the contract ends, preventing clients from waiting out the agreement to avoid paying for referred candidates.

Question 3

In executive search, fees expressed as a percentage of first-year total compensation are most commonly set in the range of:

Accepted Answer

25–35%

Answer

Executive search fees typically range from 25% to 33% of the placed executive's first-year total compensation, reflecting the specialized nature of senior-level searches.

Question 4

A 'scope of work' section in a placement agreement is critical because it:

Accepted Answer

Clearly defines the position, qualifications, compensation range, and recruiter's responsibilities to manage expectations

Answer

A detailed scope of work prevents misunderstandings by documenting exactly what role is being filled, what qualifications are required, and what each party is expected to contribute during the search.

Question 5

When a dispute arises over a placement fee, what clause in the agreement would determine whether the matter goes to arbitration or litigation?

Accepted Answer

The dispute resolution clause

Answer

A dispute resolution clause specifies the agreed mechanism for resolving disagreements — such as mandatory arbitration, mediation, or litigation — and the governing jurisdiction, avoiding costly and uncertain legal proceedings.

(CPC) Certified Personnel Consultant Practice Test

(CPC) Certified Personnel Consultant Practice Test

CPC Contract Negotiation & Placement Agreements 3