Staffing Agency Contract: All You Need to Know
7 min.

In today’s dynamic job market, both employers and job seekers often turn to contract staffing to bridge the gap between talent and opportunity. A staffing agency contract plays a pivotal role in formalizing this relationship and ensuring a smooth collaboration between all parties involved.

ProCoders is an expert in this topic as we’ve been providing partners with temporary employees for over 9 years now. Our skilled engineers have completed more than 150 teams, working on projects of various difficulties, in industries from eCommerce to metallurgy.

In this comprehensive guide, we will explore everything you need to know about such service providers, including key terms and legal considerations.

What Services Does a Contract Staffing Firm Provide?

Staffing companies can help you solve issues with hiring skilled employees.

Contract staffing firms, also known as staff augmentation companies, offer a range of services to businesses seeking temporary or even permanent staff solutions. These services can include:

Talent Acquisition

Such an independent contractor is an expert in sourcing, screening, and selecting the best candidates for various job positions. They maintain a database of qualified professionals and match them to job openings based on specific requirements. Additionally, by leveraging advanced technology such as talent acquisition software, they can further enhance their capabilities. It enables the contractor to efficiently manage a vast pool of talent, ensuring that the most qualified individuals are seamlessly connected with suitable job opportunities.

Temporary Employee Assignment

Many businesses turn to staff augmentation partners such as ProCoders to meet short-term project-based staffing needs. Whether it’s covering employee vacations, seasonal surges, or special projects, contract staffing firms can provide temporary workers with the necessary skills. We at ProCoders actually hire all our employees full-time so that they are available for your team anytime.

Permanent Placement

In addition to temporary employees, such “recruiters” assist in permanent placements. They identify and recruit experts for work on a permanent basis, often handling the entire hiring process from initial interviews to final negotiations.

Specialized Expertise

Some recruiters focus on specific industries or job types, such as healthcare, IT, engineering, or administrative roles. This specialization allows them to better understand the unique needs of clients and job seekers. ProCoders, for example, is a software development staff augmentation company of the international level. We turn our partners visions into reality by utilizing top recruitment strategies to get the best talent to support your app or website.

Administrative Support

Contract staffing partners such as ProCoders typically handle administrative tasks related to employment, such as payroll processing, benefits administration, and compliance with law. Here, we take all the HR hassles off your hands, saving you 99%+ of human resources spending.

Responsibilities of Contract Staffing Services Providers

When engaging with such a service provider, it’s essential to understand their responsibilities to ensure a successful partnership. Here are some key responsibilities of contract staffing businesses:

  • Candidate Sourcing: We’re are responsible for finding and presenting qualified candidates from the best offshore software development countries to clients. This involves screening through our pool of applicants, conducting interviews, and assessing skills and qualifications.

    At ProCoders, the recruitment process consists of at least 4 stages, including initial interviews with team leads and practicing tech specialists, as well as troubleshooting and other tests. We know perfectly how to hire offshore developers to match your project’s needs.

  • Screening and Background Checks: Agencies perform background checks and reference checks to ensure their future employees meet the required standards and are suitable for the position.

  • Negotiating Terms: Staffing agency contract terms include employment information such as pay rates, work hours, and collaboration durations, on behalf of both the client and the candidate.

  • Compliance: Staffing agencies must adhere to labor laws and regulations, ensuring that both clients and future employees are treated fairly and legally throughout the employment process.

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What Details Are Needed in My Staffing Contract?

A well-drafted staffing agency contract is crucial to protect the interests of all parties involved. Here are some essential details that should be included in your staffing contract, based on ProCoders experience:

Scope of Services

Clearly define the specific services the independent contractor will provide, including the type of positions to be filled (temporary staff, permanent staff, etc.) and any specialized requirements.

Payment Terms

Outline the fees and payment terms for the agency’s services. This may include placement fees, hourly rates, or other financial arrangements.


Specify confidentiality obligations to protect sensitive information about both employees and clients.

Duration of Contract

Clearly state the duration of the collaboration, especially for temporary placements. Include provisions for renewals or extensions if necessary.


Detail the conditions under which either party can terminate the contract and the notice period required.


Include any guarantees or warranties regarding the quality of workers placed by the agency.

Non-Compete and Non-Solicitation

Address any non-compete or non-solicitation clauses to prevent the agency or its employees from poaching clients or developers (or other niche workers).

Dispute Resolution

Specify the process for resolving disputes between the parties, such as mediation or arbitration.

Governing Law

Determine which state’s laws will govern the document, especially if the agency operates in multiple jurisdictions.


Verify that the agency carries appropriate liability insurance to cover any issues that may arise during the course of the contract.

Key Terms Related to a Staffing Agency Contract

Understanding the terminology commonly used in agency documents is essential. Here are some key terms you should be familiar with:

Client Company

The organization that engages the provider to find prospects for employment or project-based work.

Candidate or Temporary Worker

The individual seeking employment through the provider.

Placement Fee

The fee paid to the staffing agency for successfully filling a job position.

Bill Rate

The hourly rate charged to the client for a temporary worker’s services, which includes the worker’s pay rate and the agency’s markup.


A clause that may restrict the client from working with other providers for a specified period.

Sign & Make It Legal

Before signing a staffing agency contract, it’s crucial to review it carefully and consult legal counsel if needed. Ensure that all parties involved thoroughly understand and agree to the terms and conditions. Once signed, the document becomes legally binding, and both the agency and the client must adhere to its provisions.

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Responsibilities of the Employee

Staffing agency employee responsibilities.

While much of the focus in a staffing agency contract is on the agency-client relationship, it’s equally important to understand the responsibilities of the employee or temporary worker. These responsibilities typically include:

  • Compliance: Temporary workers are expected to comply with the policies, rules, and safety regulations of the client company.

  • Performance: Temporary workers must perform their assigned duties to the best of their abilities and meet the client’s expectations.

  • Communication: Temporary workers should maintain open communication with both the client company and the staffing agency, reporting any issues or concerns promptly.

  • Professionalism: Temporary workers are expected to represent themselves and the provider professionally while on assignment. In return, the latter ensures they properly manage the remote development team.

Why Turn to ProCoders When You Need Temporary IT Talent

ProCoders is a smart choice when you need additional tech staff or a dedicated development team!

ProCoders is an experienced contract staffing provider with almost a decade of experience. We build relationships with our partners instead of simply signing up as many people as possible and trying to do less work for more money.

At ProCoders, we value:

  • Your business – we’re actually interested in your objectives and goals, as the software we create has to reflect it and boost your potential in achieving those milestones.

  • Communication – we’re in favor of transparent communication. Our partners trust us because our developers will tell them if an approach they chose won’t work or if there are difficulties in the process. With ProCoders, you can also expect regular updates and direct responses in under 30 minutes during working hours!

  • Service – our employees work with ProCoders full-time, attending conferences and taking courses to improve their skills, enabling us to provide staffing services of the highest level.if you want to learn more, you can always contact us and share the details about your idea to see how we can help!

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Can a staffing agency help me find a permanent developer?

For the duration of the contract, yes. As the term ends, you will have to renew the contract for the staff member to continue working on your projects.

How are staff augmentation provider fees typically structured?

The fees can vary but are often based on a percentage of the employee’s first-year salary for permanent placements or a markup on the temporary worker’s hourly pay rate.

Why should I consider using a staff augmentation provider for my startup?

Such a company can provide access to a pool of qualified talent quickly and efficiently, helping your startup grow without the time and effort required for traditional hiring processes.

How can I ensure that the staffing agency understands my the unique needs of my company?

Communicate your specific requirements clearly with the staffing agency, including your company culture, skillset requirements, and long-term goals, to ensure they find the right candidates for your startup.

What costs are associated with using a staffing agency?

Costs can vary, but they typically include placement fees for permanent hires and markup on temporary worker hourly rates. Discuss fee structures with the provider upfront to avoid surprises. We at ProCoders, for example, have convenient monthly payments for the work done. They work as a subscription to development services tailored to your requirements.

Are staffing agency contracts exclusive? Can I work with multiple agencies simultaneously?

Some staffing agency contract options may include exclusivity clauses, limiting your ability to work with other agencies during the contract period. It’s essential to review contract terms to determine exclusivity.

How can I assess the quality of candidates provided by a staffing agency?

Request candidate resumes, conduct interviews, and ask for references to evaluate candidates’ qualifications. Provide feedback to the provider to refine their candidate selection process.

What happens if a temporary worker from the agency isn’t a good fit for my project?

Most providers offer guarantees and will work to find a suitable replacement if a temporary worker does not meet your expectations. Be sure to clarify the agency’s replacement policies.

What legal considerations should I keep in mind when signing a staffing agency contract for my startup?

Consult legal counsel to review the contract, especially concerning confidentiality, non-compete clauses, and dispute resolution procedures. Ensure the contract aligns with your startup’s legal and operational needs.


A staffing agency contract is a vital document that outlines the terms and conditions of the relationship between a staffing agency, a partner company, and temporary staff. By understanding the services provided, the responsibilities of all parties, and the key terms involved, you can ensure a successful collaboration and navigate the world of contract staffing with confidence.

Always remember to review the contract carefully, seek legal advice if necessary, and make informed decisions to protect your interests in the dynamic world of employment and recruitment. We at ProCoders are always ready to communicate your technical needs and provide contract staffing services of the highest level. Let’s discuss your idea and find the best-matching temporary employees for your business!

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