3P ASSOCIATES AGREEMENT
FRANCHISEE AGREEMENT
INDEX
|
SR NO |
CHAPTER |
PAGE NOS. |
|
1 |
Preamble |
01 |
|
2 |
Objective |
02 |
|
3 |
Idea of an Association |
03 |
|
4 |
Legal Structure |
04–06 |
|
5 |
Responsibilities |
07–11 |
|
6 |
Procedures |
12–17 |
|
7 |
Definition of Terms |
18–22 |
|
8 |
Sharing of Expenses |
23–24 |
|
9 |
Sharing of Professional Fees |
25–27 |
‘3P ASSOCIATES’ AGREEMENT
PREAMBLE
3P Consultants are a Bombay-based
Management Consultancy firm. They offer consultancy in several functional
areas. They, however, specialise in Executive Search/Selection/Placement for
Client-Companies.
To serve this purpose, 3P have
set-up a large Computerised Data Base of middle/senior-level executives.
OBJECTIVE
3P – objective is to provide a
unique Executive Search / Selection service to the Industry / Business / Trade.
Initially this will be confined to India but later on, it will be extended to
other parts of the world.
The idea is to:
- find a “near-ideal” executive-candidate for the
client-company from amongst a short-list of “Suitable” candidates.
- to convince the executive to join the
client-company by projecting proper image of the company.
- to do all these in the shortest-possible time,
thereby cutting down on the normal lead-time required by the
client-company, if it were to advertise and conduct the
recruitment-process on its own.
- offer a Search-Service which is quite economical
and less time consuming.
- help and guide executives registered with 3P to
enhance their career-growth, by providing them consultation in the area
of:
A – Industry / Company
Research
This will enable the executive to identify Industries / Companies having good
track-record / future potential.
B – Match-Making
Matching the USP (Unique Selling Proposition) of each executive with the
perceived needs of various companies in the areas of Attitudes / Skills &
Knowledge (ASK) expected of a candidate to discharge his responsibilities
competently.
C – Image – Projection
Attempt will be made to coach the executives to enable him to make a good
impression on the client.
IDEA OF AN ASSOCIATION
Whereas 3P would like to serve
Industry / Business in all parts of India, it recognise its limitations to do
so – in terms of “resources” at its disposal.
These limitations can be overcome
by forming an “Association with competent Professionals in different parts of
the country.
For this purpose 3P would like to
tie-up with self-employed professionals who are currently serving Business /
Industry as “Consultants” in areas other than “Recruitment”. For such
individuals, an Association with 3P would mean an “extension” of their consultancy-service
in the area of recruitment.
These associates must possess the
advantage of knowing Senior / Middle level executives of the Companies located
in their city, who are potential “Clients” or “Candidates”. They should also
know the client’s future expansion-plans and manpower requirements. An
associate who is a “local” person, would have better “acceptability” and in
turn, he would be able to serve / service a client better.
Normally an associate would have
to be a person who has lived in that city for long and has permanently
settled-down. He may or may not have an independent “office” and at least
initially, he could operate from his home. Irrespective of such limitations/constraints,
an associate will be expected – and be capable of – devoting enough personal
time/resources to be able to achieve monthly/quarterly/annual targets. He will
be expected to take his “associate-ship” seriously and not as a part-time
activity or a pass-time hobby!
LEGAL STRUCTURE
There will be no “name” for the
association and therefore, it will not be a legal entity. It is a group of
individuals (including firms) who have come together for rendering a service
(Recruitment) to Business / Industry, under the umbrella of 3P, and subject to
conditions listed below:
A. An associate (to 3P)
will be an individual or a firm.
B. Based upon 3P’s needs
to expand its operations / coverage in a certain geographical area, it will
select an associate.
C. The relationship
between 3P and its associate is not that between a “Principal” and an “Agent”.
An associate is not a “Branch / Dealer / Distributor or a Stockist” of 3P in
the common sense of these words.
Although, in a limited sense, an
associate does represent 3P, he is not conducting his business as a “franchise”
of 3P. Neither 3P nor an associate can “commit” the other party in
legal/financial matters when it comes to dealings with third-parties.
D. As far as possible, 3P
will associate only one person/firm from a given city/town.
E. As far as “Recruitment
/ Placement Services” are concerned, an associate will confine his activities
to a pre-agreed / pre-defined “territory”. Any extension / expansion of
territory will have to be by prior mutual agreement.
In a similar fashion, 3P will
discuss with an existing associate, if it wishes to take on another associate
in the same “territory”.
F. All the associates will
be informed of each other’s territories and will be required not to operate
(canvass clients or canvass candidates) in another’s territory.
G. The day-to-day
relations between 3P and its various associates, will be governed by the
“Definitions” as listed in Chapter VII.
H. In conducting the
business of Search/recruitment/placement services, 3P will lay down, from
time-to-time:
- Business Mission
- Corporate objectives
- Strategies
- Policies
- Systems & Procedures
- Performance Criteria etc. etc.
Wherever possible, these will be
evolved thru mutual/common discussions with all the associates and will become
binding on all concerned once adopted / circulated. Any changes in these will
be intimated by 3P to all associates.
I. 3P will “associate” an
individual/firm on an “ongoing” basis.
Although every associate will be required to sign a copy of this Memorandum in
acceptance of everything that is laid-down here, there will be no specific
“Time-Duration” for this association.
However either party will be free
to disassociate himself from the other by giving to the other a 3 month’s
notice in writing to that effect. No reason need be assigned to such a notice.
However, in case of gross
violation of professional ethics by an associate, 3P would have the right to
“disassociate” him forthwith after giving him 15 day’s time to defend himself.
Amongst others, such gross
violations will consist of, one or more of the following:
- Encroaching on another associate’s territory.
- Short-circuiting/bypassing of 3P while placing a
candidate with one of the clients in his territory.
- Accepting money from a candidate (other than
Registration Fees, when introduced) for rendering placement-service.
- Accepting a placement-assignment from a client and
not passing on the same to 3P.
- Accepting direct payments from client in one’s own
name and retaining the same (not passing-on to 3P).
- Associating/Tie-ing up with another Placement
Agency.
- Thru willful/negligent actions,
committing/involving 3P in a legal action with any third-party.
- By false representation as an “Agent” of 3P,
creating financial liability for 3P.
- Enticing for second placement, an executive already
once placed by 3P or by anyone of its associates.
- Unauthorisedly passing-on to any other person
(other than the designated manager of a client-company), details/bio-data
of executives who are registered with 3P or who form part of 3P’s DataBank
records.
- Revealing an executive-candidate’s identity to
anyone in any other organisation except to the designated manager of a
client-company and that too only when a client has expressed a desire to
meet such an executive for consideration against a specific vacancy and
for which the concerned candidate has also shown his willingness.
- Any other act of an associate which, in the sole
opinion of 3P, is likely to damage the reputation of 3P and/or adversely
affect its business.
- Repeated and consistent failure to reach “order
booking” / “Invoicing” targets set for his territory.
3P, at its discretion, will
intimate its clients of such “disassociations”.
J. Branding / Usage Rights
As long as a person/firm
continues to be an associate of 3P, he will be entitled to use the words:
“In Association with 3P
Consultants – Bombay”
in all of its published
literature / advertisements / correspondence etc.
This entitlement is however
explicitly restricted to the “Recruitment / Placement Services” only, of the
concerned associate.
No associate shall, however, use
3P logo at anytime, at any place and in any manner whatsoever. At all times,
the logo is the exclusive property of 3P Consultants.
RESPONSIBILITIES
In this association, both, 3P and
an “associate” have to discharge certain responsibilities. These are listed
below.
Responsibilities of 3P
Marketing of a (Placement)
Service is, in many respects, quite similar to marketing of a “product”. 3P has
to assume the role of a Manufacturer-cum-Marketeer. In defining 3P’s
responsibilities, we will use familiar industrial / business terms.
A. MISSION / PLANS / GOALS
3P will define Corporate Mission,
prepare long-term strategic plans & prepare short-term goals (annual
targets).
Short-term goals will be based on
an annual goal-setting exercise carried out individually with each associate.
Associates will also help in
framing long-term forecasts / strategies etc.
B. MONITORING ASSOCIATE’S
PERFORMANCE
3P will monitor (budget vs actual
variance) each associate’s performance every month and give feedback.
C. POLICIES / PROCEDURES /
CONDUCT-RULES
From time-to-time 3P will release
“Rules of the Game” so that every associate knows what can be / shall be done
and what cannot be / must not be done. This will consist of:
- Designing & release of business forms
(e.g. Executive Search Request Forms / Registration Forms etc.) - Approved operating procedures
D. DATA BASE
This is the primary resource of
3P’s placement service.
3P will be responsible to
continuously:
- Create the Data Base
- Maintain / Protect the Data Base
- Destroy (periodically) obsolete data
E. PERIODIC REPORTS
3P will prepare and make
available to its associates, following periodic reports:
Monthly
- Pending ESR Summary (all India) – broken-up
associate-wise, chronologically, indicating against each request, status.
In addition to the monthly
statement of pending ESRs, on a case-to-case basis, 3P may advise a particular
Associate, immediately upon receipt of a Search Request, if, in the opinion of
3P:
- matter is very urgent
- chances of finding a suitable executive from that
particular centre/region are very bright
- Summary of Major / Important published
Advertisements (in course of time), for the territories covered by 3P and
its associates.
Quarterly
- Debit / Credit statement of accounts –
associate-wise (to concerned associate only)
- Highlights of Data Base
(No. of executives registered, Industry / Function-wise)
F. SALES PROMOTION
3P will be responsible for
designing / printing / publishing / distributing:
- Publicity literature (e.g. Introducing Ourselves)
- Business Forms (e.g. ESR / RF etc.)
For both of these, each associate
will indicate his 6-monthly requirement in advance, to permit economic
batch-size printing.
3P will also design specific
literature for holding regional conferences / seminars etc.
As and when felt necessary, 3P
will also design & publish “Institutional Advertisements” for:
- Creating Image / awareness
- Building up Data Base
G. R & D
In course of time, 3P will have a
separate department, exclusively & solely responsible for conducting:
- Company Research (everything there is to know about
a company)
- Candidate Research (as much as possible to know the
background of very senior executives registered with 3P)
H. QUALITY
3P will ensure a high standard
with respect to the quality / up-to-dateness of its Data Base.
3P will also ensure quick
response against a client’s ESR received thru an associate or received
directly.
RESPONSIBILITY OF AN ASSOCIATE
(X Y Z Centre)
The following list (of an
associate’s responsibilities) is not comprehensive but representative:
Monthly Report
Associate will send to 3P, before
10th of each month, a monthly activity report broadly consisting of:
a. Summary of ESRs received
during the month.
b. Summary of Bio-datas / RFs
received during the month
(although the bio-datas and Registration Forms received must be forwarded to 3P
as & when received)
c. Expansion plans of major
companies in the centre and their likely manpower requirements.
d. Any major event of interest.
e. Position regarding collection
of outstandings from clients.
On-Going Activity
- Maintain close contact with local industries.
Regularly meet Senior Executives – especially Personnel managers of major
companies in the centre and publicize the activities of 3P in the area of
Executive Placement.
- Actively solicit inquiries regarding middle /
senior level personnel requirement of centre-based companies.
- Obtain bio-datas / Registration Forms of middle /
senior level executives desiring change and pass-on the same to 3P for
entering in the computer Data Bank.
Since an Executive’s career
undergoes constant changes, these bio-datas will remain valid for only 2 years,
at the end of which period, these must be revalidated by obtaining fresh
bio-data / RF in case the executive continues to be “interested” in a “change”.
Unless an associate manages to
obtain a fresh bio-data (before the expiry of the 2 year validity-period), the
concerned executive will be removed from:
“The Associate’s Candidate
List” and moved to
“Un-interested General Candidate List”
- Keep track of all middle / senior level
resignations which have taken place in major companies and inform 3P
regarding the replacement plans of the concerned companies.
The associate’s attempt should be
to prevent the concerned company from resorting to advertisement and lure them
to make use of our Data Bank.
- Keep track of vacancies likely to arise within next
12/24 months as a result of expected “retirements” and induce concerned
managements to use our Data Bank to find/train a “Successor” in advance.
- To regularly obtain and pass-on to 3P, details of
large/medium industries in the centre.
- To regularly (June – Oct) obtain and send to 3P,
Xerox copies of “Employee Details” from latest unabridged Annual Reports,
for as many companies of the Centre / Region, as possible.
- To advertise in local newspapers / other media, the
placement-services of the associate.
- Wherever possible, conduct an in-depth interview of
local executives who have given their bio-data / RF and record the
findings in “Interview Assessment Sheet” and send a copy to 3P.
- To vigorously follow-up the clients regarding:
a. Fixation of interview dates
b. Outcome of interview and
client’s final decision to enable feedback to the candidates
c. Issue of Appointment-letters
to selected candidates and obtain copies of letters and pass-on to 3P
d. Collection of Demand Drafts
(in the name of 3P Consultants) for advance payments / 25% payments / 75%
payments / out-of-pocket expenses etc.
As far as possible cheques should
be avoided since it takes 10/15 days for clearance of outstanding cheques.
PROCEDURES
A. EXECUTIVE SEARCH
A.A Under Mode A (Advt. Paid
for by Client)
a. Associate will send to 3P:
- Formal Assignment-letter from client addressed to
3P
- Job-specifications & Man-specifications for
each vacancy
- Demand Draft (in favour of 3P) for the advance
b. 3P will draft an advertisement
and send it to client (through the associate) along with cost-estimate for
release in recommended media.
c. Associate will get draft /
cost-estimate approved by the client (in writing) and pass-on the
approval-letter to 3P.
d. Rest of the procedures will be
as per “Mode A – Terms & Conditions”
e. Both 3P and the concerned
associate will maintain accurate records of all “out-of-pocket” expenses
incurred, date-wise.
When the entire recruitment
exercise is over, the associate will forward to 3P a comprehensive statement of
all out-of-pocket expenses incurred along with relevant vouchers.
After adding their own statement
of expenses, 3P will forward the entire docket to the client, along with
relevant Invoice for reimbursements.
When the payment is received by
3P, 3P will send to the associate a Demand Draft for the out-of-pocket expenses
incurred by the associate.
f. For the candidates appointed,
the associate will send copies of Appointment letters to 3P along with a
filled-in format (Computation of Compensation-Package) for each candidate.
Based on this, 3P will raise
appropriate Invoice to the client (through the associate) after adjusting:
- Advances received
- Progress payment received
Upon receipt of the Demand Draft
(for the balance amount), 3P will arrange to send a D/D to the associate,
covering his share of the “Professional Fees”
g. Wherever client so desires, 3P
and associate concerned will jointly conduct preliminary interviews of
short-listed candidates.
This could be done either in
Bombay or the associate’s town depending upon:
- geographical dispersal of short-listed candidates
(entailing travel-expenses to be borne by the client – and therefore
requiring his approval)
- Interviewing facilities available at each place
- No. of candidates to be interviewed
- Convenience of 3P and the associate
Thereafter the “finalists” will
be put up for final interview by the client when and where he desires.
A.B Under Mode D (From Data
Bank)
Immediately upon receipt of an
ESR (accompanied by a formal assignment-letter from the client) through an
Associate, 3P will search the Data Bank and send to the Associate a statement
of 10/12 suitable candidates.
This online statement will
contain information obtained from Annual Reports.
Names/identity of executives
will NOT be revealed at this stage.
The associate will discuss this
statement with the client and get the client to short-list 5 executives (per
vacancy/position), whose Executive Code Nos will be communicated to 3P.
In turn, 3P will contact these
executives, indicating the position and other job-related details and inquire
about…
…their interest.
When a given number of executives
have shown interest in meeting the client, 3P will advise the client (thru the
associate) to remit the Interview Fees and indicate the details for
interviews.
Before the interview date, 3P
will arrange to send (thru the associate) detailed bio-datas (if available) of
the concerned executives to the client.
B. USE OF DATA BANK
All processing will always be
thru the computerised Data Bank of 3P – whether it be:
- any Client-request
or - any “Candidature”
(whether received directly or
thru an associate)
There shall be no bye-passing
(e.g. Against a Delhi-based
client’s request, our Delhi associate directly – and without going thru 3P –
offers for interview one of “his” candidates)
This is a cardinal rule and any
associate breaking it will immediately be “Disassociated”.
Implied in this rule is that the
moment any client-request or any candidate bio-data / RF is received by an
associate, the same shall be immediately passed-on to 3P for entering into
Data Bank
(Even if the associate were to keep a Xerox-copy for his own reference).
Sources of Data Bank Input
- Direct Registration
- From annual reports
- From Mailing List
- From Membership list
- From Directories
DATA FLOW MODEL (as per
diagram)
3P’s Candidates
↓
DATA BANK
↙
↓ ↘
Associate A Request Associate B
↓ ↓
Candidate Bio-data Candidate Bio-data
↓
3P’s Clients
Projected Data Bank Size
- Mar 92 → 30,000 executives
- Mar 93 → 60,000 executives
- Mar 94 → 2,00,000 executives
Thru an act of “by-passing”
(short-circuiting), an associate will cease to have “access” to such a massive
data-base, built-up at enormous cost and effort.
He will be depriving himself of
innumerable future opportunities of satisfying a client-request just for the
effort of getting an authorised ESR!!
B. USE OF DATA BANK
(continued)
B.1
No search will be made against an
“idle” query.
All searches will be strictly against a duly authorised ESR form sent by the
client.
B.2
Once an executive has been
“placed” with one of the clients, either directly by 3P or through one of its
associates, his (executive’s) name/record will be removed from the Data Base
for a period of 5 years.
Once an executive has been placed
in a company through our efforts and we have collected our professional fees,
it will be morally incorrect for us to place him in another company (with or
without charging professional fees).
B.3
In all cases, only 3P will
approach an executive once his name/bio-data has been entered into Data Bank
from whatever source (including the associates of 3P).
No associate shall directly
approach any executive (including those whose bio-data/RF he has obtained and
forwarded to 3P) in connection with an ESR from a client.
Any such “by-passing” or
“short-circuiting” of 3P will result in a “disassociation” of the
associate concerned.
As a corollary to this, 3P will never
directly contact a client located in an associate’s territory.
If 3P receives an ESR form at the
Head Office of a client company located in a town other than the associate’s
town but for a vacancy to be filled in the associate’s town, 3P will
immediately pass-on this information to the concerned associate.
While initiating “Search-action”,
3P will advise the client HO that the associate will follow-up the matter
locally and will keep the client / 3P informed of the progress.
Determination of “Who brought
the business?”
The crucial test will be the ESR
form which, for all practical purposes, is the purchase order placed on 3P.
Therefore, following simple rules
will apply:
a. When an ESR form has reached
3P through an associate, the associate would be entitled to his “normal”
share of Professional Fees.
b. When 3P receives an ESR form
from the client’s HO:
- Either directly due to its own effort
- Or through another associate
→ The associate will be entitled
to an “Over-riding Commission” equal to 50% of the “normal” share of
professional fees.
Example:
- Crompton-Greaves HO at Bombay sends an ESR to 3P
directly for filling the position of a Purchase Manager at Nasik.
- Hewlett-Packard (Bangalore) sends an ESR through
3P’s local associate (Bangalore) for filling a vacancy in Madras.
In both the cases, executive
selected is a “3P” executive.
“Normal” fees in both cases would
have been 20%.
But in the above instances, local associates would get 10% of the
professional fees
(i.e. 50% of the “normal”).
C. TAKING MONEY FROM CANDIDATE
As of now, we do not propose to
charge a candidate any fees – not even for the Registration Form.
However, in course of time we
propose to introduce following “charges” as far as candidates are concerned:
A. Registration Fees
(for entering a candidate’s
name/details in Data Bank)
Rs. 10/-
B. Placement-Campaign Fees
If the candidate wants 3P to
convert and send-out his bio-data to a select number of companies:
Rs. 100/- per company (to whom
bio-data is sent)
These will be announced in course
of time.
Till then, no associate shall collect any money from any candidate.
DEFINITIONS OF TERMS
CLIENT
A client can be
- an Individual
- a Proprietary firm
- a Partnership firm
- a Private Limited Company
- a Public-Limited Company,
Who has, in writing, requested
3P, (directly or thru one of its associates) for Searching / Selecting an
executive for employment with the said client.
Such employment could be
full-time / Part-time or as an Advisor/Consultant on "retainership"
basis.
Request could be by filling-in
and signing (authorising) an ESR or thru a letter. In either case, acceptance
by the client of 3P's Professional Fees/Terms - Conditions is essential to
establish his status as a "Client".
A Person / Company retains a
client - status till
a. Assignment is executed by
"Placement" (joining) of an executive in the client-company and
receipt of all Fees by 3P.
b. Assignment expires (w.r.t.
"dead-line" given by the client) before finding a suitable person.
c. Client terminates the
assignment after payment to 3P all legal dues.
d. 3P regrets its inability to
find a suitable person.
All placement requests (from
clients) will be directly in the name of 3P (even if received thru one of its
associates) and as such, all clients are clients of 3P - and not of its
associates.
A client will cease to be a
client if he breaks the contract for any reason.
CANDIDATE
A candidate is a person who
"registers" with 3P (directly or thru one of its associates) with the
purpose of finding for him a suitable employment.
Although for the time-being, we
are treating all those as candidates who have given us their bio-data, but not
their Registration Forms (especially very Senior Executives), in course of time
- and progressively - we would like to insist that every candidate must
register thru a Registration Form - and then only he will be treated as a
Candidate.
If an executive has registered
directly with 3P, he will be called a 3P - candidate.
If he registers (or sends his
bio-data) thru one of the associates, he will be treated as "XYZ
Associate" Candidate.
An associate's candidate will
cease to be so treated, unless he renews his bio-data/Registration-form thru
the same associate within 2 years of lodging with 3P his original bio-data /
Registration Form.
A failure to renew his
candidature in the aforesaid manner will revert his status to the "General
/ Open" category.
This "renewal" thru the
associate is essential because
- a lot of personal/professional details in the
bio-data / Registration will undergo changes with the passage of time
Example:-
- Age/Experience/Salary (always)
- Edu. Qualification (sometime)
- Function / Designation (sometime)
- Employer/Location (sometime)
- Health/Family data (sometime)
- he may or may not be any more interested in seeking
3P's help for a job change. A formal renewal is the only sure-way of
ascertaining his "continued" interest in seeking our Services.
- In case of situations where he has registered
himself with more than one placement agencies or undertakes a placement
campaign on his own by directly applying to 3P's clients, such a renewed
registration would be necessary in resolving disputes with clients. There
is every possibility that a client may "reject" or not show
interest in a candidate today, after an interview, but may contact him
directly 6 months later and go-ahead and appoint him (for whatever
position / vacancy, at whatever location).
If 3P (directly or thru its
associates) were responsible for "exposing" one of its candidates to
any of its clients, then, 3P should be entitled to its Professional-Fees, even
if the appointment occurs anytime within 12 months of such an exposure. We will
modify our Registration-form whereby all our candidates undertake to keep us
informed of any such offers/appointments.
TERRITORY
Each associate would be assigned
a territory. Normally this territory will be the city/town in which the
associate resides. Whether there shall be only one associate in a given Town,
or more than one associate, will be decided based upon the first-associate's
capability to adequately serve all the client-companies in that town. To begin
with however, we would like to appoint only one associate in each major town
and watch his business-performance for a year or so.
Our long-term objective is that
each associate should be able to grab
- 75% share of all placements taking place in that
town thru Placement Agencies.
OR
- 20% Share of all "advertised" vacancies
(whichever is higher)
It should be possible to achieve
these "goals" by 1997.
We will review the likely
attainment of these goals in March 1994 and decide whether we need to appoint
additional associates in any given town.
On its part 3P will not entertain
requests from anyone else for an "Associates" for that territory if
the performance of the first associate is "satisfactory" (actual
order-looking at 75% of the annual budgeted targets).
On its part, an associate will
not tie-up with or represent any other Placement Agency, but work exclusively
for 3P.
Professional-Fees/Terms –
Conditions
These will be as per chart -
enclosed. (Exhibit B)
An associate will not make any
changes in these except by prior written concurrence of 3P.
Our experience says that there
should be no concession with regard to "Advance" in case of Mode A
(Advt. Campaign).
Depending upon size / reputation
/ amount of likely business of a client, we could consider some concessions in
the area of "Interview Fees" under Mode D (Data-Bank) and Mode H
(Head-Hunting).
In the first instance – and as
per schedule of Payments – all Professional Fees are directly payable to 3P
(by D/D in case of Out-of-Bombay clients). An associate will receive his share
of the professional-fees, thru a D/D from 3P within 15 days of receipt from the
client of all dues (including Out-of-pocket expenses/interview
fees/Professional Fees etc.).
All invoices on a client will be
raised only by 3P and an associate will not raise any invoice directly.
Similarly all advances will also be received directly by 3P.
As far as "Out-of
Pocket" expenses are concerned, there is no question of a
"share" of the associate. He will be entitled to receive back from 3P
only that amount which he has himself expended on executing the assignment –
and to the extent the client "Passes/approves" the same and
reimburses 3P.
As far as possible, settlement of
all dues / recoveries will be done on a continuous basis. All settlements
should take place within 15 days of raising invoices/credit notes / debit-notes
etc.
SHARING OF EXPENSES
3P have invested heavily in
- Computer Hardware / Software
- Office Equipment
- Office Premises
3P incurs sizable
"revenue" expenditure every month on account of
- Interest / Depreciation on Capital Items
- Rentals
- A/C & Electricity charges
- Telephone / Telex / Courier charges
- Stationary / Postage
- Salaries of employees
- Insurance / Taxes
- Conveyance / Travel etc. etc.
3P’s Income / Expense diagram
is as follows:
CLIENTS → Revenue Receipts → [3P]
→ Revenue Expenditure
→ Share of PF to associates
As far as 3P’s revenue – expenses
are concerned, it is proposed to recover these as follows:
To be Recovered from
Associates (Directly)
- Pro-rata Stationary costs (RF/ESR etc)
- Pro-rata Advt. costs (Gen. Advt.)
- Annual fixed charges (for Art-work etc.)
- Shared Advt. costs (specific Territory related
Advt.)
To be Recovered from Clients
- By charging professional fees / out-of-pocket
expenses etc.
To be Recovered from
Associates (Indirectly)
- By retention of 3P’s "share" of
Professional Fees
The details of these recoveries
are described in Annex A.
SHARING OF PROFESSIONAL – FEES
These will be shared between 3P
and the concerned associate as follows:
Associate’s Share of
Professional Fees*
Under Mode D (Data Bank
Search)
Under Mode H (Head-Hunting)
|
CLIENT |
3P Candidate (registered
directly with 3P / Data Bank) |
Associate’s Candidate (via
associate) |
|
3P Client (request sent
directly to 3P) |
NIL |
30% |
|
Associate Client (ESR /
request via associate) |
40% |
70% |
* Professional Fees shall exclude
Minimum Data bank Search Fees and Out-of-Pocket expenses.
As far as Mode A (Advt.
Campaign) is concerned, an Associate will be entitled to 30% share
of the Professional Fees for an advertisement brought by him from his client.
All such advertisements will be
released in the name of 3P and response invited at the Bombay-address of 3P, to
be able to process thru the computerised Data Bank.
Actual interviews may, however,
be conducted either at Bombay or at the city-location of the Associate, as
desired by the client.
All the responses (applications)
received against such an advertisement, will however, be treated as the "Associate’s
Candidates" for a period of 2 years, and form part of
"Data Bank".
If any one of such applicant gets
placed, during next 2 years, under Mode D (Data Bank Search), the concerned
associate will be entitled to his share of Professional-fees as described above
in the tabulation.
Under any of the modes, an
associate will not be entitled to any share in the non-refundable advance
which remains un-adjusted (i.e. an advance which gets forfeited) because of
- No Suitable Candidate was found
- Client did not appoint anyone against a particular
vacancy, for any reason whatsoever
- Candidate did not join (after accepting an
appointment letter)
ANNEX A
Sharing of Expenses with
Associates
|
Nature of Expenses |
3P |
Associate |
|
1. Business Literature
(General) (e.g. Registration Form / ESR / Introductory material / folders
etc.) |
Balance |
To be borne at "per
piece" rate + fixed charge of Rs. 2000/year |
|
2. Business Literature
(Special) (for Seminar / Campaign in associate’s town) |
50% |
50% |
|
3. Advertisement (Special)
(local newspaper with associate) |
||
|
(a) Building up Database |
50% |
50% |
|
(b) Against specific vacancy of
associate’s client-company (when DB insufficient, Mode A used) |
50% |
50% |
|
Advertisement (General)
(Database building where associate names appear) |
— |
To be shared equally amongst
all concerned |
|
Seminar / Conference
(Hall, publicity, food, literature, A/V, transport etc.) |
||
|
A. In Bombay or non-represented
town |
Balance |
15% per associate name
appearing in literature |
|
B. In Associate’s Home Town |
50% |
50% (only concerned associate) |
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