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Staff augmentation contract template

A draft staff augmentation agreement with contract-to-hire conversion terms built in: your rates, overtime, timesheet approval, payment terms and conversion fee. Download as an editable Word document or a PDF. No signup, and nothing you type leaves your browser.

This produces a draft, not legal advice.

StaffingLeads is not a law firm, and the document has not been reviewed for your state, your sector or your client. Have a qualified attorney review it before you sign or send it.

The document you download carries no such notice on it — it is yours to send — so the review has to happen before you use it.

Which agreement

Nothing you type leaves your browser. There is no signup and no server involved — the document is assembled on this page.

Your agency
Logo — optionalSits above the title. Embedded in the file, so it travels with the document — it never reaches us.
The client
Assignment terms
Payment and general terms

3 still blank — your agency’s legal name, the client’s legal name, a governing state. You can generate anyway; blanks appear as highlighted placeholders you can fill in afterwards.

What it covers

The clauses in a staff augmentation agreement

Services and assignments

The agency supplies workers to the client for defined assignments. The workers stay on the agency’s payroll; the client directs their day-to-day work.

Charges and overtime

The hourly or daily rate the client pays for each worker, and the multiplier for overtime hours. Rates per assignment usually sit in a schedule or confirmation rather than in the main agreement.

Timesheets

Who approves hours, how many business days the client has to approve them, and what happens if they do not. Slow approval is slow invoicing, which is slow payment.

Invoicing and payment

How often you invoice (weekly is common for contract work) and how many days the client has to pay. This clause decides how much payroll you carry.

Employment status and payroll

The agency is the employer: it pays the worker, withholds taxes and carries workers’ compensation. Stating this plainly is what separates staff augmentation from the client hiring the person directly.

Conversion (contract-to-hire)

What the client pays to hire an assigned worker permanently: a percentage of salary, a flat fee, or a sliding scale that reaches zero after a set period on assignment.

Direct-hire restriction

How long after an assignment ends the client cannot hire the worker without paying the conversion fee. Without it, a client can end the assignment on Friday and hire the person on Monday.

Ending an assignment

How many days’ notice either side gives to end an assignment, separate from ending the whole agreement.

Contract-to-hire

The conversion clause decides what you earn at the end

In a contract-to-hire arrangement you earn your margin on every hour the worker is on assignment, and then the client may hire them. The conversion clause is what stops that hire from costing you the relationship for nothing.

The generator offers the four structures agencies use:

  • Sliding scale, free after a period. The fee falls the longer the worker has been on assignment and reaches zero at a point you choose. Easy for clients to accept, because the longer they have paid your rate, the less the conversion costs.
  • Percentage of salary. Priced like a permanent placement. Fair when the worker converts early, before you have earned much margin.
  • Flat fee. Simple to quote and to invoice.
  • No standing fee. Agreed case by case. Flexible, but it leaves the number to be negotiated at the moment you have the least leverage.

Pair it with the direct-hire restriction: the months after an assignment ends during which the client still owes the fee if it hires the worker. Without that window, the conversion clause is easy to walk around.

Pricing the assignment itself? The markup and bill rate calculator turns a pay rate into the rate to charge, and the cash flow calculator shows how much payroll your payment terms make you carry.

Other agreements

Placing permanent hires too?

The staffing agency contract generator writes contingent permanent placement and retained search agreements as well, with your own fee, guarantee and ownership terms. For what each clause protects you from, read the client agreement, clause by clause.

Common questions

Staff augmentation and contract-to-hire agreements

What is a staff augmentation agreement?+

A contract between a staffing agency and a client under which the agency supplies workers who join the client’s team for a period while remaining the agency’s employees. The agency handles payroll, taxes and insurance; the client directs the work and pays the agency an hourly or daily rate for each worker. In the staffing industry the same document is often called a staffing services agreement or a contract staffing agreement.

What is the difference between staff augmentation and contract-to-hire?+

Staff augmentation is the arrangement: workers on the agency’s payroll filling a gap in the client’s team. Contract-to-hire is staff augmentation where both sides expect the client may hire the worker permanently later. Contractually, the difference is the conversion clause, which sets what the client pays to make that hire and when it becomes free.

What is a contract-to-hire conversion fee?+

The fee a client pays the agency to hire an assigned worker as their own employee. Common structures are a percentage of the worker’s first-year salary, a flat fee, or a sliding scale that falls the longer the worker has been on assignment and reaches zero after an agreed period. The sliding scale is popular because the agency has already earned its margin on every hour worked before conversion.

Is staff augmentation the same as outsourcing?+

No. In staff augmentation the client manages the work and the workers join its team; the agency is responsible for employing them, not for the result. In outsourcing (or a statement-of-work engagement) the provider is responsible for delivering an outcome and manages its own people. The contracts differ accordingly, so make sure the document matches how the work will actually run.

Is this template free, and can I use it without a lawyer?+

It is free, with no signup, no email and no watermark, and nothing you type leaves your browser. We would still have an attorney review it once before you use it: StaffingLeads is not a law firm, and staffing and employment rules vary by state. Starting from a complete draft makes that review far cheaper than drafting from a blank page.

Should staff augmentation and permanent placement use the same contract?+

Usually not. Permanent placement agreements are about introductions, placement fees and guarantees; staff augmentation agreements are about rates, timesheets, payroll and conversion. If you do both with the same client, you generally want both documents. The general generator writes the permanent placement and retained search versions.

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