Section 45 IAC 9-1-4 - Form of contracts; collection of fees; refundsAuthority: IC 6-8.1-3-3; IC 25-16-1-18; IC 25-16-2-1
Affected: IC 25-16-1
Sec. 4.
Contracts.
(a) Form of Contract. Every agency shall give to every applicant from whom a fee is to be received a contract, in which is stated all of the following: (1) The name of the agency.(2) The name and address of the employer communicating the order of the employment.(3) The date of issuing the contract.(4) The name of the applicant, the name of the employer to whom the applicant is sent, and the address where the applicant is to report for employment.(5) The amount of fee to be charged and to be collected from the applicant and the amount of fee paid or advanced by the prospective employer and by whom paid or advanced.(6) The kind of work or employment by job title.(7) The daily hours of work; the wage or salary including any additional benefits of employment.(8) Specific description of fees and refunds as provided by this regulation, and any other term, condition, or understanding agreed upon between the agency and applicant.(9) There shall be printed on the face of the contract, clearly and conspicuously, in type no smaller than 10-point bold the following: "This agency is licensed by the Department of Revenue of the State of Indiana. Administrator for Licensed Employment Agencies, Room 104B, State Office Building, Indianapolis, Indiana 46204."(10) Every such contract or receipt shall be made in original and duplicate, both to be signed by the applicant and the person acting for the employment agency. The duplicate shall be given to the applicant and the original shall be kept on file at the agency for three (3) years.(b) Fees. (1) A fee shall not be collected until an employment position has been secured (as defined herein).(2) A schedule of fees shall be printed on the face of the contract with both dollar amounts and/or percentages of gross yearly earnings and/or gross monthly earnings shown. The schedule shall be filed with Administrator for Employment Agencies.(3) The fee schedule shall be made up of a Permanent Position schedule and Temporary Position schedule.(4) If the fee is to be paid partially by the employer, this shall be clearly expressed on the face of the contract.(c) Refunds. (1) When a Permanent Position becomes a Temporary Position, the fee shall be recomputed. A refund shall be due the applicant for any difference between the amount paid to the agency that is greater than the fee for the actual Temporary Position. If the fee for the actual Temporary Position is greater than the amount already paid by the applicant, the balance shall be due the agency from the applicant.(2) It is possible for a Permanent Position to terminate within ninety (90) days and not be considered a Temporary Position for the purpose of this regulation. In such an instance the full Permanent Position fee is due to the agency. Such a termination must be verified by the employer or his agent expressing that the termination was "unilateral" in nature. A "unilateral" termination shall be one where an applicant voluntarily leaves a position or is terminated for cause by the employer. Activities considered by the Department of Revenue as sufficient for termination for cause include, but are not limited to, intoxication, dishonesty, unexcused tardiness, unexcused absenteeism, or insubordination.(3) When a contract provides for a refund when a position is terminated through no fault of the applicant, a refund is due and/or a recomputation to a Temporary Position fee is required unless a "unilateral termination" is verified by the employer or his agent.(4) All refunds shall be paid and at no time shall be shown as a credit to the account of the applicant. (d) General Guidelines. (1) Any statement on the face of the contract indicating that a deduction for income tax purposes is available for fees paid by the applicant for an employment position, must not state that such a deduction is available for Indiana State Income Tax purposes.(2) No contract may contain the statement "Application for Employment," or any statement to that effect.Department of State Revenue; Rule 4; filed Mar 3, 1975, 2:10 pm: Rules and Regs. 1976, p. 417