Terms of Use for Artificial Intelligence Features

Please read these Terms of Use for Artificial Intelligence Features (the “AI Terms”) carefully. These apply to any use of the AI Features (as defined below) offered by Les Technologies Folks RH Inc. (“Folks”) to the Client as part of the Services. The AI Terms are incorporated into the SaaS Subscription and Commercial Terms of Use Agreement (the “Agreement”) and must be read in conjunction with it and with Folks’ Privacy Policy. In the event of any conflict between the AI Terms and the Agreement, these AI Terms shall prevail specifically with regard to the use of the AI Features.

The Client must accept the AI Terms before activating any AI Feature. Activation of an AI Feature is carried out by an authorized Person of the Client acting as a Super User or having an equivalent Administrative Role, who declares and warrants, at the time of Activation, that they have the required power and authority to accept these AI Terms on behalf of the Client and to bind the Client. By activating an AI Feature, the Client acknowledges having read these AI Terms and agrees to be bound by them with respect to all of its Authorized Users. If the Client does not agree with the AI Terms, their only alternative is not to activate or to deactivate the AI Features.

 

Article 1 – Definitions

1.1 Capitalized terms used in these AI Terms that are not otherwise defined below shall have the meaning given to them in the Agreement or the Privacy Policy, as applicable.

1.2 For the purposes of these AI Terms, the following terms shall have the meanings set forth below:

• Activation means the action taken by a Super User or any other authorized Person with an equivalent Administrative Role within the Client’s account, by which an AI Feature is activated for the entire Client account and made available to all Authorized Users of that account, subject to the Roles and Permissions configured by the Client for each of its Authorized Users.
• Input Data means any Client Data transmitted to an AI Feature to be processed by it, including but not limited to résumés, cover letters, candidate profiles, job descriptions, interview notes, and any other content provided by the Client or its Authorized Users.
• Output Data means the result generated by an AI Feature from Input Data, including but not limited to candidate summaries, scores or matches, text suggestions, and any other automatically produced content.
• AI Feature means any functionality of the Service Software that relies, in whole or in part, on artificial intelligence techniques, including but not limited to machine learning, large language models (LLM), natural language processing, and any other algorithmic process for generating, classifying, analyzing, recommending, or summarizing content. The list of available AI Features is described in Section 3.1 and may be updated from time to time.
• AI Provider means any third party providing Folks with artificial intelligence services or models used in connection with the AI Features, which are considered Subcontractors within the meaning of the Agreement.
• Hallucination means Output Data generated by an AI Feature that appears plausible but is inaccurate, fabricated, incomplete, or unverifiable.
• Human Supervision means the examination, validation, or review by a physical person, exercising independent judgment, of any Output Data before a decision is made by the Client concerning an Employee, a candidate, or any other person.

 

Article 2 – Purpose and Scope

2.1 Purpose. These AI Terms govern the Client’s use of the AI Features made available by Folks as part of the Services. They specify the respective commitments of Folks and the Client concerning the processing of Client Data by the AI Features, and complement the obligations set out in the Agreement and the Privacy Policy.

2.2 Optional Nature. The use of AI Features is optional. The Client may choose to activate or deactivate each AI Feature at any time, in accordance with Section 8, without prejudice to its right to use the other components of the Service Software.

2.3 Relationship with the Agreement. All provisions of the Agreement continue to apply to the use of the AI Features, including those relating to authorizations and restrictions (Article 3 of the Agreement), management of Personal Information (Article 4 of the Agreement), intellectual property (Article 6 of the Agreement), data (Article 7 of the Agreement), confidentiality (Article 8 of the Agreement), representations and warranties (Article 10 of the Agreement), indemnities (Article 11 of the Agreement), and limitations of liability (Article 12 of the Agreement).

 

Article 3 – Offered AI Features

3.1 List of AI Features. The AI Features currently offered by Folks as part of the Services are described in the table below. Folks may, from time to time, add new AI Features, or modify or withdraw existing AI Features, in accordance with the terms of the Agreement and these AI Terms.

AI Feature	Service	Purpose	Input Data Processed
CV Analysis and Summary	ATS	Extract key information from a résumé and produce a structured summary	Résumés, cover letters
Candidate / Job Matching	ATS	Assess the degree of correspondence between a candidate’s profile and a job	Résumés, cover letters, description and required elements related to the job
Writing Assistance	ATS	Write descriptions, job postings, and candidate evaluation criteria	Information associated with the job (Job Title, Required Skills, Required Education, Required Languages, and regions)

3.2 Limitations of AI Features. The Client acknowledges that the AI Features are assistance tools and not decision-making tools. The Output Data produced by the AI Features is provided for informational purposes only and must under no circumstances constitute the exclusive basis for a decision made by the Client concerning an Employee, a candidate, or any other person. Folks disclaims all liability for the interpretation, use, or reliance placed by the Client or its Authorized Users on the Output Data.

 

Article 4 – Data Processing by AI Features

4.1 Data Processed. When an AI Feature is activated, the applicable Input Data is transmitted, processed, and analyzed by the AI Feature for the purpose of generating the corresponding Output Data. Processing may involve the transmission of Input Data to an AI Provider acting as a Subcontractor of Folks.

4.2 Non-Use for Training Purposes. Folks uses commercially reasonable efforts to ensure that Client Data processed by the AI Features is not used by Folks or its AI Providers for the purpose of training, retraining, improving, or customizing artificial intelligence models accessible to other clients or third parties. However, Folks cannot be held responsible for a breach by an AI Provider of its own contractual obligations, subject to Folks’ obligation to act diligently in the selection and monitoring of its AI Providers.

4.3 Data Retention by AI Providers. Folks prioritizes AI Providers that offer limited retention periods for Input Data and Output Data. The retention duration by each AI Provider is specified in the documentation maintained by Folks and available upon written request to Folks’ Privacy Officer.

4.4 Hosting and Transfer Outside Quebec. The Client acknowledges that some AI Providers may process Input Data and generate Output Data on infrastructures located outside Quebec, notably in other Canadian provinces or the United States. Folks evaluates the AI Providers in accordance with the requirements of the Act respecting the protection of personal information in the private sector, particularly regarding the equivalence of the applicable protection framework. By activating an AI Feature, the Client consents to such transfer and hosting, and undertakes to inform its Employees and candidates of this transfer in accordance with Section 5.

4.5 Security. Folks applies the security measures provided for in Section 4.1 of the Agreement and the Privacy Policy to the Input Data and Output Data processed by the AI Features, particularly concerning encryption in transit and at rest, access control, and incident management.

 

Article 5 – Client Obligations and Responsibilities

5.1 Informing Data Subjects. The Client is responsible for informing its Employees, candidates, and any other person whose Personal Information is likely to be processed by an AI Feature about the use of these features, in accordance with applicable Laws, including the Act respecting the protection of personal information in the private sector. This information must minimally specify:

• the AI Features used by the Client;
• the purposes of the processing;
• the categories of Personal Information processed;
• the fact that automated processing is used, where applicable;
• the applicable rights, particularly the right to submit observations to a physical person when a decision is based exclusively on automated processing.

5.2 Human Supervision. The Client undertakes to exercise Human Supervision over any Output Data used to make, or to support the making of, a decision concerning an Employee, a candidate, or any other person, including any decision relating to hiring, refusal to hire, advancement, evaluation, remuneration, or termination of employment. The Client acknowledges that no decision should be based exclusively on Output Data without human intervention.

5.3 Automated Decisions. The Client acknowledges that Section 5.2 requires it to exercise Human Supervision. Should the Client nevertheless decide to base a decision exclusively on automated processing involving an AI Feature, the Client is solely responsible for complying with the obligations provided by applicable Laws, including:

• informing the data subject that the decision is based exclusively on automated processing;
• allowing the data subject to submit observations to a physical person capable of reviewing the decision;
• providing the data subject, upon request, with the information required by applicable Laws regarding the Personal Information used, the reasons, and the main factors leading to the decision.

5.4 Non-Discrimination and Equity. The Client undertakes not to use the AI Features in a manner that would contravene applicable Laws regarding human rights, equality, non-discrimination, or employment equity, including the Charter of Human Rights and Freedoms (Quebec) and the Canadian Human Rights Act. The Client remains solely responsible for compliance with these Laws within its recruitment and human resources management processes.

5.5 Input Data. The Client undertakes not to submit to the AI Features:

• Personal Information it is not entitled to process under applicable Laws;
• sensitive information whose processing by an AI Feature is not necessary for the intended purpose;
• unlawful, defamatory, infringing content, or content that violates a third party’s intellectual property rights.

5.6 Validation of Output Data. The Client acknowledges that Output Data may contain Hallucinations, inaccuracies, biases, or omissions. The Client undertakes to validate the Output Data before relying on it, and not to consider it as accurate, complete, or error-free without appropriate verification. Folks cannot be held liable for any damage whatsoever resulting from the Client’s reliance on Output Data that has not been adequately validated.

5.7 Information and Training of Authorized Users. The Client acknowledges that the Activation of an AI Feature by an authorized Person binds the Client with respect to all of its Authorized Users. The Client undertakes to:

• inform its Authorized Users of the Activation of the AI Features and their main characteristics;
• ensure that its Authorized Users are aware of the limitations of the AI Features, the obligations of Human Supervision, and the risks of Hallucinations and bias;
• adequately configure the Roles and Permissions of its Authorized Users to limit, where applicable, access to the AI Features only to authorized Persons who need them for the performance of their duties.

The Client remains solely responsible for any use of the AI Features by its Authorized Users, in accordance with Section 4.3 of the Agreement.

 

Article 6 – Folks’ Obligations and Commitments

6.1 Diligence in the Choice of AI Providers. Folks undertakes to select its AI Providers diligently, taking into account, in particular, the quality of their practices regarding security, personal information protection, and artificial intelligence governance.

6.2 Contractual Framework for AI Providers. Folks enters into written agreements with each AI Provider to govern the processing of Client Data, in accordance with Article 4 of the Agreement and the Privacy Policy.

6.3 Bias Mitigation Measures. Folks implements commercially reasonable efforts to limit the biases likely to affect the Output Data produced by the AI Features. However, Folks acknowledges that artificial intelligence systems may, despite these efforts, exhibit residual biases and that complete elimination of biases cannot be guaranteed.

6.4 Transparency. Folks provides, in these AI Terms and in the documentation accessible to the Client, reasonable information on the general operation of the AI Features, the AI Providers used, and the main categories of data processed. Folks will respond within a reasonable timeframe to any reasonable request for complementary information formulated by the Client.

6.5 Notification of Important Changes. Folks will notify the Client of any important change to the AI Features, the list of AI Providers, or the terms of processing of Client Data by the AI Features, in accordance with Section 9.

6.6 Incident Response Plan. Any incident affecting the confidentiality, integrity, or availability of Client Data processed by the AI Features is managed in accordance with the cyber-attack response plan provided for in Section 4.2 of the Agreement.

 

Article 7 – Intellectual Property and Use of Output Data

7.1 Ownership of Input Data. Input Data remains the property of the Client or the Employees concerned, in accordance with Section 7.1 of the Agreement.

7.2 Output Data. Subject to the rights of third parties and applicable Laws, Output Data generated from the Client’s Input Data is considered, between the Parties, as part of the Client Data and is subject to the same terms as those provided in Article 7 of the Agreement. However, the Client acknowledges that Output Data may not be protectable by copyright or other Intellectual Property Rights under applicable Laws.

7.3 Aggregated Data. Folks may use Aggregated Data derived from the use of the AI Features, in accordance with Section 7.2 of the Agreement, provided that such Aggregated Data remains anonymized and cannot allow the identification of the Client, its Employees, or its candidates.

 

Article 8 – Activation and Deactivation

8.1 Activation. An AI Feature is activated following the acceptance of these AI Terms by a Super User or any other authorized Person with an equivalent Administrative Role within the Client’s account. The Activation:

• is performed in the name and on behalf of the Client, the authorized Person performing the Activation declaring and warranting that they have the required authority for this purpose;
• binds the Client with respect to all of its Authorized Users;
• makes the AI Feature available to all Authorized Users of the account, subject to the Roles and Permissions configured by the Client.

The Activation is logged by Folks, notably concerning the identity of the authorized Person who performed the Activation, the date and time of the Activation, the version of the AI Terms accepted, and the AI Feature concerned. This information may be communicated to the Client upon reasonable request, for verification or audit purposes.

8.2 Deactivation. The Client may deactivate an AI Feature at any time from the Service Software administration interface, through a Super User or any other authorized Person with an equivalent Administrative Role, or by contacting Folks. Deactivation takes effect for all Authorized Users of the Client’s account within a reasonable period following the request.

8.3 Effect of Deactivation. Following the deactivation of an AI Feature:

• the AI Feature ceases to be accessible to the Client’s Authorized Users;
• the previously generated Output Data remains accessible to the Client under the conditions provided in the Agreement;
• the terms of retention and deletion of Client Data provided for in Section 7.3 of the Agreement continue to apply.

 

Article 9 – Amendments to these AI Terms

9.1 Amendments. Folks reserves the right to amend these AI Terms from time to time, particularly to reflect the evolution of AI Features, AI Providers, the applicable regulatory framework, or industry practices.

9.2 Notification. Folks will bring any substantial change to these AI Terms to the Client’s attention with reasonable notice, and at minimum, fifteen (15) days before the change takes effect, by email addressed to the Super User, by notice in the Service Software, or by any other means deemed appropriate by Folks. Minor changes, particularly those of an editorial or clarifying nature, may be made without notice and will be reflected by updating the effective date indicated at the top of these AI Terms.

9.3 Acceptance of Amendments. Continued use of an AI Feature after a modified version of the AI Terms takes effect constitutes acceptance thereof by the Client. If the Client disagrees with a substantial amendment, their only alternative is to deactivate the concerned AI Features in accordance with Section 8.2.

9.4 Previous Versions. Folks will make previous versions of these AI Terms available for consultation and audit purposes.

 

Article 10 – Representations, Warranties, and Limitations

10.1 Additional Client Representations. In addition to the representations and warranties provided in Section 10.3 of the Agreement, the Client declares and warrants that it:

• has obtained the required consents from its Employees and candidates, where applicable, for the processing of their Personal Information by the AI Features;
• will inform the data subjects in accordance with Section 5.1;
• will exercise the Human Supervision provided for in Section 5.2;
• will use the AI Features in compliance with applicable Laws, particularly regarding human rights and the protection of personal information.

10.2 Exclusion of Warranties. Without limiting the scope of Section 10.4 of the Agreement, the Client expressly acknowledges that the AI Features are provided “as is” and “as available”, without warranty of any kind, express or implied, and that Folks does not warrant that the Output Data will be accurate, complete, free from bias, free from Hallucinations, fit for a particular purpose, or that the AI Features will be available without interruption or error-free. The Client acknowledges that artificial intelligence systems inherently have limitations and that any reliance placed on the Output Data is at the Client’s sole risk.

10.3 Limitation of Liability. The limitations of liability provided in Article 12 of the Agreement apply fully to the use of the AI Features. Without limiting the scope of the foregoing, Folks shall not be liable for: (a) decisions made by the Client based on Output Data, nor the consequences of such decisions with respect to an Employee, a candidate, or any other person; (b) any indirect, incidental, or punitive damages related to the use of the AI Features, including loss of profits, revenue, data, or business opportunities; or (c) any claim based on the quality, accuracy, or reliability of the Output Data.

10.4 Indemnification. The indemnification obligations provided in Article 11 of the Agreement apply to the use of the AI Features. The Client shall indemnify and hold harmless Folks, its officers, directors, employees, and agents from any Loss arising from: (a) a breach by the Client of its obligations set out in Article 5; (b) the use of the AI Features by the Client or its Authorized Users in violation of these AI Terms, the Agreement, or applicable Laws; or (c) any decision made by the Client based on Output Data.

 

Article 11 – Regulatory Compliance

11.1 Applicable Legal Framework. These AI Terms are governed by and construed in accordance with applicable Laws, including:

• the Act respecting the protection of personal information in the private sector (Quebec);
• the Personal Information Protection and Electronic Documents Act (PIPEDA, federal);
• the Charter of Human Rights and Freedoms (Quebec);
• the Canadian Human Rights Act;
• any other Law applicable to the Client or Folks regarding artificial intelligence, as they come into force.

11.2 Evolution of the Regulatory Framework. Folks will monitor the evolution of the regulatory framework applicable to artificial intelligence, particularly in Canada, and will make any necessary amendments to these AI Terms in accordance with Section 9.

 

Article 12 – Contacting Folks

Any question, comment, or request related to these AI Terms can be addressed to Folks’ Privacy Officer at the following coordinates:

Privacy Officer
privacy@folkshr.com
1035, avenue Wilfrid-Pelletier, Suite 440, G1W 0C5 Québec, QC, Canada

Requests will be processed as quickly as possible.