Recruitment terms of business template
Recruitment terms of business are the agreement between a recruitment agency and a client that sets out how the agency introduces or supplies candidates and what the client pays. They cover permanent introductions and temporary supply, the fees, rebates, and what happens if the client engages a candidate directly. An agency sends them to every new client before supplying anyone.
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What changes each time
27 values. Everything else is your wording, kept exactly.
The agency
- Agency's legal name
- Agency's trading name
- Agency's company number
- Registered office or business address
- Trade body
The client
- Client's full legal name
- Client's registered office or address
Definitions
- Period of introduction
- Items counted as remuneration
- Hours or days counted where no salary is agreed
- Days to pay an invoice
Permanent fees
- Percentage fee
- Minimum fee
- Fixed fee per candidate
- Fixed-term fee or percentage
- Cancellation fee
Rebate
- Weeks to find a replacement
- Refund at each stage
- Days to notify in writing
Temporary supply
- Charge rate for each role
- Transfer fee
- Extended period of hire
- Number of weeks of notice
Liability and signing
- Liability cap
- Name of signatory
- Position
- Date
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“The agency is a company registered in England and Wales, or has a business address.”
The document carries the wording for whichever applies, and the other wording is left out.
- Only when…
“Include the trade body membership statement only when the agency is a member of a trade body.”
When this applies, the trade body membership statement is included; when it does not, it is left out and the rest of the document is unchanged.
- One of several wordings
“Remuneration excludes, or includes, items such as bonuses.”
The document carries the wording for whichever applies, and the other wording is left out.
- Only when…
“Include the vulnerable people checks only when the role involves working with, caring for or attending vulnerable people.”
When this applies, the vulnerable people checks is included; when it does not, it is left out and the rest of the document is unchanged.
- One of several wordings
“VAT is added to the fees, or the agency is not VAT registered.”
The document carries the wording for whichever applies, and the other wording is left out.
- One of several wordings
“Liability is capped at the fees paid in the year, or a stated amount.”
The document carries the wording for whichever applies, and the other wording is left out.
- One of several wordings
“A percentage fee or a fixed fee.”
The document carries the wording for whichever applies, and the other wording is left out.
- Only when…
“Include a minimum fee only when there is one.”
When this applies, a minimum fee is included; when it does not, it is left out and the rest of the document is unchanged.
- One of several wordings
“The fee for a fixed-term role is based on remuneration for the term, or on a percentage of it.”
The document carries the wording for whichever applies, and the other wording is left out.
- One of several wordings
“Cancelling after acceptance costs a cancellation fee, or nothing.”
The document carries the wording for whichever applies, and the other wording is left out.
- Only when…
“Include the rebate section only when the agency offers a rebate.”
When this applies, the rebate section is included; when it does not, it is left out and the rest of the document is unchanged.
- One of several wordings
“The rebate is a refund, or a replacement candidate first, then a refund.”
The document carries the wording for whichever applies, and the other wording is left out.
- Once for each item
“One row for each band of the rebate.”
The table has one row for each, so it grows or shrinks to match.
- Only when…
“Include the temporary supply terms only when the agency supplies temporary workers.”
When this applies, the temporary supply terms is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include charges after 12 weeks only when charges change after 12 weeks.”
When this applies, charges after 12 weeks is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the umbrella company paragraph only when any temporary worker may be paid through an umbrella company.”
When this applies, the umbrella company paragraph is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the off-payroll working paragraph only when limited company contractors are supplied.”
When this applies, the off-payroll working paragraph is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the temporary worker charge rates only when the agency supplies temporary workers.”
When this applies, the temporary worker charge rates is included; when it does not, it is left out and the rest of the document is unchanged.
- Once for each item
“One row for each other fee, such as advertising costs.”
The table has one row for each, so it grows or shrinks to match.
Questions people ask
What are recruitment terms of business?
They are the contract between a recruitment agency and a client setting out how the agency's service works, what it charges and when. Agencies normally agree them before introducing a candidate.
When is a recruitment fee due?
When the client engages a candidate the agency introduced, within the period of introduction set in the terms, for example six months. The terms also usually cover what happens if the candidate is engaged through another route.
What is a transfer fee?
It is what a client pays if it takes on a temporary worker the agency supplied, and so avoids paying the agency's charges. The Conduct Regulations limit when and how it can be charged, so the terms set an extended period of hire.
What is a rebate?
It is a refund of part of the fee if the placed candidate leaves early. Agencies often offer a scale that reduces over time, or offer a replacement first.
Do the terms have to be signed?
Signing is best, because it shows the client agreed. Acceptance can also be shown by the client using the agency's service after receiving the terms, but a signed copy is easier to rely on.
Use this template
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