If you’ve been using a temporary agency or consultancy worker, you may decide you would like to employ them on a permanent basis. It’s always worth checking the terms and conditions you have with the recruitment business carefully to find out what fees may be payable in this scenario.

It’s important to remember that temporary workers are technically employed by the recruitment business, so the agency is entitled to charge a transfer fee.

HOWEVER…

There are two ways that can you can avoid paying a transfer fee:

  • A recruitment business is obliged to offer employers the chance to extend the length of the temporary hire period. If the employer chooses this option, no fee is payable upon the completion of this extended period of time (the length of the extended period must be specified in the terms and conditions and the cost of the agency worker during that period cannot be higher than they were before the extended hire period began).
  • The employer can hire a former temporary worker, free of charge, 8 weeks after the completion of the assignment OR 14 weeks from the start of the assignment (whichever is later)

    The key is to check terms and conditions (preferably at the recruitment planning stage) that you have with the agency and have the conversation early on. This will help you decide which of the options available is best for you and avoid anyone being blindsided.

For more information:

https://www.gov.uk/employment-agencies-and-businesses/fees-to-hiring-companies-transfer-fees