Commercial terms
What is a temp-to-perm fee?
A temp-to-perm fee is the transfer fee an employment business charges when a hirer takes on a temporary worker directly. The Conduct Regulations require that the hirer also be offered an extended period of hire instead.
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<a href="https://agencyoptix.co.uk/glossary/temp-to-perm-fee">What is a temp-to-perm fee?</a> — diagram by
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</figure>The alternative is not optional. A hirer must be given the choice between paying the fee and hiring the worker for a further extended period, after which they may take them on without charge — and terms offering only the fee are unenforceable in that respect.
There are limits on when a fee may be charged at all, tied to the time since the supply ended and since the introduction. Fees charged outside those windows are not recoverable however clearly the terms are written.
Because these terms are so often challenged, what is actually agreed and when it was agreed carries commercial weight. Terms sent after a worker has already started are the usual weak point.
What goes wrong in practice
- Terms offering a transfer fee with no extended hire alternative, making that part unenforceable.
- Fees pursued outside the permitted periods.
- Terms issued after supply started, leaving the agreement open to challenge.