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The Basics of the Temp-to-Perm Fee Charged by Recruitment Agencies

Category: Strategies

Hiring your workers through a recruitment agency is the best way to save time and money. There are two categories of workers you can get from the agency, temporary and permanent employees. There are, however, instances where you can turn a temporary employee into a permanent one.

In these instances, recruitment agencies in Ipswich might charge you a conversion fee known as the temp-to-perm fee. This cost should be in the contract for it to be effective. Here is some basic information to help you understand this fee.

Permanent and Temporary Employees Contracts

The law requires that all temporary workers working for more than 12 weeks receive the same benefits and remuneration as permanent employees. If your assignment is going to last for more than 12 weeks you can opt to change the worker before the 12 weeks or permanently employ them. In most cases, employing the worker as a permanent employee is more cost-efficient than hiring a new employee.

Calculating Conversion Fees

There are two options for calculating the temp-to-perm conversion fees. One option is to base the cost on a specific percentage of the standard fee charged for the placement. The other option is to calculate the rate based on a percentage of the hours the employee has worked during the temporary contract. Ensure the calculation is also clear in your initial contract.

Conversion Fee for Rehiring

You can pay a conversion fee when you hire the same worker twice to work on the same assignment. This typically happens if the temporary worker finishes the first task and is rehired. The fee is only applicable if the break between assignments is not more than 14 weeks.

Different terms and conditions apply when charging the conversion fee. To protect your interests, ensure you understand the terms of your contract. This will save you from unnecessary court battles.