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"Temp to perm" transfer fee worked example 7


Tarek works as a temp for the employment agency. He worked for the end user on an eight-week assignment from Monday 23 February 2015 until Friday 17 April 2015. The end user introduced Tarek to one of its associated companies (the third party). The third party now wishes to appoint Tarek as a permanent employee on a starting salary of £15,000.

The contract between the employment agency and the end user provides for a transfer fee, equivalent to 15% of Tarek's first year's salary with the end user, if Tarek is employed as a permanent employee by the end user. The transfer fee is also payable by the end user if Tarek is employed by a third party.