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"Temp to perm" transfer fee worked example 2


Robert works as a temp for the employment agency. He started working for the end user on Monday 6 April 2015. On Monday 20 April 2015 the end user decides that it wishes to appoint Robert as a permanent employee.

The contract between the employment agency and the end user states that a transfer fee, equivalent to 15% of Robert's first year's salary with the end user, is payable. However, the contract does not provide for an extended period of hire.