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"Temp to perm" transfer fee worked example 3


Ellen works as a temp for the employment agency. She worked for the end user, on a two-week assignment, from Monday 13 April 2015 until Friday 24 April 2015. The end user wishes to appoint Ellen as a permanent employee on a starting salary of £30,000.

The contract between the employment agency and the end user provides for a transfer fee, equivalent to 15% of Ellen's first year's salary with the end user, if Ellen is employed as a permanent employee by the end user. The contract also provides for an extended period of hire of 13 weeks.