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"Temp to perm" transfer fee worked example 4


Ben works as a temp for the employment agency. He worked for the end user on a 20-week assignment, from Monday 15 December 2014 until Friday 1 May 2015. The end user wishes to appoint Ben as a permanent employee on a starting salary of £24,000.

The contract between the employment agency and the end user provides for a transfer fee, equivalent to 18% of Ben's first year's salary with the end user, if Ben is employed as a permanent employee by the end user. The contract also provides for an extended period of hire of 20 weeks.