"Temp to perm" transfer fee worked example 5
Charlotte works as a temp for the employment agency. She worked for the end user on an intermittent basis over a 10-week period from Monday 16 February 2015 until Friday 24 April 2015. The longest gap between assignments was two working weeks. The end user wishes to appoint Charlotte as a permanent employee on a starting salary of £26,000.
The contract between the employment agency and the end user provides for a transfer fee, equivalent to 22% of Charlotte's first year's salary with the end user, if Charlotte is employed as a permanent employee by the end user. The contract also provides for an extended period of hire of 16 weeks.