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"Temp to perm" transfer fee worked example 6


Stephanie works as a temp for the employment agency. She worked for the end user on an intermittent basis over a 20-week period from Monday 15 December 2014 until Friday 1 May 2015. The longest gap between assignments was just over eight weeks, from Saturday 24 January 2015 until Sunday 22 March 2015. The end user wishes to appoint Stephanie as a permanent employee on a starting salary of £40,000.

The contract between the employment agency and the end user provides for a transfer fee, equivalent to 25% of Stephanie's first year's salary with the end user, if Stephanie is employed as a permanent employee by the end user. The contract also provides for an extended period of hire of 39 weeks.