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Recruiter Terms of Business

Non-Solicitation Clause Template UK | Recruitment Contract

Recruitment agencies and headhunters face a costly threat when clients bypass them to hire candidates directly, or when consultants leave and poach their entire client base. A robust non-solicitation clause prevents exactly this, protecting the commercial relationships and candidate pipelines you have invested heavily in building. Without enforceable protections, you have little legal recourse when a placed candidate is rehired directly or a departing employee takes your top clients with them. Under UK common law, non-solicitation clauses are enforceable provided they are reasonable in scope, duration, and geographic reach — courts will strike down anything deemed an unlawful restraint of trade. The Contracts (Rights of Third Parties) Act 1999 may also affect how these obligations bind connected parties. Generate a professionally drafted non-solicitation clause template tailored to UK recruitment contracts now.

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Key clauses in a Recruiter Terms of Business

1

Direct Engagement Prohibition

This clause prevents the client from directly engaging any candidate introduced by the recruiter without paying the agreed fee, typically for a defined period of 12 to 24 months post-introduction. Under UK common law, this is enforceable as a liquidated damages provision provided the fee reflects a genuine pre-estimate of loss rather than a penalty, as established in Cavendish Square Holding BV v Makdessi [2015] UKSC 67.

2

Post-Termination Non-Solicitation

This clause restricts departing employees or contractors from soliciting the agency's clients, candidates, or colleagues for a specified period after their engagement ends, typically six to twelve months. UK courts will only enforce such restrictions if they are proportionate and protect a legitimate business interest, such as confidential client relationships or candidate databases, as confirmed under the restraint of trade doctrine.

3

Candidate Re-Introduction Fee

This clause specifies a clearly defined re-engagement fee payable if a client re-hires a previously introduced candidate outside the original placement, closing the loophole of clients waiting out a short restriction period before rehiring directly. Drafting this as a contractual debt rather than a penalty improves enforceability and allows the agency to pursue recovery under the standard UK civil debt process without needing to prove loss.

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Frequently asked questions

How long can a non-solicitation clause last in a UK recruitment contract?

UK courts assess non-solicitation duration on a case-by-case basis, but periods of six to twenty-four months are generally considered reasonable depending on the seniority of the role and the nature of the relationship being protected. Clauses exceeding two years are frequently challenged and struck down as an unlawful restraint of trade under common law. Keeping the duration proportionate to your legitimate business interest is the safest approach.

Can a recruitment agency enforce a non-solicitation clause against a limited company contractor?

Yes, a non-solicitation clause can bind a limited company contractor if it is clearly drafted into the contract between the agency and the contractor's personal service company. The Contracts (Rights of Third Parties) Act 1999 does not automatically extend obligations to third parties, so the clause must expressly name or describe the restricted parties. Agencies should ensure the individual director also provides a personal undertaking where maximum protection is required.

What happens if a client directly hires a candidate without paying the recruiter's fee?

If a valid non-solicitation or direct engagement clause is in place, the recruitment agency can pursue the unpaid fee as a contractual debt through UK civil courts, typically the County Court or High Court depending on the sum involved. The agency should also check whether its standard terms were properly incorporated into the client agreement, as unsigned or poorly communicated terms may not be binding. Late payment interest may also be claimed under the Late Payment of Commercial Debts (Interest) Act 1998 if the fee remains unpaid after the agreed credit period.

The information on this page is for general informational purposes only and does not constitute legal advice. Contracto generates AI-assisted contract templates — they are not a substitute for advice from a qualified solicitor. For high-value or complex engagements, always seek independent legal review.