Recruitment Agency Client Contract UK | Standard Agency–Client Agreement
When a recruitment agency places candidates with a client business, a verbal understanding or email chain rarely holds up when fees go unpaid or a candidate is poached within months of placement. A recruitment agency client contract sets out the agreed terms before any introduction is made, covering fee structures, rebate periods, and payment obligations enforceable under the Late Payment of Commercial Debts Act 1998. It also protects the agency if the client attempts to re-engage a candidate directly, bypassing the agency's fee entirely. For permanent placements, the contract should address what happens if a candidate leaves within the rebate window. For temporary or contract placements, it should clarify worker status and the agency's obligations under the Conduct of Employment Agencies and Employment Businesses Regulations 2003. Generate a compliant UK recruitment agency client contract now.
Generate your Contract free →Enter your details below — see your contract update in real time
Get the full Contract
Complete AI generation with all clauses — jurisdiction-aware, ready to sign
Key clauses in a Contract
Introduction and Placement Fees
This clause defines the fee the client owes when a candidate introduced by the agency is engaged, whether on a permanent, fixed-term, or contract basis, and specifies how that fee is calculated — typically as a percentage of first-year salary. Without a clearly agreed fee structure in writing, agencies have limited recourse to recover payment under the Supply of Goods and Services Act 1982, which implies a reasonable fee only where no express terms exist.
Rebate and Replacement Terms
This clause sets out the conditions under which a fee will be partially refunded or a replacement candidate provided if the placed candidate leaves within a defined period, commonly between 4 and 12 weeks. The rebate periods and any sliding-scale repayment schedule must be explicitly agreed in advance, as courts will not imply a rebate obligation — without this clause, the agency keeps the full fee regardless of early departure.
Payment Terms and Late Payment
This clause specifies when invoices fall due — typically within 14 to 30 days of the candidate's start date — and the consequences of late payment, including statutory interest at 8% above the Bank of England base rate under the Late Payment of Commercial Debts Act 1998. Businesses are also entitled to claim fixed debt recovery costs under the same Act, so including this clause signals to clients that these rights will be enforced.
Generate your Contract in 2 minutes
AI-powered. Jurisdiction-aware. No account required for your first contract.
Generate free →Frequently asked questions
Does a recruitment agency need a signed contract before introducing candidates to a client?
Technically a contract can be formed without a signature if the client proceeds with an introduction after receiving the agency's terms, as conduct can imply acceptance under English contract law. However, relying on implied acceptance is risky — courts have found against agencies where terms were not clearly communicated before the introduction took place. Getting written agreement before any candidate details are shared gives the agency a clear, enforceable position.
What happens if a client hires a candidate directly after rejecting them through the agency?
If the agency's terms include a direct engagement clause — also called a circumvention or off-limits clause — the client will owe the full placement fee even if they wait and hire the candidate some months later. The period of restriction is a matter of contract, but 12 months from the date of introduction is common. Without this clause in the signed terms, the agency may have no enforceable claim for the fee.
How do the Conduct of Employment Agencies and Employment Businesses Regulations 2003 affect an agency–client contract?
The Conduct Regulations 2003 impose specific requirements on agencies supplying temporary workers, including the obligation to agree the terms of business before services begin and to provide certain information about the worker to the hirer. For employment businesses supplying temporary workers, the contract must also address the hirer's responsibilities around day-to-day supervision and control of the worker. Non-compliance with the Regulations can expose the agency to enforcement action by the Employment Agency Standards Inspectorate.
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.