Employment Contract Template for Recruitment Businesses (UK 2025)
Last updated: February 2025
Why Recruitment Businesses Need a Employment Contract
Recruitment agencies have unique contractual needs driven by commission-based earnings, access to sensitive candidate databases, and intense competition for both clients and candidates. Employment contracts for recruitment consultants must carefully address commission structures including what happens to pipeline placements when someone leaves, restrictive covenants covering both client and candidate solicitation, and GDPR obligations given the volume of personal data handled daily. The historically high turnover in recruitment makes robust post-termination restrictions essential to protect business value.
Key Clauses for Recruitment
- Commission structure, calculation method, and payment timing
- Post-termination commission on pipeline placements
- Separate client and candidate non-solicitation covenants
- GDPR obligations for handling candidate personal data
Common Mistakes
- Not specifying what happens to in-progress placements and accrued commission when an employee resigns
- Failing to include separate non-solicitation covenants for both clients and candidates
Template Sections
- Commission calculation and payment schedule
- Post-termination pipeline commission clause
- Client and candidate non-solicitation restrictions
FAQ
What happens to commission when a recruitment consultant leaves?
This must be explicitly addressed in the employment contract. Common approaches include paying commission on placements where candidates started before the leave date, or a pipeline clause covering deals in active progress. Without clear contractual terms, disputes over unpaid commission are extremely common and can result in costly tribunal claims.
How restrictive can non-compete clauses be for recruitment consultants?
UK courts enforce reasonable restrictions. For recruitment, 6-month non-solicitation of specific clients and candidates personally worked with in the final 12 months is typically upheld. Blanket non-compete clauses preventing all work in recruitment are likely too broad to be enforceable. Tailor restrictions to protect legitimate business interests.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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