Terms of Business Template for Recruitment Businesses (UK 2025)

Why Recruitment Businesses Need a Terms of Business

Recruitment terms of business define the standard conditions on which the agency introduces candidates to clients, forming the contractual basis for fee claims. These are the most commercially critical document for any recruitment agency because they establish when a fee is owed, how it is calculated, and the conditions for rebates and refunds. The terms must be sent to clients before or at the time of any candidate introduction to be enforceable, and must clearly define what constitutes an introduction.

Key Clauses for Recruitment

• Introduction definition covering all methods of candidate presentation
• Fee calculation, invoicing triggers, and payment terms
• Rebate scale and refund conditions for early leavers
• Extended introduction period and anti-circumvention provisions

Common Mistakes

• Not sending terms of business to clients before the first candidate introduction, potentially making the terms unenforceable
• Defining introduction too narrowly, allowing clients to circumvent fees by hiring candidates through alternative channels

Template Sections

• Introduction definition and validity period
• Fee schedule and rebate provisions
• Anti-circumvention and extended hiring provisions