Recruiter compliance checklist

Terms of Business: Red Flags

The nine clauses we never let a recruiter sign without checking.

4 min read9 clauses

Your fee lives and dies by this document. Before you counter-sign a client's terms of business, run it against these nine points; most disputed fees trace back to one of them.

1

Rebate: length and what you owe back

How long is the refund window, and is it a full cash refund or a sliding scale? Aim for a replacement or a pro-rated refund on an early leaver, not 100% back.

2

Transfer or poaching fee

Are you paid if your candidate is later moved to another role, division or group company? Get it in writing.

3

Liability: capped, not open-ended

Your liability should be capped at the fee value. Refuse uncapped indemnities and open liability.

4

Fee trigger and fee basis

Is the fee earned on signed contract or start date? Is the percentage on base salary or total package? Define it.

5

Definition of "introduction" and ownership

Who owns the candidate, and for how long? A vague introduction clause is where disputed fees begin.

6

Replacement vs refund

Is it your choice or theirs? One free replacement or a sliding-scale refund, know before you sign.

7

Payment terms and late payment

Clear payment days, an interest rate on late payment and a right to chase. Silence here always costs you.

8

Termination and notice

How can the client exit and on what notice? Make sure live placements and earned fees survive termination.

9

Data, confidentiality and governing law

UK GDPR-compliant data sharing, sensible confidentiality, and English law. Read any indemnity you're accepting.

Use this before you sign

Found a red flag? It's almost always negotiable before signature and almost never after. If you'd like a second pair of eyes on a live set of terms, Batiq&Co reviews and redlines client terms of business, usually inside a day.

Book a 30-min consultation

Batiq&Co is a commercial compliance and contracts consultancy, not a law firm. General guidance, not regulated legal advice.

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A 30-minute consultation with a UK adviser. Bring a live set of client terms or a placement you are unsure about, and you will get a straight answer on it. No obligation, no jargon.