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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I am working through an employment agency for a local Housing

Customer Question

I am working through an employment agency for a local Housing Association. My contract is for 6 months, and ends on 23/12/14. The position that I am covering will be made into a permanent post. However, even though I am fully qualified the agency state that if I get the position they are entitled to a Finders Fee, which will be around £5000 which the company cannot afford to pay. I have spoken to the agency and they are refusing to remove this fee, can this be legal? as they are stopping me from securing a permanent position. There is nothing in my contract to advise of a finders fees, and once my contract ends with the housing association so does my contract with agency. Is this legal? can I sue them for loss of earnings?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.

The contract between the housing association and the agency may provide for these "finders fees" which are commonly known as "temp to perm" fees.

The housing association should check their contract with the agency to see if it provides for the charging of these fees and whether the housing association has the option to retain you for a specified period.

In any event, the agency is not permitted to charge these finders fees if you are taken on as a permanent employee after 8 weeks have passed from 23/12/2014 i.e. if your permanent contract with the housing association is made effective 18th February 2015, the fee of 5000 pounds is not payable by law.

Hope this helps