Factoring Companies Guidebook
Permanent Placements
Definition
The recruitment of personnel into permanent employment positions
Concerns
If a person is placed into a permanent position, by a Recruitment Agency, leaves the company's employ within a pre-defined period of time, the company has the right to claw back their fee, previously invoiced to them by the Agency. This is effectively 'Sale or Return' on people. The claw-back would be on a sliding scale determined by the actual length of employment and the Agencies Terms and Conditions.
Some Agencies when recruiting to place permanent staff will advertise the positions themselves and invoice the customer for this in advance of the placement.
Identification
Review the nature of the invoices and credit notes, for refunds in connection with the early departure of recruits.
Review the Client's and customer's terms and conditions of sale and purchase to confirm the nature and timing of invoices. Also any confirmation of appointment required prior to the Client (Agency) acting on the customer's behalf.
Treatment
These circumstances should be noted with a comparison between permanent and temporary values. Where the % is small (less than 10%) we may decide to receive assignment with no reserve. This will depend on all circumstances. Report the values etc.
