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Last updated: February 2004
Frequently asked questions
Can an employment agency seek placement fees from the APS?
Agencies may use the services of employment agencies and similar to:
- supply short term labour;
- assist in finding suitable applicants; and/or
- assist in the selection of the most suitable of those applicants.
Agencies should, however, be aware that some employment agencies include in their standard form of contract a clause providing that if a person is introduced to an employer by that employment agency and the employer engages that person within a certain time, a placement fee is payable.
In some cases such fees may become payable even if the employee is engaged by another area of the agency quite independently of the initial referral.
Agencies may therefore wish, when negotiating contracts with employment agencies, to seek to negotiate to narrow the scope of such clauses so that, for example, a placement fee is payable only where the engagement of the employee is as a direct consequence of the initial referral.
