Recruiter Fee

Recruiter Fee

Professional employment recruiters often receive compensation in the form of a one-time fixed fee that is a certain percentage of the initial annual salary of the candidate who is placed by the recruiter and hired by the client employer. The following exemplars specify what types of employee compensation is excluded from the term “salary” to avoid later disputes:

Exemplar C59-1

The net Consultation Fee for the Placement of one Candidate is X% of the gross annual salary of the respective Candidate. The conditions stated in the employment Agreement of the Candidate are binding for the calculation of the fee. The fee excludes any annual variable remuneration, any signing bonus, any annual bonus or other commissions or indirect parts of the salary (such as a company car, profit sharing, stock options, pension claims, etc.).

Exemplar C59-2

The fixed net Consultation Fee is X% of the annual income in the first year of the selected Candidate. This includes the actual initial basic fixed annual gross salary, however, excludes any annual variable remuneration, any welcome bonus or other commissions or indirect parts of the salary (such as a company car, stock options, pension claims, etc.).