HOW TO HIRE · BUSINESS & PROFESSIONAL

How to hire a recruitment agency in the UK
The checks, the questions and the paperwork.

Agencies must follow the Conduct Regulations; the right-to-work check is still yours. Here are the terms and questions.

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THE 60-SECOND VERSION

Hiring a recruitment agency in five steps

  1. Get the terms before any CVsAgree the fee, rebate and who counts as introduced, in writing first.
  2. Brief the role preciselyDuties, salary, must-have skills, location and the timescale.
  3. Check how the fee is worked outPercentage of first-year salary, and whether bonuses and benefits count.
  4. Agree the rebate periodWhat happens if the hire leaves early.
  5. Do the right-to-work check yourselfBefore the new employee starts.

BEFORE YOU BOOK

Check before you book

No register applies

No general licence is needed to run a recruitment agency in England, Wales or Scotland. What applies is the Conduct of Employment Agencies Regulations 2003, which govern terms, fees and the treatment of work-seekers.

Ask the recruitment agency to confirm it follows the Conduct Regulations and to send its terms. legislation.gov.uk →

Terms and fees in writing

Under the Conduct Regulations, as gov.uk summarises them, agencies must not charge work-seekers for finding them work, and the rules also cover terms with hirers and fees such as transfer fees for temporary workers taken on permanently.

Read the transfer fee and introduction clauses before accepting any candidate. gov.uk →

Right-to-work check

Before anyone starts work, gov.uk says the employer must confirm their right to work in the UK, and that hiring some overseas workers needs a sponsor licence. The recruitment agency can help, but the employer carries the duty.

Run the right-to-work check yourself, online with a share code or with original documents. gov.uk →

Candidates' personal data

CVs and interview notes are personal data. Data protection rules require them to be kept secure and used only as people were told; most businesses must pay the ICO fee.

Ask how the agency stores and shares CVs, and delete unsuccessful candidates' data when you no longer need it. gov.uk →

VAT

Recruitment services are standard-rated, so a registered recruitment agency adds 20% to the placement fee worked out as a percentage of salary. Registration becomes compulsory once a recruitment agency has VAT-taxable turnover over £90,000 in any rolling 12 months; from then VAT must be charged and shown as a separate line on the invoice.

Ask the recruitment agency for the VAT number with its terms and for the fee and VAT shown separately on the invoice. gov.uk →

“What is the recruitment agency's fee, and how is it calculated?”

A good answer: A percentage of first-year salary, with whether bonuses and benefits are included.

“What is the rebate or free replacement period?”

A good answer: A period in writing, and what triggers it.

“Is the recruitment on a contingency or retained basis, and is it exclusive?”

A good answer: A clear basis and what any upfront payment buys.

“Which candidates count as introduced by the agency?”

A good answer: A written definition, so you do not pay twice for the same person.

“How does the agency screen candidates?”

A good answer: Interviews, references and skills checks described.

“Will the agency check right to work, and will I still need to?”

A good answer: An honest answer: you must still check before employing them.

“How will the recruitment agency handle candidates' data?”

A good answer: Secure storage and consent to share CVs.

Getting the quote right

  • Fee as a percentage of salary, and what salary includes
  • Who actually attends to the search and screening: the recruitment agency's employed consultants or subcontracted researchers
  • Rebate or replacement period and conditions
  • Contingency, retained or exclusive basis
  • Introduction and transfer fee clauses
  • When the fee is due
  • The VAT number, with VAT at 20% on the placement fee

Walk away if

  • CVs sent before terms are agreed
  • Charges candidates for finding them work
  • No rebate period
  • Vague definition of an introduction
  • Pressure to hire quickly
  • Shares CVs without candidates' consent
LOW
£2,000
TYPICAL
£7,500
HIGH
£15,000

What a recruitment agency costs: £2,000–£15,000 per hire

Recruitment agencies usually charge a percentage of the first-year salary per hire, payable when the candidate starts. Recruitment Agency price guide →

Guide prices compiled by the Locufy team from published Irish and UK provider price lists and 2026/27 cost guides. Updated 2026.

KNOW WHAT TO LOOK FOR? NOW FIND ONE

Recruitment agencies near you, with the badges that matter shown

ID checked, trader status and one score from every review — on the card, before you message anyone. Nearest first. No account needed to look.

Or post the job free and let them come to you.

  1. BriefingRole, salary, skills and timescale agreed.
  2. SearchAdverts placed and networks searched.
  3. ScreeningCandidates interviewed and shortlisted.
  4. InterviewsInterviews arranged and feedback passed on.
  5. OfferOffer negotiated, right-to-work check done by you, start date confirmed.

Contingency fee
Paid only if you hire a candidate the agency introduced.
Retained search
Part of the fee paid up front for a dedicated search.
Rebate period
The time in which part of the fee is refunded if the hire leaves.
Transfer fee
A fee for taking on a temporary worker permanently.
Introduction
When the agency puts a candidate forward to you.
Share code
The code a candidate gives you to check their right to work online.

AFTER

When the job is done

Keep the signed terms and invoiceYou will need them if the hire leaves inside the rebate period.
Keep the right-to-work evidenceCopies of the check you carried out, with the date.
Delete unused CVsRemove unsuccessful candidates' details when you no longer need them.
Rate the workYour review of the recruitment agency can only follow a booking on Locufy. Below four stars, you can send the problem to them first and we follow it up before the review appears.

STEP 1Raise it with the recruitment agencySay what was agreed, what went wrong and the fix you want. The Consumer Rights Act 2015 treats a trader's service as including reasonable care and skill; where the recruitment agency fell short of that, you can ask for the work to be redone free or for money off.
STEP 2Ask Locufy to help put it rightWhen you rate the recruitment agency under four stars, you decide whether the problem goes to them first. We follow it through, then the review is posted.
STEP 3The Fair Work AgencyBreaches of the agency rules can be raised through the government's pay and work rights complaints service; the Fair Work Agency replaced the Employment Agency Standards Inspectorate. For a contract dispute, Citizens Advice (0808 223 1133), Advice Direct Scotland (0808 800 9060) or Consumerline (0300 123 6262) can advise.
STEP 4Small claims courtUnresolved money disputes with the recruitment agency fit the small claims routes: £10,000 is the limit in England and Wales, £5,000 in Scotland under simple procedure and £5,000 in Northern Ireland.

Hiring a recruitment agency: questions people ask

Agencies must follow the Conduct of Employment Agencies Regulations 2003; there is no general licence.

The employer, before the person starts work.

Not for finding them work: gov.uk says agencies cannot charge work-seekers for work-finding services.

£2,000–£15,000 per hire, typically around £7,500. The salary, seniority, niche skills and retained search set the fee. The recruitment agency price guide has the full breakdown; enter your town above to compare recruitment agencies near you.

The rebate clause in your terms decides what you get back.

Most roles take four to twelve weeks from briefing to offer.

MORE GUIDES

More hiring guides in business & professional

How to hire: HR ConsultantHow to hire: CV WriterHow to hire: Interview CoachHow to hire: Employment Law SolicitorHow to hire: Payroll ServiceHow to hire: Management ConsultantHow to hire: Business ConsultantHow to hire: Telemarketing & Lead GenerationAll 701 hiring guides →

Recruitment agencies near you

Recruitment agencies in LondonRecruitment agencies in ManchesterRecruitment agencies in BirminghamRecruitment agencies in GlasgowRecruitment agencies in BelfastAll recruitment agencies on Locufy →

Sources — checked October 2026

  1. Conduct of Employment Agencies and Employment Businesses Regulations 2003
  2. gov.uk — employment agencies and businesses
  3. gov.uk — checking a job applicant's right to work
  4. gov.uk — data protection and your business
  5. gov.uk — Employment Agency Standards Inspectorate (now the Fair Work Agency)
  6. Consumer Rights Act 2015, section 49 — reasonable care and skill
  7. Citizens Advice — more help with a consumer issue
  8. gov.uk — make a court claim for money: court fees
  9. VAT rates — VAT rates for goods and services: standard rate 20% on most goods and services
  10. GOV.UK — Register for VAT: when to register