Set recruiter commission rules that reflect placements, temp books and payment reality

Recruitment commission often turns on events that do not appear in ordinary sales plans. That can include candidate start dates, replacement periods, rebates to clients, split ownership between consultants, temp margin calculations and whether the client has actually paid. If those points are vague, disagreements can arise even where everyone thought the commercial deal was obvious. A recruiter-specific plan puts those mechanics into one document. The practical working model can be just as important as the contract wording, so the document should match how your desks and billing processes operate in practice.

Most agencies need the plan to say exactly when commission is treated as earned, what formula applies, when payment is made and what can change that outcome. Common pressure points include candidate drop-off, refunds, replacement hires, client non-payment, house accounts, team deals, manager overrides and what happens when someone moves desk or leaves. Temp and contract books can also need wording around margin, timesheets or ongoing client payment cycles. A clear plan helps set expectations internally, but it still needs to line up with the way the business actually runs day to day.

Helpful information includes whether you place permanent staff, temporary workers or contractors, how fees are billed, whether commission is linked to invoice issue or invoice payment, and how you handle split desks or shared accounts. We may also need to know how you record deals, who approves adjustments and whether different teams follow different rules. The legal drafting should follow your actual information-handling process, rather than relying on generic privacy wording, especially where performance data and client or candidate information feed into commission decisions.

Sometimes a simple template works for a very straightforward model, but many agencies have different desk types, billing cycles and exceptions that make generic wording risky. A plan that suits a permanent placement desk may not work for temp margin arrangements or contractor books. Problems often show up around clawbacks, shared credit, unpaid invoices and discretionary adjustments. A more considered draft is usually worthwhile where your structure is mixed or your recruiters are paid in different ways. This service Your lawyer will explain the practical position and your options in plain English.

No. The service covers the legal work on the commission plan document and related questions about that document. It does not cover payroll configuration, software setup, manager training, security remediation, representation in disputes or ongoing HR management after the plan is completed. Those issues can be important because the legal position depends on the way the business handles information in practice, not only on the written wording. If you need broader support beyond the document itself, that can be discussed separately.

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