What is a recruiter guarantee period?
A recruiter guarantee period is a contract term: if a placed candidate leaves or is dismissed within an agreed number of days of starting, the recruiter either refunds part of the fee or runs a replacement search. The length and terms are set by contract. Both sides agree them in the fee agreement before any candidate is introduced.
General business practice as of 31 October 2026. Not set by statute.
At a glance
- The guarantee is a promise about the placement, not a promise about job performance.
- Remedy is usually either a prorated refund or one replacement search.
- The clause should say what voids the guarantee.
- A written agreement is essential. See the recruiter fee agreement template.
What does a guarantee clause include?
| Element | What to decide |
|---|---|
| Length | Number of days from the candidate's start date. Longer means more risk for you |
| Trigger | Resignation, dismissal for cause, or both. Exclude layoffs and role changes |
| Remedy | Prorated refund, percentage refund, or one replacement search |
| Replacement scope | One search for the same role at no extra fee, with a time limit |
| Conditions | The fee must be paid; client must give written notice |
| Exclusions | Position eliminated, relocation, change of duties, client breach |
| Refund timing | Days to pay after written notice |
Refund or replacement?
- Prorated refund. Easy to compute. Example formula: fee x (days remaining in guarantee period / total guarantee days).
- Replacement search. Keeps the client relationship and your time is the cost. Set a limit of one replacement and a deadline.
- Choose at the client's option or yours. The fee agreement template offers options.
Worked example (illustrative). Fee of USD 20,000, guarantee of 90 days, candidate leaves on day 30. Days remaining are 60, so a prorated refund is USD 20,000 x 60 / 90 = USD 13,333. A replacement search would instead cost you your time.
How do you protect yourself as a recruiter?
- Start the clock on the candidate's start date, not the offer date.
- Pay your own sources only after the client pays, where your agreement with others allows. See commission structures.
- Require written notice of the departure within a set number of days.
- Exclude departures you cannot influence: layoffs, restructures, role changes.
- Make the guarantee conditional on timely payment.
- Record the placement and the start date. In LiveRec you can record a placement.
How do you protect yourself as a client?
Ask for the guarantee in writing, check the remedy, and keep proof of the start and end dates.
FAQ
How long is a guarantee period? It is negotiated in the contract. Choose a length you can price into your fee.
Does a retained search have a guarantee? It depends on the contract. See contingent vs retained.
What if the client's behavior caused the departure? Say in the agreement that client misconduct voids the guarantee.
Sources
- LiveRec editorial: a guarantee period is a contract term agreed between recruiter and client, not set by statute; model clauses in /templates/recruiter-fee-agreement (accessed 31 October 2026)
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.