Conduit Recruitment Limited (“Conduit”) Terms
l. Conduit effects introductions between employers, partnerships or entities seeking providers of services (“Clients”) and potential employees, potential partners or potential consultants (“Candidates”). These conditions shall apply unless a variation is agreed in writing by a Director of Conduit.
2. An introduction will have been effected through the arrangement of an interview, the submittal of a CV or information sufficient to identify the candidate following an application made by an employer to Conduit, about a requirement current, potential or otherwise. In these terms, the word employee will apply to any person who is introduced by Conduit and enters into an employment contract, a position as a partner or is contracted either for services or a business they control is contracted for services. Fees will also be charged if a potential employee introduced by Conduit to an employer is engaged within twelve months of the date of initial introduction regardless of which subsidiary or associated business the related person joins.
3. Fees are charged for each introduction of an employee, partner or consultant and are calculated as a percentage of the Candidate’s first year’s anticipated gross remuneration (including guaranteed and non-guaranteed elements) which shall include (without limitation) salary, benefits, commission, bonuses, overseas premiums, living/accommodation allowances, profit share, ‘sign on’ fees and any other financial emoluments that have been provided to act as an incentive to the Candidate to join the Client. The provision of a motorcar will be valued at £5,000, the taxable benefit or car allowance, whichever is the greater. Employers undertake to inform Conduit in writing of the terms of employment (or use whether under a contract of services or for services) and to provide such information that may be necessary to calculate fees payable.
4. Conduit reserves the right to charge an additional fee based upon actual total remuneration in the first year when actual remuneration is materially different from the projected remuneration used in calculating the initial fee. Employers undertake to supply Conduit with such information in writing as may be necessary to calculate such additional fees.
(a) Contingency – Fees for candidates from the Conduit database are payable when the Candidate introduced by Conduit commences employment with the Client. Fee rates are as follows:
20% total remuneration to £29,999
25% total remuneration from £30,000 to £59,999
30% total remuneration of £60,000 to £99,999
35% total remuneration of £100,000 and above
There is a minimum fee of £5,000 before VAT irrespective of the total remuneration.
If, after acceptance of an offer of engagement but prior to the Candidate commencing the engagement, the Client decides for any reason, which is outside the control of Conduit, not to proceed with the engagement, it shall still be liable to pay the applicable Fee as detailed above.
(b) Retained Work
Fees and costs for advertising and executive search assignments will be detailed in a separate assignment proposal. All other terms detailed here will apply to retained work unless excluded or varied in the assignment proposal.
(c) Termination of Retained Assignments
If during the course of an assignment work is terminated or suspended due to factors outside the control of Conduit or if terms of reference are materially altered, fees to cover working costs appropriate to the stage reached will be payable. This will include the full amount of the Completion Fee that would be due had an assignment been allowed to reach conclusion where termination or suspension is advised to Conduit at or after the Progress (or shortlist) Fee stage is reached.
6. All fees are calculated exclusive of VAT and will bear VAT at the applicable rate.
7. Invoices are issued on commencement of employment and are payable within 14 days of issue. Invoices for items such as expenses and advertising are issued as costs are incurred and are payable on receipt.
8. Conduit reserves the right to charge interest on fees unpaid within 14 days of the invoice date. A rate as determined by the Late Payment of Commercial Debts (Interest) Act 1998 will apply and calculated on a day-to-day basis from the date of the invoice until the date of payment. Conduit also reserves to the right to rescind discounts made against these standard terms in relation to introduction fees that remain unpaid 3 months from the invoice date.
9. Guarantee – Conduit will seek to introduce a replacement employee at no extra charge provided that:
9.1 Conduit’s fee in respect of the introduction of the employee has been paid in full within 14 days of the date of the invoice.
9.2 The employee has terminated or been dismissed from the employment within 10 weeks of commencement.
9.3 The employer notifies Conduit in writing of the termination of the employment within seven days thereof.
9.4 The employer or any subsidiary or associated company or firm of the employer shall not re-engage the employee within twelve months of the date of termination of employment.
9.5 The termination is not due to redundancy, constructive or unlawful dismissal, corporate restructuring, change of management / job description or role details, pregnancy, illness or injury.
In the event that an employer has fulfilled all the above conditions and is entitled to a free replacement and Conduit is not able to provide one within 3 months, the employer will receive a repayment calculated as a proportion of the introduction fee net of VAT:
10% of the fee relating to a Candidate introduced by Conduit shall be refunded for every week of the 10 weeks that the candidate was not in the Client’s employment.
10. Confirming of professional and academic qualifications, medical examinations, taking up references and work permits and ascertaining the suitability of any potential employee prior to engagement are not the responsibility of Conduit.
11. Privacy – the benefit of introductions made by Conduit is not assignable by potential employers and a potential employer who passes on an introduction of a potential employee to another will be charged the appropriate fee, as set out above, if employment results. The guarantee provisions set out above will not apply in such circumstances.
12. Warranty – in effecting introductions Conduit is obliged to rely upon the good faith of potential employees and cannot accept responsibility for any loss or expenditure incurred by an employer in attempting to effect a meeting with a potential employee. Subject to the provisions of the Unfair Contract Terms Act 1977, Conduit cannot accept responsibility for any information or representation concerning potential employees to whom employers or potential employers may be Introduced and in particular the history, character, age, capability or suitability of any potential employee. No representation or warranty is made that any potential employee is or will be available to fill a position.
13. Acceptance – by notifying Conduit, whether or not in writing, of a requirement or agreeing to make contact with or employ a potential employee introduced by Conduit an employer is deemed to be bound by these terms of business. When a candidate has been introduced by Conduit any duplicate application made directly or through another consultancy will not affect these terms and conditions.
14. These terms shall be interpreted in accordance with English law and the parties agree to submit to the jurisdiction of the English courts’.
15. Conduit Employees – where the client engages (whether in employment or otherwise) a member of staff of Conduit (whether an employee or otherwise), the client will pay a fee to Conduit as if that person had been offered by Conduit as a potential employee or provider of services in accordance with the terms herein.
16. Temporary placements
16.1 Where a candidate, previously employed through Conduit on a temporary or contract basis, is offered a permanent position then the full fee as calculated under Clause 5 above is due.
16.2 When a candidate employed on a temporary basis continues to be employed for a period greater than 12 months, Conduit will charge the client on a continual basis unless otherwise agreed in writing.
Registered in England No. 4365595