Example 'Referral scheme terms and conditions'

Created by Aaron Dye, Modified on Mon, 09 Jan 2023 at 08:53 PM by Aaron Dye


Here we have two example Referral scheme terms and conditions one for Recruitment Agencies and one for Internal Recruitment.

This is an example legal document and is not intended to be legal advice. It is provided for informational purposes only. If you have legal questions or need legal advice, please consult a qualified legal advisor.


Example Recruitment Agency Referral Scheme Terms and Conditions

  1. The referral scheme ("Scheme") is open to all individuals who are 18 years of age or older and are not employees of the <Company name> ("Company").
  2. To participate in the Scheme, individuals must refer a candidate ("Referral") to the Company who meets the Company's standard requirements for the position for which they are applying. Referrals must be made by completing and submitting the referral form on the Company's website, by contacting the Company directly and providing the Referral's name and contact information or by Referring a job advert to the candidate, in which case the referral will be automatically tracked digitally.
  3. The Company will only consider Referrals who are not already in the Company's database and who have not already applied for a position through the Company. Referrals of candidates who are already in the Company's database may be rewarded at the Company's discretion.
  4. The Referral must be successfully placed in a position by the Company within <X> months of the referral being made for the referral to be eligible for a reward under the Scheme. The placement will be confirmed by the Company, and the Referrer will be notified of their eligibility for a reward within 30 days of the Referral's placement.
  5. Each Referrer may submit a maximum of three Referrals per week under the Scheme.
  6. If a Referral is successfully placed in a position, the Referrer will be eligible to receive a reward in the form of a cash payment or gift card. The amount of the reward will be determined by the Company and may vary depending on the position for which the Referral is successfully placed.
  7. The Referrer is responsible for ensuring that the Referral is aware of and consents to the referral. The Referrer is also responsible for any taxes or other costs associated with the reward.
  8. The Company reserves the right to modify or terminate the Scheme at any time without prior notice, and any Referral Rewards are at the Company's discretion.
  9. The Company is not responsible for lost, late, incomplete, invalid, or misdirected referrals, or for any technical problems, malfunctions, or failures of any kind.
  10. By participating in the Scheme, Referrers agree to be bound by these terms and conditions and the decisions of the Company, which are final and binding in all matters related to the Scheme.
  11. These terms and conditions are governed by the laws of the state in which the Company is located, and any disputes arising out of or in connection with the Scheme will be resolved in the courts of that state. The Scheme is void where prohibited by law.
  12. The Referrer must disclose any personal or professional relationship with the Referral to the Company prior to making the referral.
  13. The Referrer may not refer a family member or close personal friend as a Referral. 

Additional clauses that could be included

  1. In order to be eligible for a referral reward, the Referral must remain employed in the placed position for a minimum period of 90 days. If the Referral leaves the placed position prior to the completion of the 90-day period, the Referrer will not be eligible for a referral reward. The Company reserves the right to determine the Referral's employment status and the Referrer's eligibility for a referral reward in its sole discretion.  (Find out here why we don't typically recommend this clause.)



Example Referral Scheme Terms and Conditions for Internal Recruitment

  1. The referral scheme ("Scheme") is open to all employees of the <Company name> ("Company").
  2. To participate in the Scheme, employees must refer a candidate ("Referral") to the Company who meets the Company's standard requirements for the position for which they are applying. Referrals must be made by completing and submitting the referral form on the Company's website, by contacting the Company directly and providing the Referral's name and contact information, or by referring a job advert to the candidate, in which case the referral will be automatically tracked digitally.
  3. The Company will only consider Referrals who are not already in the Company's database and who have not already applied for a position through the Company. Referrals of candidates who are already in the Company's database may be rewarded at the Company's discretion.
  4. The Referral must be successfully placed in a position by the Company within <X> months of the referral being made for the referral to be eligible for a reward under the Scheme. The placement will be confirmed by the Company, and the Referrer will be notified of their eligibility for a reward within 30 days of the Referral's placement.
  5. Each Referrer may submit a maximum of three Referrals under the Scheme.
  6. If a Referral is successfully placed in a position, the Referrer will be eligible to receive a reward in the form of a cash payment or gift card. The amount of the reward will be determined by the Company and may vary depending on the position for which the Referral is successfully placed.
  7. The Referrer is responsible for ensuring that the Referral is aware of and consents to the referral. The Referrer is also responsible for any taxes or other costs associated with the reward.
  8. The Company reserves the right to modify or terminate the Scheme at any time without prior notice, and any Referral Rewards are at the Company's discretion.
  9. The Company is not responsible for lost, late, incomplete, invalid, or misdirected referrals, or for any technical problems, malfunctions, or failures of any kind.
  10. By participating in the Scheme, Referrers agree to be bound by these terms and conditions and the decisions of the Company, which are final and binding in all matters related to the Scheme.
  11. These terms and conditions are governed by the laws of the state in which the Company is located, and any disputes arising out of or in connection with the Scheme will be resolved in the courts of that state. The Scheme is void where prohibited by law.
  12. The Referrer must disclose any personal or professional relationship with the Referral to the Company prior to making the referral.
  13. The Referrer may not refer a family member or close personal friend as a Referral.

Additional clauses that could be included

  1. In order to be eligible for a referral reward, the Referral must remain employed in the placed position for a minimum period of 90 days. If the Referral leaves the placed position prior to the completion of the 90-day period, the Referrer will not be eligible for a referral reward. The Company reserves the right to determine the Referral's employment status and the Referrer's eligibility for a referral reward in its sole discretion. (Find out here why we don't typically recommend this clause.)



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