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What Are Employment Agency Fees?

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  • Written By: Jennifer Leigh
  • Edited By: Lauren Fritsky
  • Last Modified Date: 25 October 2014
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Employment agency fees are an amount of money paid to an employment agency when they match an employer with a suitable employee. These type of fees vary because, depending on the employment agency, they can be charged to either the employer or the employee. There are also agreements that the employer and employee can reach before beginning their employment contract. Since employment agencies provide this service, they charge fees that they believe are reasonable, but this amount varies considerably from one agency to another.

Some employment agency fees are charged to the employer while others are charged to the employee looking for a job. In the case of the employer, the employment agency charges fees in order for the employer to access their database of potential employees. Alternatively, employment agency fees can be a percentage of the amount the employer is willing to pay to find a new employee for its company. This amount is added to the amount the company is wanting to pay the employee for beginning work with them.

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When a person signs up with an employment agency to find a job, he is often charged employment agency fees for the service. This can be a direct fee before the individual is allowed to begin looking at jobs or can come out of his future pay. When this occurs, the employer pays the employment agency the money owed to the employee and the employment agency takes its fees before providing the employee with a paycheck. Whether the fees are charged to an employer or a potential employee is at the discretion of the employment agency, but it often depends on supply and demand in the marketplace. If there are more potential employees than employers, it makes more sense to charge the employees to find a job than the employers.

In certain cases, the employer and employee come to an agreement about how to pay the employment agency fees. They can decide to split the fees evenly or in a way that they both come to agreement about before the work begins. In other cases, the employee can pay them and later be reimbursed, either fully or partially, if he continues working at the company for a required amount of time. As long as the employment agency is paid in these instances, it does not care who ultimately pays the fees. A written contract should be outlined between the employer and employee regarding this matter before the employment agency fees are paid.

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