When a recruitment agency (that is working on a contingency basis, therefore not on a retained basis) successfully places a candidate in a permanent job, the company where they have been placed will be charged a placement fee. This fee should be agreed upon between the company and agency, prior to any work being undertaken by the agency. Additionally, on agreement of this fee a contract should be signed that will also include any form of fee refund, should the placed candidate leave the company within a given time frame.
Normally, a reputable agency will offer a sliding scale of refund or even a free candidate replacement. Typically, the sliding scale will cover a 3-month period where the refund will go from approximately 90% of the original fee to 10% up to the 12th week.