The Following question came to our office in 2009
I have been employing locums through a locum agency while I look for another partner. One of the locums was very good and successfully applied for the vacant partnership post. I informed the agency that I would no longer need their services and that one of the locums provided by them had now accepted a partnership with me. They demanded a substantial Transfer Fee representing 25% of the locums expected earnings in the first 12 months. There has been some negotiation as to the exact level of compensation that they will require, but it is quite clear that this will prove very expensive. Is this a usual arrangement?
Answer
In the small print of the contract with the agency there will undoubtedly be a reference to just such an eventuality. It may be possible to avoid payment if the clause can be legally challenged, but it seems very likely that you have been caught unawares by what is commonly one of the terms and conditions attached to the contract with the agency.
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