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Absolutely. If a recruiter utilizes a back-office service provider for their contract placements, that provider can add the recruiter’s conversion fee language (or Conversion Fee Agreement) into its own Client Services Agreement. Please note that the provider is not under any obligation to invoice for the conversion fee or enforce its payment.

Then, when the company wants to convert the contractor to a full-time employee, the recruiter should contact the back-office provider and submit the date that the recruiter and their client have agreed upon for the conversion. Once the conversion occurs, the back-office provider will handle the transfer of the employee from its own employment to the client’s.

Most importantly for the recruiter, the provider should not take any portion of the temp-to-direct conversion fee that the recruiter negotiates with their client company.

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