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Recruitment referral bonus scheme policy

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Use this if you require a robust and practical recruitment referral bonus scheme policy.

Reading time
How long to understand and implement this policy?
5 mins
Word count
How many words in this policy?
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What is a Recruitment referral bonus scheme policy?

The purpose of this Recruitment referral bonus scheme policy is to provide you with a flexible and customisable document to serve as a robust and effective starting point for you.

By using our Recruitment referral bonus scheme policy, you can streamline your process, maintain consistency and accuracy, and save time, and it can be easily adapted to fit your specific scenario.

Best practice timescale for this to be issued
When should this policy be issued?
During onboarding / after changes / planned refresher
Issued by who, to whom
Who should issue this policy, and to whom?
Internally issued to appropriate recipients in your Company
Applicable legal jurisdictions
In which jurisdictions can this policy be used?
Great Britain & NI (United Kingdom), Worldwide

Recruitment referral bonus scheme Policy


If all conditions of this policy are met, [Company] will give an introduction bonus of [amount] to any employee who introduces a job candidate who is later hired by the company as a result of that introduction.

Each new hire will only be eligible for one introduction incentive. The employee whose name is submitted first in accordance with protocol will get the introduction bonus if more than one eligible employee references the same successful job application.

Tax and national insurance deductions are applicable to the introduction bonus.

An employee is free to recommend as many people as they like. [Any referral must, however, be in relation to a specific vacancy.]

Terms and conditions

The following requirements must be met in order for a staff member to qualify for the introduction bonus:

Within [one year] of the day the reference application is received, the new employee must be hired [but possibly not into the exact position for which he or she was recommended].

At the time of payment, both the introducing employee and the new hire must be working for [Company]. [Company] reserves complete discretion not to pay the bonus or instalment where either party's employment contract is subject to notice of termination (whether supplied by the employer or the employee).

The new employee must not have previously worked for or during the past [two] years for [Company].

The new employee cannot have applied for the same post independently or through a referral from another party, such as a recruiting agency, within the previous [year].

A recruiting manager or any other employee involved in the pertinent recruitment procedure may not introduce the candidate.


The job applicant should include a covering letter with his or her CV or application form that clearly identifies the recommending employee and indicates that the application is being submitted as part of the recruiting referral incentive programme.

Note: It's crucial to identify the referring employee in the job applicant's initial contact. Applications for referrals for retroactive hiring cannot be accepted.

The bonus will be given [upon successful completion of the probationary term for the new hire] or [after the new hire has put in [number] months of continuous service].

[The bonus will be given in two instalments of [amount]: one when the new hire begins work and one once the new hire has successfully completed their probationary period/had [number] months of continuous service.]

This policy [does not] form[s] part of your terms and conditions of employment.

Version: [1.0]

Issue date: [date]

Author: [name, job title]

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Recruitment referral bonus scheme policy
recruitment referral bonus scheme policy