Advice and guides / For employers
Replacement guarantees: the clause to ask for
Almost every recruitment agreement has a replacement clause. A fair number of them cannot actually be used.
The replacement guarantee is the part of a recruitment agreement that matters on the worst day: the hire has left in month two, the role is open again, and you have already paid. Whether that day costs you nothing or costs you the full fee again was decided when you signed.
What a reasonable window looks like
Ninety days from the joining date is the common market position for permanent roles in India, and it is a fair one. Sixty is on the tight side. Thirty is close to meaningless, because most early departures happen between weeks six and twelve, once both sides know what the job really is.
For senior or specialist roles, longer windows are normal, because the search takes longer and the settling in takes longer too.
The five questions to ask before you sign
- Does the clock start at offer or at joining? It should start at joining. A window that starts at offer can be half gone before the person walks in.
- How many replacements? One free replacement is standard. Ask what happens if the replacement also leaves inside the window.
- Does the window restart for the replacement? Often it does not, and that is worth negotiating, because a fresh hire deserves a fresh window.
- Replacement or refund? Most agreements offer a replacement only. A pro rata refund option matters if the requirement has gone away.
- Is there a time limit on claiming? Some clauses require you to notify within seven or fourteen days of the departure. Miss that and the guarantee lapses.
The exclusions that quietly remove the guarantee
Read the carve outs, because this is where the clause usually dies. Common ones: redundancy or role withdrawal, change in the role's scope, the candidate leaving because of unpaid salary, restructuring, and any departure the agency can characterise as your fault.
Some exclusions are fair. If you make the role redundant in month two, that is not the agency's failure. Others are drafted so broadly that almost any departure can be pushed into them. The test to apply: could a reasonable agency use this wording to decline a genuine early exit? If yes, tighten it.
Wording that makes it usable
Three things make the difference between a clause you can invoke and one you argue about. Name the trigger precisely, in days, from the joining date. Name what the agency owes, whether that is a replacement search commenced within a stated number of days or a stated refund. And name the notification route and period, so nobody argues later about whether you told them in time.
What the guarantee cannot do
It cannot make a bad screen good. A ninety day window is compensation for a failure, not protection from one, and a replacement search still costs you the vacancy, the onboarding and the manager's time. The clause is your fallback. The screening is what stops you needing it.
This is not legal advice, and your counsel should read any agreement before you sign it. Our replacement terms are written into the engagement letter before any work begins, alongside the fee. Send a brief and you will see both.