A replacement guarantee decides what happens when a placed worker doesn't work out: the agency finds you a replacement, and you don't pay a new fee for it. At People Pons the guarantee runs for 60 days from the worker's first working day and covers every reason on the worker's side. The same points are worth checking in any agency contract before you sign it. The guarantee covers every reason on the worker's side: not turning up, not being able to do the job, not wanting to work or causing problems.
Our guarantee in brief
- It lasts 60 days from the worker's first working day, so it does not start when you sign the order.
- It covers every reason on the worker's side: the worker doesn't come to work, can't do the job, won't work, causes problems or leaves.
- The replacement comes with no additional fee.
- Reasons on the employer's side are outside it. The cooperation contract lists the exact exclusions.
1. What a replacement guarantee is
It is the agency's written commitment to find you a replacement worker, with no additional fee, if the placed worker doesn't work out within the guarantee period. With us that period is 60 days from the first working day, and any reason on the worker's side counts.
The guarantee does not promise that a worker will stay with you for years. It protects the first 60 days after the worker starts, and only for reasons that lie with the worker.
2. Why this matters financially
Without a guarantee, a bad hire costs (SHRM 2025 benchmark):
- conservative estimate: 30% of annual salary
- medium: 75% of annual salary
- maximum: 200%+ (with client damage)
For a worker earning €25,000 a year, that puts the risk at €7,500 to €50,000. With a 60-day guarantee you still lose the wages and onboarding time of the weeks the worker was with you, but you don't pay a new fee to get a replacement.
3. What activates our guarantee
What the guarantee covers
Any reason on the worker's side within 60 days of the first working day, for example:
- the worker doesn't come to work
- the worker can't do the job (say, claimed CNC experience turns out to be false)
- the worker won't work, or refuses the shifts or accommodation that were disclosed before arrival
- the worker causes problems
- the worker leaves of their own accord
If a candidate drops out before arriving, we also keep searching at no additional fee.
What does NOT activate the guarantee
Reasons on the employer's side fall outside it, for example when you:
- dismiss the worker for reasons unrelated to their work
- change the position's requirements after the worker arrives
- don't provide the conditions that were agreed
If the job or the conditions after arrival are not what was agreed, we try to sort it out with you and the worker. The cooperation contract lists every case the guarantee doesn't cover.
4. Activation procedure at People Pons
- Write down what happened and when, while it is fresh.
- Let us know within the 60 days, by phone, e-mail or through Leo, and tell us the reason.
- We start searching for a replacement at no additional fee.
- You receive our summary of the new candidate: the position they applied for, confirmation that they accepted your conditions, and quotes from our interview about their work experience.
- If the replacement needs a work permit, you as the employer submit the application, and we help you collect the documents for it.
5. Red flags in agency contracts
Red flag 1: "14-day guarantee"
Too short. Many problems show up only after the worker has spent a few weeks on the job. Ours runs 60 days from the first working day, and anything under 30 days gives you little protection.
Red flag 2: "Refund only, no replacement"
A refund leaves you starting the search again from zero. What you need is a replacement worker.
Red flag 3: "Guarantee only if candidate quits"
A guarantee should cover every reason on the worker's side, including a worker you let go because they can't do the job. Ours does.
Red flag 4: "Subject to manager's discretion"
Vague wording gives you no protection. The triggers should be written down and clear.
Red flag 5: "Additional fee for replacement"
A fee for the replacement defeats the purpose of the guarantee. We replace at no additional fee.
Red flag 6: "Excludes seasonal positions"
Seasonal workers tend to have higher turnover, so the guarantee matters more for them. Ours is the same 60 days for every position.
6. Sample contract clause
A clause that reflects these terms could read:
"If, within 60 days of the Worker's first working day, the Worker does not come to work, cannot do the job, refuses to work, causes problems or leaves for any other reason on the Worker's side, the Agency shall find a Replacement Worker at no additional fee."
Check that the contract also says how you notify the agency and which cases are excluded.
7. Frequently asked questions (FAQ)
What if I want guarantee longer than 60 days?
Our guarantee is 60 days from the worker's first working day, and the cooperation contract sets the exact terms. Raise any special needs for your position before you sign.
Can I activate guarantee multiple times for same position?
The cooperation contract sets how replacements work for your order. Each replacement within the guarantee comes with no additional fee.
What if the replacement candidate also doesn't work out?
Tell us as you would the first time, with the reason. How the guarantee applies to the replacement worker is set in the cooperation contract, so ask about it before you sign.
Does guarantee cover worker who quits after exactly 61 days?
No. The guarantee runs for 60 days from the worker's first working day, and day 61 is outside it.
Can guarantee be structured for seasonal positions (shorter season)?
Seasonal positions get the same guarantee as any other: 60 days from the worker's first working day.
What about the original worker: does agency get them back?
That is between the agency and the worker. You employ the worker directly, and their next steps don't affect your replacement.
Is replacement guarantee tax-deductible like normal commission?
Yes. The commission for the original placement (which includes the guarantee) is fully tax-deductible business expense.
8. Action plan
- Check your current agency contract for a replacement guarantee clause.
- Compare it with a strong benchmark: 60 days from the first working day, every reason on the worker's side, replacement with no additional fee.
- If your contract is weaker, negotiate better terms or compare other agencies.
- Decide internally who notifies the agency and what evidence you keep.
- Calculate what a bad hire costs in your sector. If the risk is €50,000, the guarantee terms are worth a serious negotiation.
See also:
Sources:
- SHRM, 2025 Talent Access Report
- CareerBuilder, Cost of a Bad Hire Survey, 2024
This article provides general guidance and does not constitute legal advice. Specific contract language should be reviewed by qualified legal counsel.
Have a question about your situation? Call +385 91 514 0192 or write to us in the chat or by email (Leo answers in the chat 24/7, and we reply to emails within one to two business days).