How to choose a recruitment or staffing agency
Recruitment agencies find permanent staff, supply temporary workers and help people into jobs. What to check depends on which side you are on, but in every market the questions are the same: is the agency licensed, and who pays?
- Markets
- US · UK · UAE & GCC · International
- Criteria
- 5 (v1.0)
- Official sources
- 14
- Reviewed
- October 2026
What recruitment agencies do
Recruitment agencies work both sides of the labour market. Employers use them to find permanent staff or to supply temporary and contract workers, and candidates use them to find work. The law often treats these roles differently. In Great Britain, an employment agency introduces candidates who are then employed by the hirer, while an employment business employs temporary workers and supplies them to a hirer. Charging job seekers for finding work is banned in the UK, with narrow exceptions, and in the UAE, while some US states such as New York allow tightly regulated fees.
For employers, the main risks are poor candidates, disputes over placement and transfer fees, and using a labour provider that lacks a required licence. For candidates, they are upfront fees, withheld pay and fake job offers. We give licensing and compliance more weight here than for consultants, since several markets license agencies directly, and we look closely at fee terms on both sides. Candidate quality matters as much as compliance, because a placement that fails during probation costs the employer time and the worker a job.
Sourcing, screening and introducing candidates who are then employed directly by the hiring company, usually for a placement fee.
Supplying workers who are engaged and paid by the agency or employment business while working under the hirer's direction.
Targeted searches for senior roles, often paid in stages and focused on people who are not actively job hunting.
Recruiting many workers at once for warehouses, retail, hospitality or harvests, where labour provider licensing may apply.
Hiring workers from abroad, including visas, travel and onboarding, where fair recruitment principles keep recruitment costs off workers.
Placing housemaids, nannies and drivers with households, which in the UAE and Saudi Arabia runs through licensed offices and official platforms.
An agency runs all or part of a company's hiring process under a longer-term contract, often across many roles.
What to check in your market
Rules differ by country. Choose a market to see the licences, registers and complaint routes that apply there.
United States
Licensing of employment agencies happens at state or city level, and the rules vary. New York is a clear example: any business that charges a fee to find a job must be licensed, by the State Department of Labor outside New York City and by the city within it, and must display that licence. New York agencies may charge job seekers only under a written contract or after a referral leads to a hire, cannot charge simply for registering, and must give signed receipts. The Federal Trade Commission notes that honest placement firms do not typically charge candidates, because the hiring company usually pays.
Outside New York City, confirm a New York agency appears on the Department of Labor's list of currently licensed employment agencies.
dol.ny.govGet a copy of any contract you sign and a receipt signed by whoever takes payment; New York agencies may not charge you just to register.
ag.ny.govWalk away if a placement firm wants money in advance, a warning sign the FTC highlights in its guidance on job scams.
consumer.ftc.gov
Report job scams and upfront-fee demands to the Federal Trade Commission at ReportFraud.ftc.gov and to your state attorney general. In New York, job seekers can use the Attorney General's employment complaint form, and Class A and A1 workers who have not found a job can demand an immediate refund of any deposit or advance fee.
United Kingdom
In Great Britain, the Conduct of Employment Agencies and Employment Businesses Regulations 2003 set the rules. Agencies may not charge work-seekers for finding work, apart from performers, some entertainment workers and photographic or fashion models, and must give a key information document and written terms before looking for work for them. Since 7 April 2026 the Fair Work Agency enforces these rules in England, Scotland and Wales, replacing the Employment Agency Standards Inspectorate, and it also runs gangmaster licensing for labour providers in agriculture, horticulture, shellfish gathering and food processing and packaging. Northern Ireland has its own Employment Agency Inspectorate.
Before registering, confirm the agency will not charge you for finding work and will give you a key information document and written terms.
gov.ukKeep your own record of hours: an employment business must pay temporary workers for all hours worked, even when the hirer has not paid.
gov.ukEmployers should find any temp-to-perm transfer fee in the terms of business, together with the extended hire period that must be offered instead.
gov.ukFor farm, food processing or shellfish work, search the Fair Work Agency's public register to confirm the labour provider holds a gangmaster's licence.
gov.uk
Complain to the Fair Work Agency about withheld pay, fees for finding work, or a missing contract or key information document, using the pay and work rights complaint form, by emailing contact@fairworkagency.gov.uk or by calling 0345 161 6000. It does not charge for its help. For agencies based in Northern Ireland, the Employment Agency Inspectorate is likely to be the regulator.
UAE & GCC
In the UAE, Federal Decree-Law No. 33 of 2021 bans recruitment or employment mediation without a licence from the Ministry of Human Resources and Emiratisation (MOHRE), and prohibits employers from charging workers recruitment costs, directly or indirectly. Agency licences are renewed annually and can be suspended or revoked, including for forced labour or unpaid wages. Domestic workers fall outside that decree-law and are recruited through separately licensed offices. In Saudi Arabia, domestic worker recruitment runs through Musaned, a government platform linked to the Ministry of Human Resources and Social Development, which lists licensed recruitment companies and offices.
Ask for the agency's MOHRE licence and check it covers the service you are buying: mediation, or temporary employment and outsourcing.
mohre.gov.aeJob seekers should refuse any request to pay for a job offer; the UAE government states that charging prospective employees recruitment fees is illegal.
u.aeHouseholds hiring a housemaid or nanny should pick an office from MOHRE's approved domestic workers service centres and keep every receipt.
mohre.gov.aeIn Saudi Arabia, check the Musaned directory of licensed recruitment companies and offices before signing a domestic worker contract.
musaned.gov.sa
Workers can call MOHRE's Labour Claims and Advisory Call Centre on the toll-free number 80084 or use its online complaint services, including those for domestic workers. Negative practices by domestic worker recruitment offices can be reported on the same number or through MOHRE's digital platforms. Because MOHRE can suspend or revoke agency licences, reporting a breach to it carries weight.
International
Cross-border recruitment is framed by the International Labour Organization's (ILO) Private Employment Agencies Convention, 1997 (No. 181). It sets a framework for registering, licensing and regulating private employment agencies, prohibits charging recruitment fees or costs to workers except in specified circumstances, and adds protections for migrant workers in ratifying states. The ILO's fair recruitment guidelines go further: workers should not be charged, directly or indirectly, in whole or in part, any recruitment fees or related costs, which leaves those costs with the employer. CVs, passports and visa records sent abroad also bring data protection duties.
Ask the agency to confirm in writing that workers pay no recruitment fees or related costs, matching the ILO's fair recruitment definition.
ilo.orgFind out whether the agency's home country has ratified Convention No. 181, and which national licence the agency holds there.
ilo.orgBefore anyone travels, compare the job offer with the signed contract and settle who pays for visas, flights and medical checks.
ilo.org
No international body handles individual recruitment complaints. Workers should go to the labour authority where the agency is licensed and to the one where they work. Employers can protect themselves and their workers by writing fee terms, data handling, the governing law and a refund route for any wrongly charged worker fees into the agency contract.
How we assess recruitment agencies
These are the editorial criteria behind every recruitment agency we rank, with the weight each carries in the editorial score. The editorial score makes up 60% of a ranking and adjusted customer ratings the other 40%, as set out in how we rank.
| Criterion | Weight | What we look at | Evidence we accept |
|---|---|---|---|
| Licensing and compliance | 25% | Whether the agency holds every licence its work needs, such as a MOHRE licence, a New York agency licence or a gangmaster's licence, and follows fee rules. | Entries on official registers and licence lists, licence numbers on contracts, and no enforcement action by labour authorities. |
| Fee terms on both sides | 20% | Clarity of placement, transfer and rebate terms for employers, and a clear statement that candidates pay nothing for finding work. | Terms of business, candidate terms, key information documents and published fee policies reviewed before engagement. |
| Candidate quality and fit | 25% | How well the agency screens skills, references and right to work, and how often its placements last beyond probation. | Screening procedures, reference and right-to-work checks, retention figures the agency can document, and employer reviews. |
| Care for clients and candidates | 15% | Responsiveness to employers and candidates, honest feedback, and how the agency treats people it does not place. | Customer reviews from both employers and candidates, response times, and how complaints were handled. |
| Pay and placement reliability | 15% | For temporary staffing, whether workers are paid on time for every hour; for permanent hires, whether rebates or replacements are honoured. | Payroll and timesheet processes, rebate clauses honoured in practice, and outcomes of complaints to labour authorities. |
Before you hire
Questions to ask
- Which licences do you hold for this work, and can I see the numbers?
- Will the candidate or worker be asked to pay anything at any stage?
- What is the placement fee, and what rebate or replacement applies if the hire leaves early?
- For temporary workers, who employs them, pays them and handles holiday pay?
- What transfer fee applies if we hire a temporary worker permanently, and when does it stop applying?
- How do you check identity, right to work and references before introducing someone?
- How do you store candidate data, and who outside your firm can see it?
Red flags
- A request for candidates to pay a registration, training, visa or placement fee before starting work.
- Job offers that arrive without an interview and demand personal documents or payment straight away.
- No licence number on contracts or invoices in a market where agency licensing is required.
- Temporary workers told they will be paid only once the client has paid the agency.
- Rules stopping workers from taking other jobs, or deductions from pay that were never agreed in writing.
- Transfer fees in the terms of business with no extended hire alternative offered.
How pricing works
Employers pay for recruitment. Permanent placements are commonly charged as a percentage of the new hire's first-year salary or as a flat fee, usually due when the candidate starts and often backed by a rebate or free replacement if they leave early. Executive search firms may split their fee into retained stages. Temporary staffing is billed as an hourly or daily charge rate that covers the worker's pay, employment costs and the agency's margin, so compare charge rates alongside the pay rate the worker actually receives.
In Great Britain, a temp-to-perm transfer fee is enforceable only if the terms of business set it out and offer an extended period of hire as an alternative. It generally applies within 14 weeks of the first assignment starting or 8 weeks after the last day worked, whichever ends later. Candidates should never see a bill for finding work in the UK or the UAE, apart from the narrow UK exceptions for performers and models.
- Contingency placement fee
- Paid only when a candidate is hired, usually calculated on salary and backed by a rebate period.
- Retained search
- Fee paid in instalments during a search for a senior role, starting before any candidate is presented.
- Temporary charge rate
- Hourly or daily rate covering the worker's pay, employer costs and agency margin, invoiced on approved timesheets.
- Temp-to-perm transfer fee
- Charged when a hirer takes on a supplied worker directly; in Great Britain it must be in the terms and time-limited.
- Outsourced volume pricing
- A monthly management fee or a per-hire price for recruitment handled across many roles.
Top 8 recruitment agencies
Rankings for this category are being researched market by market. Each one will publish when enough businesses pass the eligibility checks and an editor has approved the assessment. A list is never padded to reach eight.
Questions about recruitment agencies
Can a recruitment agency charge me for finding a job?
In the UK, agencies and employment businesses may not charge work-seekers for finding or trying to find them work, except for performers, some entertainment workers and photographic or fashion models. In the UAE, charging prospective employees recruitment fees is illegal. New York allows some fees, but only under a written contract or after a referral results in a hire. The FTC advises walking away from placement firms that want payment upfront.
What changed in UK agency regulation in 2026?
The Fair Work Agency began operating on 7 April 2026. It replaced the Employment Agency Standards Inspectorate as the state regulator for employment agencies and businesses in England, Scotland and Wales, and it now runs the gangmaster licensing scheme. Complaints go through the pay and work rights complaint form, by email or by phone. Northern Ireland keeps its own Employment Agency Inspectorate, and the 2003 Conduct Regulations still set the rules.
Who pays a temporary worker if the client does not pay the agency?
In the UK, the employment business that supplies the worker must pay for all hours worked, even when the hirer has not paid its invoice or a timesheet has not been authorised. Workers must also receive holiday pay and at least the National Minimum Wage. Check your contract to see which business engages you, because that is who you pursue if pay goes missing.
Do I need a licensed office to hire a domestic worker in the UAE?
Yes. MOHRE licenses domestic worker recruitment offices, and in February 2026 it reported that 12 unlicensed offices had been closed and referred to the Public Prosecution over the previous year. Use an office from MOHRE's approved list, read the service package prices before paying, and keep the contract. Domestic workers sit outside the general labour decree-law and are governed by separate rules.
What should employers check in an agency's terms of business?
Look for the fee basis, when the fee becomes payable, the rebate or replacement period, and any transfer or introduction fees for temporary workers. In Great Britain, an agency must obtain enough information from you to select suitable candidates, and any candidate details it gives you verbally must be confirmed in writing within 3 business days. Also check who is responsible for right-to-work checks and how candidate data is handled.
Sources
Official sources behind this page, checked in October 2026.
- Employment agencies and businessesGOV.UKUK
- Overview of the Conduct Regulations 2003GOV.UK (Department for Business and Trade)UK
- Making a complaint to the Fair Work Agency (FWA) about your recruitment agencyGOV.UK (Fair Work Agency)UK
- How to check if a labour provider has a gangmaster's licenceGOV.UK (Fair Work Agency)UK
- Employment AgenciesNew York State Department of LaborUS
- Employment agenciesNew York State Attorney GeneralUS
- Job ScamsFederal Trade CommissionUS
- Federal Decree-Law No. (33) of 2021 Regarding the Regulation of Employment Relationships and its amendmentsMinistry of Human Resources and EmiratisationUAE & GCC
- Protection of workers' rightsThe Official Platform of the UAE Government (u.ae)UAE & GCC
- Approved Services CentersMinistry of Human Resources and EmiratisationUAE & GCC
- MoHRE: 12 unlicensed domestic worker recruitment offices closed and referred to Public Prosecution over the past yearMinistry of Human Resources and EmiratisationUAE & GCC
- MusanedMusaned (Saudi domestic labour platform)UAE & GCC
- General principles and operational guidelines for fair recruitment and definition of recruitment fees and related costsInternational Labour OrganizationInternational
- The Private Employment Agencies Convention, 1997 (No. 181)International Labour OrganizationInternational