How Recruitment Agency Fees Work for Household Staff and Yacht Crew
Who pays a recruitment agency, when you pay, what a replacement guarantee covers, and the rules on charging candidates.
How do household staffing agency fees work?
The employer pays the agency, usually only when a candidate is placed. Terms vary by agency and are agreed in writing before the search starts. Candidates should not pay: UK agencies may not charge workers for finding them work, and under MLC 2006 seafarers must not pay recruitment fees.
Key Facts
- The employer pays the agency, not the candidate.
- Most agencies charge when a candidate is placed, not upfront.
- UK agencies may not charge workers a fee for finding them work, except in a few listed occupations such as performers.
- Under MLC 2006, seafarers must not pay recruitment or placement fees, apart from personal documents such as a medical certificate or passport.
- Lighthouse Careers charges no upfront fees and gives a free replacement guarantee.
How Recruitment Agency Fees Work for Household Staff and Yacht Crew
If you are hiring a nanny, butler, house manager or yacht crew through an agency, the fee is part of the cost of the hire. Here is how fees usually work, what you should expect to pay for, and what candidates should never be charged.
Who pays
The employer pays the agency. The family, family office, yacht owner or management company pays for the search. The candidate does not.
- UK: under the Employment Agencies Act and the Conduct of Employment Agencies and Employment Businesses Regulations 2003, agencies may not charge workers a fee for finding them work, apart from a few listed occupations such as performers. The rules do not set what agencies charge employers.
- Yacht crew: under the Maritime Labour Convention (MLC 2006), no fee for recruitment or placement may be borne by the seafarer. The exceptions are the cost of personal documents such as a medical certificate, seafarer’s book or passport.
If a candidate tells you an agency charged them to be put forward, treat that as a warning sign about the agency.
When you pay
- Contingent (success-based): you pay only when a candidate you choose is placed. This is the most common model for household staff and yacht crew.
- Retained: part of the fee is paid upfront to secure a dedicated search, usually for senior or confidential roles.
- Temporary and relief placements: often charged by the day or week while the person works for you.
How the fee is set
There is no fixed industry rate. For permanent household placements, agencies commonly charge a percentage of the candidate’s first-year gross salary. For yacht crew, fees are often linked to a month’s salary. Ask any agency for its terms in writing before the search starts, and check:
- Whether the fee is based on gross salary only, or on the whole package.
- When the fee is due: on acceptance, on the start date, or after a trial.
- What happens if the placement does not work out.
- Whether there is a minimum fee.
Replacement guarantees
A replacement or rebate guarantee protects you if a placement ends early. Check how long it lasts, whether it gives a free replacement or a partial refund, and what ends it (for example, a change in the job or late payment).
How Lighthouse Careers charges
- No upfront fees. You pay only when we place someone.
- Free replacement guarantee. If the placement does not work out, we replace them at no charge.
- Terms agreed with you in writing before we start.
- Candidates never pay us.
We share our terms directly with each client rather than publishing them.
Ready to hire?
Tell us the role and we send a shortlist of vetted, reference-checked candidates within 24 hours. See our household staffing agency and yacht crew recruitment pages, or check what each role costs in our household staff costs and superyacht crew costs guides.
Frequently asked questions
Do nannies pay agency fees? Not in the UK, where agencies may not charge workers a fee for finding them work. The family pays.
Do yacht crew pay agency fees? They should not. Under MLC 2006, seafarers must not pay for recruitment or placement, apart from personal documents such as a medical certificate or passport.
Do I pay if I don’t hire anyone? With a contingent agency, no. With a retained search, the upfront part is usually not refundable.
Does Lighthouse Careers charge upfront? No. You pay only when we place someone, and every placement comes with a free replacement guarantee.