Referral Policy Template

Referral Policy

Purpose of Referral Policy

The Referral Policy exists to encourage employees to refer qualified candidates to [Company Name], support efficient recruitment, and reward employees who help attract talent. This policy defines eligibility, submission and approval steps, reward conditions, and responsibilities for referrals made to [Company Name].

Scope

This policy applies to all employees of [Company Name] unless otherwise noted in local terms of employment. Contractors, temporary workers, and third parties may be subject to different referral arrangements as defined by HR.

Eligibility

Employees are eligible to participate in the referral program subject to the following rules:

• Referrer must be an active employee of [Company Name] at the time of referral submission and at the time the referral reward is paid.
• Referrals must be external candidates who are not already in [Company Name] recruitment pipelines or current employees.
• Senior HR staff, members of the recruiting team, and employees directly involved in the hiring decision for the referred role may be ineligible, as specified by HR.
• Referrals of former employees are subject to eligibility rules in the program and may be excluded if previously employed within a defined period.

Referral Submission and Process

To submit a referral, employees must provide candidate details through the designated referral channel or form established by HR. Submissions must include accurate contact information and details of the relationship to the candidate.

HR will acknowledge receipt and track the referral through the hiring process. A referral is considered valid when submitted prior to the candidate applying directly or prior to HR sourcing the candidate.

Referral Rewards and Payment

Referral rewards, amounts, and payment schedules are set by [Company Name] and published by HR. General conditions include:

• Reward is payable only when the referred candidate accepts an offer and completes the required post-hire period, for example the probation period defined by the role.
• Payment will be processed through payroll after verification that conditions for payment have been met.
• If multiple employees refer the same candidate, HR will determine eligibility for reward according to the date of submission and program rules.
• Rewards are subject to applicable tax and payroll withholding in accordance with company practice.

Approval Process

Referral approvals follow these practical steps:

• Employee submits referral via the formal referral form or HR system.
• HR confirms receipt and records the referral.
• Hiring manager evaluates the candidate and coordinates interviews with the recruitment team.
• HR verifies candidate eligibility and documents the hiring decision.
• Payroll issues payment following confirmation that the candidate has met employment and retention conditions.

Exceptions or expedited approvals must be requested in writing to HR and require documented justification and sign-off from HR leadership and the hiring manager.

Role of Managers and HR

Managers are responsible for objectively evaluating referred candidates, ensuring fair selection, and documenting recruitment decisions. Managers must avoid favoritism and follow standard selection procedures.

HR is responsible for administering the Referral Policy, maintaining records, confirming eligibility, coordinating approvals, and processing payments with payroll. HR will also review and update program rules and communicate changes to employees.

Confidentiality and Data Protection

Information submitted as part of a referral will be handled in accordance with [Company Name] data protection practices. Employees must not share confidential candidate information outside the normal recruitment process and must ensure referrals comply with privacy expectations.

Non-Compliance

Non-compliance with this policy may result in disqualification from the referral program and denial or recovery of rewards. Examples of non-compliance include submitting false information, attempting to influence hiring decisions improperly, or breaching confidentiality.

Serious or repeated breaches may lead to disciplinary action in line with [Company Name] disciplinary procedures, up to and including termination of employment.

Recordkeeping

HR will maintain records of referrals, approvals, and payments for audit and reporting purposes. Records will be retained according to company retention schedules.

Note

This Referral Policy may be updated periodically. Employees will be notified of significant changes. For questions or clarification about the Referral Policy, employees should contact HR.