Exit fees get the axe from top grad recruiters

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It comes three weeks after Gresham announced it is set to be bought by STG Partners, an American private equity firm, for just under £150m.
Gresham’s board said that the “low level of liquidity” on the London Stock Exchange was a key factor in its decision to step away from the public markets.

Graduate recruitment firms are scrapping exit fees as the fight for talent heats up and campaigners call out corporations for ‘trapping’ young people.

FDM and Sparta Global have both axed the charges, which were whacked on workers if they quit before their initial contracts at big banks and City firms ran out. This fee would cover training costs and investment in early careers.

Group ‘Stop Exit Fees Now’ campaigned against recruiters, calling out the unfairness of the policy as it trapped young people in jobs they didn’t enjoy out of fear of hefty fines. The activists called it a ‘scandal’.

A petition was signed by over 6000 people, who called on the government to take action against exit fees.

It is understood that FDM pushed back against some of the details of the petition and said it hadn’t chased grads for fees for a number of years as reported by the Financial Times.

It is understood that AstraZeneca recruiter Kubrick Group is yet to change its policy.