Employee referral policy template

An employee referral policy sets clear ground rules for recommending talent: who is eligible to participate, how to submit candidates, how duplicate claims are handled, and when bonuses are paid. Adapt this template for your company and have your HR and finance leads review the final text.

When to use this template

Use this template when launching or formalising an internal referral program. Publish the approved policy on your internal wiki or handbook so employees understand how referrals are credited and paid.

Use it in OneATS →

Template

[Company name] — Employee Referral Policy

1. Purpose
We believe our team members are our best ambassadors for attracting outstanding talent. This policy rewards employees who recommend qualified candidates who are subsequently hired.

2. Eligibility
All regular, full-time employees are eligible to submit referrals, with the following exceptions:
• Members of the People / Talent Acquisition team involved in hiring for the role
• Direct hiring managers or interview panel members for positions within their immediate reporting line
• Executive leadership (C-suite / VP-level)

3. Eligible Roles
Referral bonuses apply to active, full-time regular job openings listed on our company careers page, unless a specific role is designated as non-bonus eligible.

4. How to Submit a Referral
To receive credit for a referral:
• Share your unique employee referral link with the candidate, or
• Submit the candidate's name, email, phone number, and CV link through the employee referral portal before they apply independently.

5. Ownership and Duplicate Rules
• Ownership Window: Referral credit remains active for [6] months from the date of submission.
• First-Referral Rule: If two employees refer the same candidate, the employee whose referral was logged first within the active ownership window receives credit.
• Direct Applicants: If the candidate has already applied to an open role in the preceding [6] months, the referral is ineligible for a bonus.

6. Bonus Structure
Referral bonuses are tiered according to role seniority:
• Junior / Entry-level roles: [₹25,000 / $500]
• Mid-level / Technical roles: [₹50,000 / $1,000]
• Senior / Leadership roles: [₹1,00,000 / $2,000]

7. Payout Schedule and Terms
• Payout Date: Referral bonuses become payable [90] days after the referred employee's official start date.
• Employment Requirement: Both the referring employee and the referred hire must be actively employed and in good standing on the scheduled payout date.
• Payment Channel: Bonuses are processed via normal payroll and subject to standard statutory tax withholding. Check with your payroll and finance department for regional tax guidelines.

8. Exclusions
No referral bonus is payable for:
• Former employees rehired within [12] months of departure
• Candidates submitted through external staffing agencies or search firms
• Temporary, contract, or intern conversions

9. Policy Changes
The company reserves the right to modify, pause, or terminate this referral programme at any time with prior notice.

How to use this template

Keep the duplicate ownership window clear (typically 6 months) to avoid disputes.
Specify that bonuses are paid through payroll with applicable statutory tax deductions.
Give employees personal referral links so source attribution is automated.
Update employees on their referral's pipeline progress to keep engagement high.

Mistakes to avoid

Leaving payout timing vague: specify the exact milestone (e.g. 90 days after joining).
Allowing hiring managers to claim bonuses for hiring direct reports into their own teams.
Failing to record who referred first when multiple colleagues know the same candidate.

Send it from OneATS

Run this policy in OneATS: personal referral links for every employee, automatic duplicate resolution, pipeline status tracking, and bonus payout dates. Employee referrals in OneATS.