Employee Referral Policy

Provide guidelines to your employees with respect to referral of candidates for any open job opportunities in the organization.

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Employee Referrals are a source to hire good and suitable candidates. The objective of this policy is to provide an opportunity to our employees to refer suitable and trustworthy candidates for available positions in our organization.

This policy template is available for download in Word format.

With this Employee Referral policy template, you can:

  • Create a policy structure on how to refer candidates for open positions
  • Define procedures for submitting such referrals
  • Outline benefits of the program and how payments will be done

In just a few minutes, you will be able to set up a policy that covers most of the necessary information required. This policy covers rules to be followed with respect to:

  • Criteria for referring candidates
  • Payment steps and methodology
  • Communication process
  • Which Department in the organisation will bear the cost and lots more…

Employee Referral Policy


Great people usually associate with other great people. Hence, as an organisation, we are widening our hiring focus to expand through our most valuable channel of communication – you, our own employee.

Employee Referral is a source to hire good and suitable candidates. The objective of this policy is to provide an opportunity to our employees to refer suitable and trustworthy candidates for available positions in our organisation.

Scope and Applicability

The Employee Referral Program is open to

  • All employees up to Assistant Manager Level
  • All Support Function members (Excluding Recruitment Team)

Let us call it RAW… Refer and Win program. You refer great candidates, and the organisation gets greater quality hires, enabling the Company to win.

In turn, a cash reward can be yours if the person gets hired. So, you also WIN!

This policy is owned by < Name of the Person > and reachable @ < Contact Number > and < email address >


How Do I Get My Referral Bonus

Referral bonus is payable through payroll and is subject to appropriate taxes. < xx > % of the bonus will be paid to eligible employees post the referred candidate completes one month in the organisation. The remaining < xx > % of the amount becomes payable after the referred candidate completes < xx > months of successful employment or end of probation period and successful employment.

Referral Bonus Payment Criteria

Payment is made when the following criteria have been met:

  • The referee must be employed and not serving notice period at the time of payment.
  • Referred applicant must be on Company rolls showing no inclination to resign or not serving notice period at the time of payment.

Referral Criteria

  1. In case of candidates being referred by a senior for his/her own team
  • The candidate will be interviewed by an interview panel that would not include the same team individual who has referred him/her.
  • The candidate, if shortlisted, would not be assigned to report to the individual who has referred him/her. (Unless under exceptional circumstances and approved by Management)
  1. There is no limit to the number of applicants an employee can refer. However, it is advised to conduct a bit of background check of the candidate before they are referred to HR. Also, the candidate should fairly know the name and details of the employee who has referred him or her. Please ensure you share your name and employee number with the candidate.
  2. In the event an applicant is referred by more than one source; for example, by two employees, or an employee and an employment agency, the deciding factor will be the date and time of receipt of the referral within the HR department.
  3. All referrals must be qualified leads. Therefore, the referrer must be able to provide the first name, surname, phone number & email address of the person they are referring to.
  4. A referral will not be eligible if a candidate has already been assessed for a role in the last six months.
  5. A referral is not eligible if already connected or had been in contact with a member of the Talent Acquisition team within the last 6 months.

How do I Refer a Candidate

Employees can send in the resumes of eligible candidates to the following email id: (…………………) with the “Referral CV – Position Name” in the subject line along with their own name, employee id and department.

Policy Terms & Conditions

This policy can be revised as per the discretion of < Company Name Here > The cost of bonus will be borne by the department where the candidate will be joining.

Special Circumstance and Exception

This policy is not applicable to Senior management team members and the recruitment team. This policy will not be applicable for internal IJP. Any Deviation from this policy has to be approved by HR. Any changes to the policy has to be approved by Legal and Compliance.

Non-compliance and Consequence

Any non-compliance to this policy will be dealt with on a case-to-case basis and appropriate action will be taken by HR. Employees must refrain from unethical practices while referring candidates. Appropriate disciplinary action will be taken against the referrer in case of such incidents, and no RAW incentive will be paid. If it is already paid to the employee, the Company reserves its right to recover the same from the employee either through payroll or other modes of payment.

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This template is meant to provide general guidelines and should be used as a reference. This is not a legal document. greytHR will not assume any legal liability that may arise from the use of this template.
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