When do you determine the exchange rate date for an international client?

I am a US based recruiter who recently placed a European candidate with an American company who has a European office. My candidate received an offer in Euros and we will charge our client in US dollars.

We have nothing in our contract about "which date" to set the conversion from Euros to US dollars to.

Does anyone know the protocol as to WHEN you should decide the date of the exchange rate between two currencies?

1) The date my candidate signed the offer letter?

2) The date my candidate started working?

3) Or, an average of the two?

This candidate started working on the day the Euro hit a 9-month low and I'm wondering if the more accurate currency conversion date should be the date he signed the contract with the company?

Any advice would be appreciated!!

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Permalink Reply by Sandra McCartt on October 7, 2011 at 12:44pm

The date your candidate started to work. Unfortunately the fee is not due until the candidate starts to work. I don't think it has anything to do with the date to set the conversion. If the Euro had been at a high the day the candidate started you would not have this question.

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Permalink Reply by sabrinadove on November 1, 2011 at 3:15pm

Just a post-morten on this... the client agreed to use a three month historic average of the currency, which is what most businesses use in this situation. It's not "spot exchange" trading.