Loophole in recruitment agency terms of business

We have noticed a trend in recent months of companies using a flaw in recruitment agency terms of business to get out of paying engagement fees or temp to perm fees.
If, like the majority of recruitment agencies in the UK you are using terms of business from one of the two leading associations, then you should be aware of a loop-hole in the terms:
Agreements from both of the leading recruitment sector associations state that the recruiter’s introduction must have led to the engagement, i.e. it must have been the ‘effective cause’ of the engagement. This means that your customers can claim they already knew the applicants, they found them independently on a portal, that another agency introduced them, or even simply that there was a few months’ delay between the agency introducing the candidates and them being hired. Any of these excuses can be used successfully in court by the customer to get out of paying your fee.
Sterling have put together a ‘drop in clause’ to tighten up your terms of business, and more useful advice to help protect you and ensure you get paid. You can see more information, tips, and even useful letter templates on our website here: https://sterlingdebtrecovery.com/recruitment-agency-terms-of-business/
Sterling Debt Recovery specialises in collecting debts for recruiters, working with over 250 recruitment agencies on a commission only basis as and when they need help getting paid.
If you need any further advice, would like our solicitor to tighten up your agreements, need help collecting a debt, or would like us to find your back door cases, then email us or give us a call on 0207 1005978.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More