Recruitment consultants: are you owed fees?
It is common in the recruitment industry for a candidate to be introduced to an employer by a recruitment agency, and subsequently to be employed directly by the employer, trying to avoid the recruiter’s fee.
This is always a risk when introducing third parties so it is crucial that you have watertight terms in place before that introduction is made to protect the recruitment fee.
Make sure you have standard terms and conditions in place, that they apply to the introduction and that any variation to those terms (for example, discounted fees) are properly recorded.
Additionally it is always a good idea to keep records of what was agreed, in person or over the phone, and to confirm in writing anything agreed verbally.
Already in dispute?
If the horse has already bolted, there are still steps you can take to recover your fees. Employers will often hope to wear you down – and here are some of the typical responses we see:-
“The appointment wasn’t due to your introduction”
“This isn’t an engagement. The person is working for us for free”
“We never agreed a contract with you in writing”
“We employed the candidate in a different position to the one we discussed”
“The candidate approached us directly”
All of the above arguments can be overcome with well drafted terms and clear evidence.
- Breach of contract
- Trade disputes
- On-line traders
- Supply of defective goods/services
- Claims under personal guarantees
- Debt & asset recovery
- Ownership disputes
- Development disputes
- Option agreements
- Boundary disputes
- Adverse possession
- Rights of way
- Enforcing securities
- Restrictions & encumbrances
- Land Registry applications
- Property/estate management
- Service charges
- Payment/certification disputes
- Building defects
- Sub-contractor disputes
- JCT, NEC, RIBA & similar design/build agreements
Landlord & Tenant disputes
- Rent arrears
- Guarantor’s liability
- Recovering possession
- Protected lease renewals
- Breach of covenant
- Disrepair claims
- Unlawful assignment/sub-letting
- Break clauses
- Rent reviews
- Administrators & receivers
- Recovery of recruitment fees
- Disputed cause of introduction
- Candidate suitability
- Dual introducers
- Conduct of Employment Agencies and Employment Businesses Regulations 2003
- Ownership and transfers of equity
- Unfair prejudice claims
- Derivative actions
- Partnership dissolution & winding up
- Bank mis-selling
- SWAPS/LIBOR claims
Protection of Intellectual Property rights
- Domain name disputes/cyber squatting
- Passing off
- Breach of confidentiality
- Copyright and trademark infringement
Making a claim for negligent advice
The client asked us to consider and advise on the conduct of their former solicitors during both of the cases. We careful analysed many files and documents, including the former solicitors’ files, and concluded that the client had a claim.
We pursued the solicitors for negligent advice and handling of the cases, with a view to recovering our client’s losses. This involved extensive dealings with the firm, through their professional indemnity insurers and city lawyers.
They refused to pay the claim, despite being provided with considerable supporting evidence and legal argument during various attempts to negotiate and settle the dispute.
Pursuing the professional negligence case in the High Court
We started High Court proceedings, which the former solicitors defended by denying the allegations and raising a number of technical legal points.
Ultimately we exerted sufficient pressure in the litigation to force a settlement before the case reached trial, resulting in our client recovering a six-figure sum. This represented the vast majority of all legal costs they had paid, as well as Verisona Law’s legal fees.
Individual Property Owner
“Verisona Law dealt with a complicated dispute with a former manufacturing supplier forced into administrative receivership. Their clear, calm advice never wavered: their tenacity and diligence provided our company with a successful result”.
MD of Textile Wholesaler
"Having recently used Verisona Law to help recover a commercial debt due to us, I would highly recommend them. Jeremy was very professional and helpful, giving information throughout the case, and he was also very calm which really helped us."
"I would like to thank you for the first class service we have received from you. Your advice and the professional way you treated us throughout culminated in a result which, prior to your appointment, seemed a long way away."