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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46774
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I run a recruitment business. A client was recommended to us

Customer Question

I run a recruitment business. A client was recommended to us and engaged us to act on their recruitment. We have signed terms of business. We submitted a candidate who they rejected 6 months ago via another agency. We were unsuccessful in placing the position as they engaged another candidate.
A couple of weeks later the client contacted us stating that the hire had not gone ahead as the candidates references were not good. They changed the job specification and we contacted the candidate again that they rejected 6 months ago.
The client did a 1st, 2nd and 3rd interview with the candidate. He was offered the role and started with the hiring company on 25th April 2016.
We confirmed that the candidate had started that day and on receipt of the client's confirmation issued an invoice. We have an email from the client accepting the invoice and stating they will pass to accounts for payment.
Yesterday 3rd May we get a call from the client stating that the other agency had contacted them about their introductory fee for the candidate we have placed. Our client tells us that the competitor recruitment agency terms state that any candidate they introduce who is hired within 12 months of introduction will result in a fee.
Our client has not signed these terms. We were also not privy the the agreement that they had made with the other agency and have worked incredibly hard on this position.
Recruitment agency standard terms of introduction are 6 months. In 25 years of recruitment I have never heard of 12 months. The client has not signed the other agencies terms but have signed ours.
We have said our fee is payable. At no point were we privy to the competitors terms and at no point during the recruitment process did the client raise this as a concern.
I am assuming they are at fault for not checking terms already in place before coming to us and now face the possibility of 2 bills for the same candidate.
Advice would be appreciated. We are based in the UK.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Ben Jones replied 1 year ago.
Hello how much is owed?
Customer: replied 1 year ago.
£3,500 + VAT
Customer: replied 1 year ago.
This is what the other agency sent the client:
From: ***** ***** [mailto***@******.***]
Sent: 03 May 2016 16:00
To: ***** *****
Cc: ***** *****
Subject: Re: Laurie GloverHi Sophie,Please find attached a copy of the terms as requested. The signing of agency terms is not standard practice as acceptance of the T’s & C’s is generally always covered within the terms – please see clause 5 as below. These terms were presented to Sarah when we initially met on 29th Apr 2015 to discuss your requirement for a Marketing Manager.As you know Laurie was formally introduced to you by email and which resulted in you conducting a telephone interview with him on 15th Sept 2015 so from the terms of our T’s & C’s a fee is due as covered in cause 6 as below. If you have any further questions please let me know.5. Acceptance of Terms and Conditions
5.1 These Terms and Conditions are deemed to be accepted by the Client by virtue of an Introduction to, or the Engagement of an Applicant or the forwarding of any information relating to the Applicant to any third party following an Introduction.6. Notification, Fees and Payment Terms
6.1 The Client agrees to inform the Company verbally, on the same working day, of any offer to any Applicant presented by the Company including the provision of details of the remuneration. The Client agrees to formally notify the Company in writing of the terms of the Applicant’s employment, including annual gross remuneration, within 2 working days of the verbal offer. This obligation remains in place until 12 months from the initial introduction of the Applicant by the Company. Should the Applicant be initially rejected or the Applicant rejects the offer and is subsequently offered and accepts an offer within 12 months of the initial introduction then the Client shall be liable to inform the Company within 5 working days and pay the appropriate fee as per the standard Terms and Conditions.Kind Regards,
***** *****
Client Manager / Director
Customer: replied 1 year ago.
Our terms are as follows - these have been signed by the client on behalf of their business.
5. INTRODUCTIONS
5.1. Introductions of Applicants are confidential. The disclosure by the Client to a third party of any
details regarding an Applicant introduced by New Recruit UK Limited which results in an
Engagement with that third party within 6 months of the Introduction renders the Client liable
to payment of New Recruit UK Limited’s fee as set out in clause 3.4 with no entitlement to
any refund.
5.2. An introduction fee calculated in accordance with clause 3.4 will be charged in relation to any
Applicant engaged as a consequence of or resulting from an introduction by or through New
Recruit UK Limited, whether direct or indirect, within 6 months from the date of New Recruit
UK Limited’s Introduction.
5.3. Where the amount of the actual Remuneration is not known New Recruit UK Limited will
charge a fee calculated in accordance with clause 3.4 on the minimum level of remuneration
applicable for the position in which the Applicant has been engaged with regard to any
information supplied to New Recruit UK Limited by the Client and/or comparable positions in
the market generally for such positions.
6. LAW
6.1 These Terms are governed by the law of England & Wales and are subject to the exclusive
jurisdiction of the Courts of England & Wales
Signed ………………………………………………………..
Date ………………………………………………………….
Position ……………………………………………………...
on behalf of Company ……………………………………………………
Expert:  Ben Jones replied 1 year ago.
Thank you. There will be two separate agreements here – one between you and the client and one between the other agency and the client. Both will be completely independent from each other. So in effect the client could become potentially liable to both of you under the terms of each agreement. However, in the circumstances it is unlikely that they will pay you both so they are likely to choose one agency and ay them leaving the other empty handed. The affected agency could then consider making a claim for the money owed and when this comes for consideration in front of the court, they will look at which agency was the most likely introducer of this employee. In effect they will take an objective view and look at what happened and consider whether one agency’s actions and involvement was more likely attributable to the permanent employment of the person. Just because one agency had introduced this client in the past and subsequently they were re-introduced by another agency does not mean that the initial agency would be the one which materially influenced the introduction. So in the circumstances I would say that you have a better chance of getting the fees than the other agency because you are the agency which had a material involvement in the permanent appointment of this person. This is your basic legal position. I have more detailed advice for you in terms of some relevant case law and the steps you can take to progress this further, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there I no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46774
Experience: Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
Ben Jones and other Employment Law Specialists are ready to help you
Customer: replied 1 year ago.
Any further advice would be appreciated as I need to draft them a letter / email to confirm our position. Thank you very much for your help this is a rather stressful time.
Expert:  Ben Jones replied 1 year ago.
Thank you. Some detailed and relevant reading can be found here: http://www.debenhamsottaway.co.uk/news/2014/04/perm-fees-does-an-employment-agency-need-to-be-the-effective-cause-of-the-introduction As to taking this further in the event they refuse to pay, whenever a dispute arises over money owed by one party to another, the debtor can be pursued through the civil courts for recovery of the debt. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps: 1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the debtor to voluntarily pay what is due. 2. Letter before action – if informal reminders have been sent but these have been ignored, the debtor must be sent a formal letter asking them to repay the debt, or at least make arrangements for its repayment, within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to recover the debt. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action. 3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed it will be sent to the debtor and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this. Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far.
Customer: replied 1 year ago.
Thank you
Expert:  Ben Jones replied 1 year ago.
You are welcome, all the best
Customer: replied 1 year ago.
Thank you Ben for your help.
Expert:  Ben Jones replied 1 year ago.
Hi, sorry did you mean to reply on the other thread (the one from today?)

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