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Recruitment Backdoor hiring- episode 2

Credit management Back Door Hiring Recruitment

This is our next instalment in our series of case studies to help recruitment firms get paid for back door hires. 

In this instalment, we show that it is important to have processes in place to capture all information to use as leverage to get paid.

As previously employed as a Credit Manager by a national recruitment firm and working for many recruitment firms since setting up CMG UK, we have a vast amount of experience in making sure our clients get paid.

The Debtor – International professional services firm operating in property and construction sectors

The Role– Cost Consultant/Project Manager

Our client was an approved supplier to the debtor and had access to the debtor’s portal to load new CV’s onto. Our client was bound by the debtor terms and conditions.

After being made aware of a new role by the director, our client uploaded  a CV of an ideal candidate for the role. This CV contained the candidates personal email address as well as contact telephone numbers. The CV was accepted by the portal, meaning it could not be a duplicate submitted by another recruitment firm.

Shortly after submitting the CV, our client discovered the candidate had been employed by the debtor and submitted an invoice. The debtor refused to pay the fee saying our client’s invoice was disputed.  

Despite a well worded Letter Before Action setting out what our client would rely on in court, the debtor would not agree to make payment or negotiate. Our client was then left with no other option than to file a claim in the County Court.  

The debtor filed a defence to the claim stating:  

  1. They had previously been in contact with the candidate prior to our client submitting the CV on the portal.
  2. The role the candidate was engaged for was a different role than our client submitted the CV for.

Mediation was agreed by both parties. We argued the following points against the debtor ’s defence

  1. The only proof provided showing that there was a pre-existing relationship with the candidate was an unsolicited message sent through LinkedIn from the debtor to the candidate. This message was not responded to by the candidate. Our client provided the debtor with the candidate’s personal contact details which we considered  ‘Effective Cause’ for the subsequent recruitment of the candidate.  
  2. The debtor ’s terms and conditions stipulated that they covered any and all persons offered to the debtor via the recruitment portal. Therefore, contradicting their defence that our client could only claim for recruitment for the specific role they submitted the CV for.

Settlement of our Clients invoice was agreed.

Important points

  • Make sure you are fully aware of your customers terms and conditions and their implications if you agree to be bound by them.

If you are currently experiencing a situation such as described in this series of blogs, you might want to consider outsourcing your credit control to us.

We can also provide a review of your systems and processes and assist you to strengthen underperforming areas. Furthermore we can coach your staff to ensure you will always get paid for any back door hiring, whilst also promoting best practice. We can also assist you with specific back door hiring debts

Please contact us to discuss our services further on 03332 413 203.

Look out for our next case study with more advice to help you get paid for back door hiring.