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Recruitment Backdoor hiring- episode 4

Recruitment - back door hiring

The 4th instalment in our series of case studies to help recruitment firms get paid for a back door hire. 

This case study highlights the importance of making your terms known to your customer, so you can demonstrate acceptance by conduct.

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 – Legal Firm

The Role– Conveyancing Solicitor

Our client spoke to the Managing Partner of the debtor as they were aware someone had left the debtor’s employment and there may be a vacancy. They asked our client to speak to the debtor’s Office Manager who in turn requested our client submit a CV of the candidate, as they sounded ideal for the position. Once the CV was received, the Manager said they would review the CV and respond if they were interested in taking the matter further.

Three months later our client became aware that the candidate had been employed by the debtor and raised and invoice for their fees.

The debtor disputed our client’s fees for the following reasons

  1. The debtor’s policy states they do not use recruitment firms
  2. The Office Manager did not have the authority to enter into an agreement
  3. The candidate contacted the debtor directly therefore her introduction was not made through our client
  4. The candidate was not under contract to our client.

Although we responded fully on the above points, the debtor maintained their position and a court claim was issued.  

The debtor’s defence made refence to additional points:

  • Our client’s terms and conditions were not referenced in the body of the email which contained the CV, therefore  could not be relied upon
  • Our client did not fulfil its obligations stipulated in ‘The Conduct of Employment Agencies and Employment Businesses Regulations 2003’. Therefore, our client’s introduction of the candidate was not ‘Effective Cause’ for the subsequent employment of the candidate.

In Line with the Court’s pre-action protocols, we assisted our client to produce a witness statement and all supporting evidence to prove their case. The answers to the defence were:

  1. The conversation with the Managing Partner and subsequent emails with the Office Manager showed that the debtor was open to an approach by a recruitment firm
  2. It is irrelevant that the Office Manager did not have authority, that’s an internal matter for the debtor to deal with. Furthermore, the initial conversation with the Managing Partner contradicts this statement
  3. Irrespective of the candidate putting their CV directly to the debtor after the original introduction, our client’s terms and conditions stand
  4. The candidate was not under contract to our client; however, the debtor was under contract with our client when they employed the candidate
  5. Although our client’s attached terms and conditions were not referenced in the body of the email, the attachment was clearly labelled “Main Terms and Conditions”. Therefore, there can be no doubt they were made known to the debtor, for the debtor to accept them by conduct.  
  6. We could prove our client did comply fully with its obligations under ‘The Conduct of Employment Agencies and Employment Businesses Regulations 2003’

The debtor paid the full amount claimed including interest to date, 1 week before the hearing.

Important points

  • Make sure you always send your terms and conditions with any CV’s, and refer, in the body of the email, to the terms being attached.
  • Be aware of the ‘Conduct of Employment Agencies and Employment Businesses Regulations 2003’ – and be able to prove you have complied with these regulations if challenged

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.