How to make sure your processes protect you in the recruitment industry
The latest instalment in our series of case studies details another scenario of How to help recruitment firms get paid when a client employs a candidate directly.
As previously employed as a Credit Manager by a national recruitment and working for many recruitment firms since setting up CMG UK I have a vast amount of experience in making sure our clients get paid.
Backdoor hiring- episode 4
The Company– Legal Firm
The Role– Conveyancing Solicitor
Our Client spoke to the managing partner of the Company as they were aware someone had left the Company and there may be a vacancy. The MD said they were recruiting and asked our Client to speak to the Company’s Office Manager who in turn requesting our client submits 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. The candidate was subsequently found working for the company.
The Company disputed our client’s fees for the following reasons
- Company policy states they do not use recruitment firms
- The Office Manager did not have the authority to enter into an agreement
- The candidate contacted the Company directly therefore her introduction was not made through our client
- The candidate was not under contact to our client.
Although we responded fully on the above points, the Company maintained their position and a court claim was issued.
The Companies Defence made reference to additional points:
- Our client’s terms and conditions were not referenced in the body of the email sending the CV, therefore cannot 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 are:
- The conversation with the managing partner and subsequent emails with the Office manager showed that the company was open to an approach by a recruitment firm
- Irrelevant that the Office manager did not have authority, that’s an internal matter for the Company to deal with, however the initial conversation with the managing Partner contradicts this statement
- Irrespective of the Candidate putting her CV directly to the company after the original introduction, our client’s terms and conditions stand
- Candidate was not under contract to our client; however, the Company was when they employed the candidate
- Although our client’s terms and condition where not refenced as being attached in the body of the email, the attachment was clearly labelled “main terms and Conditions” so there can be no doubt they were made known to the Company.
- We could prove our client did comply fully with its obligations under The Conduct of Employment Agencies and Employment Businesses Regulations 2003
The Company 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 to the terms being attached to the email in the body of the email.
- 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 like the above we can provide a review of your systems and processes and assist you to strengthen underperforming areas as well as coach your staff to ensure you will always get paid for any back door hiring as well as promoting best practice.
We can also assist you with specific back door hiring debts as well as general credit control. Please contact us to see if we can help 03332 413 203. contact@cmgroupuk.com
