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Client owes £5k

Hi guys,

Not sure if I am posting in the right section but this is related to employment and recruitment.

I recently set up a recruitment consultancy. I found temporary work for two candidates (jobseekers). Both working at the same place. After 3 weeks they both emailed me on the same day informing me that they would no longer be working as one of them as found work elsewhere and the other due to personal reasons. I contacted the Client (employer) and apologised that the candidates will no longer be working and I can provide further candidates if needed. I was told by the client that the candidates' contracts had ended. This didn't make sense and it all seemed to much of a coincidence. I suspected that the client had told the candidates to make up some excuse so that they will no longer be working temporary though my agency and that the client will take them on permanent. I visited the client's office and my suspicion was correct - both candidates were now working permanently with the client.

The client agreed to my terms and conditions before I found the candidates. The client did not actually sign the terms and conditions because their fax machine was not working, however the client emailed me stating that they accept the terms and conditions and that this email is acknowledgement of this acceptance. Now in my Ts and Cs it states that if the client takes on the candidate within 12 months then they will owe 250 x the current hourly rate. My terms and conditions also states that the client should notify my agency if they are to employ the candidates on any basis other than which was previously agreed - the client did not do this. The client has failed to follow the terms and conditions that they agreed and owe approx £5000.

How can I go about obtaining this. Who can I contact to help if they do not pay. They also need to still pay the three invoices for the three weeks that the candidates were employed through my agency. The first of these invoices is due in a few days time. Shall I wait to see if they pay these invoices and then question them about this sly and unprofessional stunt they pulled to employ my staff on a permanent basis and lying to me that they are no longer required?
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Comments

  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Have you now had official confirmation that they are working there permanently now?
    If so, I think I would ignore the fact that they didn't let you know properly and invoice them accordingly.

    Along the lines of...

    "We are glad that you were impressed with our candidates and have offered them permanent positions. Please find invoice enclosed as per the agreed terms and conditions.
    If you have any vacancies in the future then please contact us and we will endevour to provide candidates of the same calibre again."
  • harry112
    harry112 Posts: 61 Forumite
    Have you now had official confirmation that they are working there permanently now?
    If so, I think I would ignore the fact that they didn't let you know properly and invoice them accordingly.

    Along the lines of...

    "We are glad that you were impressed with our candidates and have offered them permanent positions. Please find invoice enclosed as per the agreed terms and conditions.
    If you have any vacancies in the future then please contact us and we will endevour to provide candidates of the same calibre again."

    Well I walked into their reception and next to the reception was the clocking in cards!! Both my candidates had their own clocking in cards. They both have very distinct and unique names and I am 100% certain it is them Also, I have paid the candidates from my own pocket and I am waiting for the invoices to be paid. When the candidates would ring me enquiring about their money, once would ring around two minutes after the other. I also got calls from the company they work for and immediately after the candidate will ring.

    I was planning to wait for all the current invoices to be paid and then contact them telling them that it has come to my attention that the candidates have been employed on a permanent basis and the terms and conditions have been breeched. But I think I will go along the lines that you wrote above. If they do not pay shall I threaten them with legal action? Small claims court? Debt collecting agency? They are not some small organisation. They are a well establised organisation with a few branches, employing around 20 staff in this once location.
  • harry112
    harry112 Posts: 61 Forumite
    The client will not confirm that the candidates are working permanently but I know for a fact that they are.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Small claims court, I would guess.

    Please note that I am in no way qualified to give advice here. While this is what I would do I have had no experience of the situation...
  • As stated, I would invoice directly as you would if it had been known. If they don't pay, unfortunately your only option is small claims court for this. But the threat may be enough to make them pay anyway.

    I'm not sure how enforceable your type of contract is in law but it seems standard among most recruitment agencies. Maybe you should ring a couple of other agencies and ask them for their opinions.
  • Zazen999
    Zazen999 Posts: 6,183 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Invoice
    Then request for them to pay
    Then letter before action
    Then small claims court.

    Before you do, go back into reception and get a photo of those clocking in cards.

    But you actually have to invoice them first!
  • I wouldnt say the clocking in cards are enough. It could simply prove poor management and they forgot to remove them. Get proof first then send off a letter.

    One comment though would be what terms did the candidates agree too as if its none I think you may have limited rights as you without a contract with them can't restrict their trade and even then some restrictions are hard to enforce.
  • harry112
    harry112 Posts: 61 Forumite
    edited 29 April 2010 at 11:58PM
    The clocking cards were for week ending 30th April and the candidates told me they can no longer work two weeks ago...
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    harry112 wrote: »
    The clocking cards were for week ending 30th April and the candidates told me they can no longer work two weeks ago...

    The following terms and conditions were breached:

    4. If,
    :eek::eek::eek: Go back and edit your post, you idiot. Your T&C's identify you. As for taking the company to court, you need to read up on Discovery. This allows you to demand information from the employer [eg payroll records] which proves your case You can call on your candidates as hostile witnesses and get them to lie on oath that they have not been taken on or hopefully to tell the truth.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Weirdlittleman
    Weirdlittleman Posts: 412 Forumite
    edited 30 April 2010 at 9:27AM
    harry112 wrote: »
    The clocking cards were for week ending 30th April and the candidates told me they can no longer work two weeks ago...

    The following terms and conditions were breached:

    4. .

    Yes but these terms are with the client not the staff. You cant enter into contracts that restrict them without their consent which arguably you did.

    Did you have them agree to terms barring them from working outwith your agency for a client unless it was done formally through you.

    If not I would suggest your terms potentially wouldnt stand up in court.
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