Octavious
Hr Manager
Praveen Kumar Kambhampati
Director Operations
Sskalra
Sales, Hris, Recruitment, Hr
Radhakrishnasai@gmail.com
Manpower Plg, Recruitment & Selection,
Manasi K
Manager - Admin_ Hr
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
Amishajain
Recruitment
Suresh Gopalan
Recruitment
Skomaravolu
Talent Management, Hr Framework & Policies,
Veena Sudhakar
Recruitment
+10 Others

Thread Started by #Manasi K

Dear Seniors,
We are the new start up company... One of our client Company is continuously giving reasons for non Payment from Last 3 months..... We have also waited for 3 months, but by agreement client was entitle for the payment in 1 month itself...Please guide me what we can do in this case?
Regards,
Manasi
31st January 2011 From India, Pune
Hi Manasi,
I am sorry for your conditions. Right now, you can go for two options:
First, If you have a legal contract having signature of both the parties, you can take legal actions in this case. Take the lawyer's advice.
Secondly, if you do not want to go for the legal procedures you can blacklist this client so that no other consulting company will work for them.
All the best and hope this advice will help you.
Regards,
Chitra
31st January 2011 From India, Pune
Dear Chitra,
Thanks for soonest reply...I don't want to go for legal action right now.
because I have good relations with that client.so, I will go for second option.
thanks for your help.
Can anybody suggest anything else?
I am really very much in trouble right now. :(
Regards,
Manasi
31st January 2011 From India, Pune
Dear Manasi,
Strong follow up is the only solution, keep calling, drop emails, try and meet the executive in person, try and establish contacts with the key decision makers of the client company.
Do this for a month and you will get your money, remember be professional and dont be abusive or aggressive, but be assertive.
Regards
Octavious
31st January 2011 From India, Mumbai
Hey thanks... M taking follow up regularly, but every time he say will release it by end of the month of Jan from last 2 months... But now today is the end of Jan... but no positive response from their end... And the client company is not the same city, that we can meet them up..... I will never be abusive, but I'm tense...
Manasi
31st January 2011 From India, Pune
Dear Manasi,
This is a problem faced by many consultancy who deal with clients who are out stationed.
I suggest you try finding out the key decision makers of the company via some social networking site, and tell them the issue, I believe your client will release the payment on completion of three months of your candidate in the clients office.
Regards
Octavious
31st January 2011 From India, Mumbai
Dear Manasi
also share company name in your social network so other consultancy will not work with that company.by this you can also have profit like they will also share name of these type of company and you will aware from those company.
these type of company always looking for new startup consultancy.
i will also post black listed company name soon.
Regards
kumar
31st January 2011 From India, Delhi
Mansi offer the manager some share for releasing the amount. Some do have the habit of itching palm. They dont tell directly but they do herrass in this way.
Give the person offer he will release in week time. I am sure this will work.
31st January 2011 From India, Mumbai
Hello job_connect_consultancy, What you are suggesting to Manasi is TO BRIBE the HR person. Rgds, TS
31st January 2011 From India, Hyderabad
Hi Friends

Iam also a HR consultant having my own consultancy and having real bad experience. I can openly name my clients who are real cheap players naming themselves as professionals. They all think we are like brokers.The day should come one day, where all the companies understand our importance and they should know that, we are helping hand for them in the business and we are also professionals. Please find below two companies, who cheated us without paying. But enjoyed free service from us.

TULIP IT SERVICES -WE APPOINTED ONE CANDIDATE FOR SALES POSITION FOR 54000/- IN THE YEAR JUNE 2009. TILL DATE THEY HAVE NOT PAID OUR FEE AND THEY CALL THEMSELVES BEST COMPANY IN IT SERVICES. THEIR OFFICE IS IN G N CHETTY ROAD, OPP TO ACCORD...AND THE HEAD HR LADY HALF THE TIME SHE WOULD BE IN LEAVE AND THE ASST.RAGHU HAS NO VOICE THERE. I WAS 8 MONTH PREGNANT,WENT TO THEIR OFFICE ON FOLLOWUP, BUT OF NO USE AND MY DAUGHTER IS 2 YRS.SO BEWARE OF TULIP..........

D2E SOLUTIONS:(DOWN TO EARTH) THEIR OFFICE IS LOCATED IN GUINDY - ALEXANDER SQUARE. VERY CHEAP PLAYERS CALLING THEMSELVES MNC. THEY INTRODUCED THEMSELVES AS BELGIUM BASED MNC COMPANY AND DEALING WITH IPHONE PROJECTS. WE LINED UP LOTS OF CANDIDATES. WE PLACED ONE GIRL FOR HR AND ONE GUY FOR IPHONE DEVELOPEMENT. PUT TOGETHER TOTAL AMOUNT WAS 15000 + 38000.SAME STORY...GAVE US BIG HALWA...SAYING FUND HAS TO BE TRANSFERRED FROM BEGIUM. IF WE LEAVE ALL THIS CHEAP PLAYERS IN THE MARKET, THEY WILL SPOIL INDIA'S NAME AND ECONOMY. THE BY LAWS SHOULD BE SET FOR ALL THESE CHEAP PLAYERS.NOW I HEARD THAT THEY HAVE TAKEN AIRTEL DEALERSHIP...IAM WONDERING HOW A LEADING TELECOM COMPANY CAN GIVE FRANCHISE TO THESE TYPE OF CHEAP PLAYERS....ULTIMATELY..EVERYONE NEEDS MONEY..THEY DON BOTHER ABOUT CODE OF ETHICS.....

ANYWAYS...ALL MUST BE WONDERING IAM EMOTIONAL...THAT IS NOT THE CASE. I WANT TO SHOW THIS WORLD HOW CHEAP PEOPLE ARE...AND SOMEONE SHOULD TAKE INITIATIVE TO FORM A COUNSIL OR FORUM FOR HR BUSINESS. IN INDIA EVEN BEGGERS THEY HAVE ASSOCIATION, BUT UNFORTUNATELY WE DO NOT HAVE ANY ASSOCIATION, WHERE IN WE CAN REGISTER OURSELVES AND MEMBERSHIP CARD IS GIVEN AND SETTING RULES TO MNC'S, THOSE WHO ARE IN VENDOR REQUIREMENT SHOULD FOLLOW THE PROTOCAL AND SIGN THE AGREEMENTS.

WAITING FOR A DAY..WHERE WE WOULD BE RECOGNIZED....

WISHING YOU ALL GOOD LUCK

VEENA
31st January 2011 From India, Madras
So manasi.... Iam sorry to say this...make your mind to face disappointment.but cross your fingers for the better future in hr industry, veena
31st January 2011 From India, Madras
Hey Veena, Didn’t you take legal actions to get your money back against your clients who did not make the payment? Regards, Ashok
1st February 2011 From India, Mumbai
Hi Mansi,
i am also a consultant from mumbai and have such situations many times.You have to learn from experience and make a resolution -never to work with such cos
This is only one part- u will find many clients in future who make u work on assignments but dont recruit from your consultancy-which is wastage of our hardearned time and money.
Sometimes we are helpless as this industry does not have a support system who can help us.There is a recruiters association but i dont think they provide help to small consultants
Anyway best of luck
Regards
Suresh
Mumbai
1st February 2011 From India, Mumbai
Dear Veena and Suresh, thanks for sharing your experience, it will help me to go along......hope I will get my payment in soon time. Thanks all to reply..... Keep in touch... A long way to go me... All your experience and support surely help me a lot in my future business.... Thanks again...
Regards,
Manasi
1st February 2011 From India, Pune
Dear Manasi,
I read your problem and i know that to handling this situation is very difficult for any organization. as we have already experience in this regard too. what we had done that was we forced them to give a post dated cheque for the new date in which they are comfortable. and before depositing cheque in the bank on the maturity date we just intimated them that we are depositing your cheque. and for saving their goodwill in the market they release our payment. so my suggestion is just do the same with your client. may be your problem will be solved out.
Best Regards
1st February 2011 From India, Indore
Dear Friends,

Very interesting discussion going here have any of us wondered why a Chartered Accountant (CA) or a doctor or a lawyer never have complaints of such nature i.e. CLIENT NOT PAYING.

Simple reason that they are professional and have strong body backing them up. Unfortunately we have lot of shady people in our business who proclaim themselves as expert in the field of Manpower placement whereas they are just people who gather resume and sorts them and sent them to client and expect 1 to 1.5 months of candidate's salary. (Is it professorial???)

Forget about the consultant not getting paid what happens if your Candidate do not get paid salary after working for 1 month. What happens to the poor fellow who trusted you and left a job where he was at least secure.

My humble request is that if you cannot get your own payment from the company then please stop playing around with candidates future and please do not enter into the business of placement until and unless you have enough might to fight it out legally with the company(defaulters)

And in case your candidates do not get paid salary by their employer have a fund to pay them and fight with the company on their behalf.

Regards

Kumar
1st February 2011 From India, Mumbai
Mansi,
It often happens. Best method is to build a rapport with the higher ups and persuade them to make the payment saying that you have a cash crunch, long term relationship, etc.... becaz even in very big organizations payments are sometime made even after one year
Rgds
T
1st February 2011 From India, Hyderabad
Dear Friends

Interesting discussion here...

The question (as i understand) is what you should do if someone refuses to Pay for the services as agreed...

As suggested, One can

a) do regular followups

b) take a legal course

c) spread negative word etc

but more important is to move on and don't get stuck there.

We do not have a strong professional association (and cannot have one for obvious reasons) and many times we are at the mercy of either the client or the candidate. Every time some undesired thing happens, we learn and be extra careful with those clients and candidates who put us in trouble in past.

Placement business is similar to a used car sales job. You get commission on every unit sold. You are just transferring the product from one user to another user... The deal is made but they refuse to give you commission, then there is very little you can do against them.. better is to go out and find more deals

Keep following up or take legal action (whatever suits you) and move on...

regards

Saurabh
1st February 2011 From India, New Delhi
Hi,
Please refrain from giving any amount to any manager. Once you do it then gone case. i never appreciate giving or taking bribe to any one for any cause. "once you pay it then it becomes a practice . Again once you take it from any vendor then you loos control or power over that vendor. this is my policy"
i don't know many will agree to this.
1st February 2011 From Qatar, Doha
You have a fan in me Binu John :-)

You have said it rightly.

Only the FIRST step is in one's control--whether it's towards something for a noble cause or taking a bribe or plain murder. Once someone takes the first step, most likely it will never be noticed--whether it's in the positive or negative direction. And that gives the person more urge to move further in the same direction, especially if it's negative--until it's too late to return or even if he/she wants to return, the cost to be paid will quite high--which in all likelihood may have been anticipated by him/her. And in the process, he/she will find/devise ways to make things happen in that direction on a bigger scale. And in the process he/she becomes more brazen so much that they can get away with it--without being caught.

Take the case of any person in the news today [for the wrong reasons]--A. Raja, Ramalinga Raju, Kalmadi, etc, etc....the list could go on. At least Ramalinga Raju admitted in Jan, 2009 when he broke the story of his fraud that it all started with a few lakhs of mismatch in annual audits when they cooked the numbers. And it's now known to all how he did it--quite ingenious one should admit--except that such a brain was used for such devious acts.

Rgds,

TS
1st February 2011 From India, Hyderabad
:-) Agree with you TS, it doesn’t sound well... its just a spur of thoughts You have any other comparison in mind :) cheers
1st February 2011 From India, New Delhi
I never support nor practice bribe.
Its just what I am giving giving my advice to give offer and recover the money. Most HR they give hint to the vendor indirectly to pay the HR certain commission.
Vendor is getting commission for the closure. They know most of the vendors will never go for legal actions.
They just simply herrass the vendor by stopping the payment. Most of the recruiter do not know about the reality that 80 to 90% managers they take money some way. Some say on face and some just give hints.
If the company does not have finance they can issue Post dated cheques also, but they do not do so as its a part of Vendor management.
If your money is stuck will you not like to recover it as early as possible.
If by this approach she recovers her money its totally a business.

1st February 2011 From India, Mumbai
Manasi,
As a start up company you would have to bear with the situations like this especially at the beginning. You should not see that revenue as a life and death need. Keep following up with the client once in a while, and continue to support the client. you would have to wait until you get a clue on why is he deferring the payment. There should be a reason why you are finding the client as a very good one and your organization has a good relationship with the client. Should not get desperate for the payment. It often happens that delays are due to some constraints on the client side. if you could help resolve, it might open doors for more business. be optimistic and continue your support. Understand the Business dynamics better. Good luck.
2nd February 2011 From United States, Ogden
Dear Manasi,
Though u have the legal contract paper, so ask for a mail reply from the concern person. with this two thing u mail /contact the HR head and tell them the issue, I believe your client will release the payment on completion of three months of your candidate in the clients office.
or for more details u can contact me at
Regards
Manaswita Rudra
Manager HR
2nd February 2011 From India, Shiliguri
Dear Manasi,
Here are some steps that could help you avoid similar problems:
1. Do some back ground validation of each potential client through your personal network, contacts, etc.
2. Speak to other vendors or ex-employees on the organization as a whole, lots of info out there that could help you.
3. Being assertive and not bending over backwards for every request from client manager would help you in the long run
4. Be clear on what services your firm can comfortably offer (based on an objective assessment of your own strengths). Do not take on additional work if you do not have the resources to deliver.
5. Make it a point to visit your client atleast 2 times in a year, even the outstation ones, this helps build trust and credibility and also puts a face to the voice on the phone. :-)
6. Lastly see if you can partner with others to basically represent your firm and followup if required.
I hope the above help.
Thx
Shashidhar

2nd February 2011 From India, Mumbai
Dear Manasi,
This delay in payment can be for two reasons-
Firstly, if the company thinks that the person supplied by your firm may not stay for 3-6 months and you being new in business may not replace them free of cost ( according to the clauses in the agreement). They will have faith in you after a few dealings. But this can be explained to them.
The professional behaviour is expected from both ends.
Secondly, if they are facing some payment crisis, you can accept payment in parts.
As suggested by our Super Moderator, one can be assertive but should never be aggressive to the extent of using abusive language in any communication with a client.
Regards.
Prithvi Pal Singh
2nd February 2011 From India, Mumbai
Hi
Legal Option is the Last One...
Take the Person thru Whom u are dealing into confidence, speak with him in detail... tell him since you are new would require funds and this is very important for making day to day operations.
Also inform him paying the bills in stipulated time helps in Good Corporate Goverence and also the Relations...
Murali Prasad
2nd February 2011 From India, Ahmadabad
One of the most commonly faced problems, companies use the service and end up not paying, this is such a shameful situation, and this situation is alike with big and small companies.
I do agree , no matter how bad the response is, maintaining a professional image will always serve good in the long run.
I was wondering is there a common place where one can black list the companies, is there a website that maintains the black listed companies , it could be for various reason. If any one of you is aware of a website or forum where we could blacklist the defaulting companies, please let me know.
2nd February 2011 From India, Bangalore
Dear Manasi,
being start up- it is good that you are learing this early, but unless you are tough for advance and part release the things are likely to happen this way.
as your client is out of station, please go and meet him up by monday (they would be available )not on week ends and just hint him that non payment is taken seriously and being considered for legal action , even if the same thing goes on you do not have alternative but to give notice to client, you can always patch up before filing the case.
regards,
pandu ranga
2nd February 2011 From India, Hyderabad
I do not know whom u r contacting. get in touch with the top man (owner) and express ur concern. try this, this should work.
2nd February 2011 From India, Hyderabad
Hi Manasi
I had faced something similar with an outstationed client. As Octavious has rightly mentioned, you've got to get in touch with the decision makers of the company and explain the situation to them. I got my fee after I spoke to highest authority in the company. Though it would be little difficult, keep trying. While trying to get in touch with the higher authority, dont stop sending followup mails to the person whom you are in touch with. I know its really frasturating...but dont stop trying.
Regards
Amisha
Resource Solutions
3rd February 2011 From India, Bangalore
Hi manasi,
Treat this as a learning tool to deal with diverse situations that come across whether it is non payment of Dues or anything related.I would also suggest you to directly approach the top managing authority. Talk to them in a very professional manner Tell them that this will affect the future relations of the company adversely if no action is taken immediately. This will create an Impact I think.Be very Genuine in your words.Finally i always say "Hope for the Best and Prepare for the Worst' so that you are always well equipped.
Regard
Praveen Dixit
SM
26th February 2011 From India, Pune
Dear Mansi
- Suggest to have the Signed Agreement with the clients before picking up assignments. Sometimes in Hurry and Need of Business it is overlooked.
- Always have the Vacancy Details from the Official Mail id of the Hr / Concerned Person addressing you to work upon.
- Have acknowledgement of the Invoices sent and make continuous followups preferably in Writing.
- As far as this case is concerned, it is advised to make FUP's only.
- Sometimes you need to share the List of Such Organisations in Networking Sites which inturn make the organisation to pay by themselves....
Regds... Murali Prasad ES
8th August 2012 From India, Ahmadabad
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