NK SUNDARAM
Soft Skill Trainer / Hr Consultant - India
Anita P Panicker
Sr Hr Executive
Rajeevdixit
Hr , Personnel & Admin
Mani_pooja
Accounts & Hr
Asianmanpowerconsultancy
Hr Franchise Consultant
+1 Other

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Dear Seniors,
I am running a placement consultancy from past 3 months. From past 3 months we are trying hard to choose candidates and get them placed with the related companies. Now when the time comes where candidates have joined and completed the time period required by the companies also, they are not entertaining us.. We have the signed agreement as well.. Please suggest what can be done here..
will look forward for ur response..
Thanks & Regards,
Sarita Sharma
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Hi , It happens with many companies.if you have valid agreement you can sue the company for not paying the payment and recover the amount . Regards Rajeev Dixit
Dear Rajeev,
Thanks for your prompt response, however could u help me with valid agreement which you mentioned... Though we have agreements however if I can get the format for the same, I can get the corrections wherever required..
Thanks & Regards,
Sarita Sharma
Hi Saritha,
I advice you to follow up for the payment due rigorously.
As the legal battle especially in India is not that easy which again will involve your precious time & money for lawyer etc.
Even the Judgement will not be instant though you are perfectly right on legal perceptive.
1.You can add Interest/Penalty for delayed payment in your next agreement
2.You can also give a legal notice as a warning
3.You can also collect a post dated cheque from the client on the date of agreement signed (This is something I thought as innovatively and sure was never practiced before)
Most importantly make sure the quality and type of clients you choose next time.
Hi Sarita,

Most of the time the companies have their own Terms and Condition's, which the consultants have to sign, but you could ask them to add or delete the matter. Sarita if you are not having all the required clause in place it may be difficult to make the company pay your due. Anyways for your future clients you could use the Terms and condition mentioned below, they client may ask for modification, but just be careful, that changes will not effect your earning.

Please include the points mentioned below in your Terms and Condition, as it will help you to get the payment from the client

1) Subject to your compliance with all the terms in this agreement, our professional fees for each candidate referred by Name of your firm and recruited by your organization will be limited to the following:

A) If the candidate selected has experience upto 5years or less 8.33% of the first year's total compensation including value of all components of compensation, perks, performance and other incentives and bonus shall be payable to us.

B) If the candidate selected has experience of more than 5 years 10 % of the first year's total of compensation shall be payable to us. Total compensation shall include the value of all components salary, perquisites, performance incentives, any other incentives and bonuses of any nature.

C) The above rates will apply even if you recruit the candidate for a fixed term.

D) Service tax as applicable (currently 12.24%) is payable.

2. Payment for our professional services is contractually due and accrued to _Name of your firm_ and payable on the date the candidate joins your organization. However we are providing the facility of a credit period of upto 30 days after the candidate joins your organization.

3. Subject to compliance with the terms of this agreement and receipt of our fees and dues within the maximum free credit period, if our candidate leaves your company of his own accord and for reasons not attributable to you within 90 days of joining we will provide resumes of suitable replacement candidates free of charge and arrange your interviews with them as per mutual convenience of yourselves and the candidates.

4. Feedback would be given to us promptly and within 7 days after each stage of the evaluation process and on request from us. You would carry out any telephonic interviews within 7 days after receipt of requested telephone numbers from us. In the absence of communications from you regarding a candidate for a continuous period of 21 days or more we would be free to advise him formally on your behalf that his candidacy for a position in your organization has been rejected by your organization.

However if you at a later date recruit the candidate with / without our knowledge, our fees as described herein are payable along with interest for delay.

5.The official of your organization responding with approval of this agreement would state his/her designation and department and would be an authorized signatory of your organization and responsible for implementing the above terms including making timely payment to us and all correspondence shall be with this designated official of your organization. In the event of any change at your end in respect of the designated official you shall immediately intimate the same to us in writing, to avoid inconvenience.

All the best.

Regards

Anita
Dear Manoj & Anita,
Thanks a ton for your valueble suggestions... It will really help me a lot... Also Anita I will include the terms & conditions which you have mentioned, with our agreements for recruitment..
Thanks again to both of you for the suggestions..
Thanks & Regards,
Sarita Sharma
Hi Saritha, You can also go through this Consulting/Recruitment Services agreement and make required modifications as per your requirements.

Attached Files
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File Type: docx Consultancy Agreement.docx (19.8 KB, 458 views)

You can ask your lawyer to issue a legal notice to your client. Hope you have written communication from your client about the payment part of it. Otherwise, it will be difficult. As some friends have mentioned above, you may have to spend more money on litigation than what your actual dues are !
Henceforth, you have to be very choosy in picking up clients for placement jobs.
Dear Sundram,
Thanks for your valueble inputs here...Could u suggest me something like that to make a valid agreement is it necessary that it should be on stamp papers only or it can be on company letter heads also?
Thanks & Regards,
Sarita Sharma
no stamp paper is required. signed copy from the client's end is good enough. In my own case, clients used to delay payments for six months and beyond. I have now added a clause saying that Rs.10000 should be paid upfront which can be adjusted against the final bill. If they are not willing to this condition, i dont recruit for them. I tell them that I need to pay for naukri or monster upfront, I cannot ask them to wait.. first of system wont work at all without money. Why we should pay first and end up as loser !
You can send an email to my id: . I can mail you to the agreement which you can modify to suit your requirement.,
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