Dinesh Divekar
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Sidhaarth B
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We are a newly opened recruitment consultancy in mumbai. Its a partnership firm.

Today, i faced a situation with client's.

This is a reputed company in India. We posted an ad on quicker for clients for consultancy, so in response they approached us. After taking this further we send them our terms and conditions. But they didn't agreed on ours standard charges as per the market. Then they asked us to work on 6% of CTC and payment will be on 90th day . By taking them as our first and valuable client we managed to work on their T&C. We sent them agreement with revised T&C to sign...meanwhile they sent us their requirement, and we started working instantly after receiving the requirement. Within 1 and half day we sent 6 relevent CVs and scheduled for interview, 3 candidates are very much fit for that position. Now after getting contact details for all the 6 candidates, they told as that they will pay only 5k for the candidate, wherein according to 6% it worth 25-30K. The agreement still to signed, as they told us it will take week to sign.

So now my questions are :-

How to handle this ?

We have a go ahead for this on mail only.

We worked honestly, dedicatedly and gave high priority to their requirements and managed to close the urgent position in 2 days, infact we are new to this process.

So i am really confused how to handle this. Neither i want to loose my client nor to loose my payment.

Please suggest on this. Hope i conveyed my situation enough to get an idea !

Awaiting your response.

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So many views but no response. Strange. Dear experts expecting your guidance and suggestion. Kindly help me with this. Regards Sidhaarth
Dear Sidhaarth B,
You are vendor to your client. No vendor should start providing material or services unless you receive PO from them. You have rendered your services without PO.
Above all the agreement is also not signed. Now you have two options. One is to forego the amount and second is to send the lawyer's notice. However, check with lawyer whether this case fits within the purview of Indian Contracts Act, 1872.
Secondly, how they have communicated their stand to change the remuneration from 6% to Rs 5,000/- per candidate? Is it verbal or is it through mail? That also matters.
Dinesh Divekar
1) if you have a go ahead on email from your Client after you sent the revised terms you are entitled to the charges accordingly.
2) What to do is entirely up to you. If you feel the Company is strong and ethical enough to give you good business in the years to come, accept their revised terms. If not, insist on payment for services already provided per terms initially agreed and move on.
I echo our experts. Please stand strong on the amount discussed initially . I had shared it with my mentor, Sudipto Mukherjee and he suggests you play the hard ball.
You are new to the business. Hence its all the more sensitive duration for you. Trying to get clients , even after being under paid will burn your resources.
Cut the losses and stand firm.
Here's his words, if you may want to read it .
Sudipto Mukherjee , Business Coach to CEO suggests
Hi Dinesh / (Cite Contribution) / Hardeep

First of all, thanx for your valuable suggestions.

@ Dinesh,

From Client,

Thanks for your response. As per our company’s policy we pay all our vendor’s 6% of the annual CTC and the payout period is after 90 days. Also the replacement period is 90 days.

I hope you agree on these conditions.

Our Resonponse

As discussed, we agree on the below mentioned conditions. Request you to let me know the process for signing the contract.

Also kindly send the requirements for your company so that we can start working on the same.

And then we started on their requirements, which we achieved in a one n half day.

We get to know 5k amount through telephonic conversation.

We go ahead on trust factor, honesty and clean business.

@ Hardeep

As i have mentioned the decisive statements above. We agreed on their T&C, wherein ( our standard is 8.33%).

Now there is no way to accept their revised terms because i am very confident on my services and responsiveness. Even HR appreciated our services. So i think i deserve my pay. Even if they provide good business in terms of requirement on 1% than no firm / organization will continue on their revised term. Right ?

@(Cite Contribution)

Appreciate your response, similar to our strategy, was seeking a support on this strategy.

We already expected loss initially, but not like this. So there is no effect on our firmness.

We believe and confident in providing excellent service upto client's satisfaction and ready to walk extra miles with them.We value relationship. Except the finance which we deserve in exchange of our efforts.

Queries :

Can I meet their VP / GM or head to sort out this?

Is it right to go legally if nothing conclusive comes up ? Request you to suggest in YES / NO.

Its ok we didn't get much clients. Lesser client and excellent service. I firmly believe in this. What are your opinions ?

Thanks again to give your valuable time to put your suggestions.

Thanks and Regards

Suggestion -
Cann't we organize a union for all recruiters and recruitment agencies, where we point out such kind of issues because this happens very frequently in our industry, atleast once or twice with almost every person linked to this industry.
Your opinion matters.
Thanks and Regards
Dear Sidhaarth,
I share you anguish. But at this very early stage of your business such hiccups surely discouraging factor. However, it's your choice whether to go ahead legally or otherwise. You have not answered why you have not opened the dialogue or some sort of negotiation with this client so far ? Legal course for sure will take many years and costs money which is going to be much more than what you have to get from them, leave alone in which way the suit will result in. If I were to be in your place, my first choice would be to build up goodwill amongst the clients and earn a standing in the market as a start up firm and few losses here and there is going to be part of the game.Think it over on what you want to achieve as a first choice.
Hi Kumar.s.
Good to hear a straight response.
My first priority is build a healthy relationship and make my base strong.
This situation is happening now, expecting a positive response from client on monday.
Will share the update for sure.
Hope all of you had a great weekend !
Thanks and Regards.
I believe the legal option is costly to pursue especially because you do not have a strong case in terms of a document where the client has agreed to certain terms. What you need to do in such circumstances is to first let them pay Rs. 5 K which you should then accept under protest with a nicely drafted email followed by sending it by Registered A.D..
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