Understanding Candidate Replacement and Billing Procedures in Recruitment Consulting

Hi Team,

Please let me know in which case the vendor is responsible:

i) If the candidate is being terminated by the client after one month, is it the vendor's responsibility to replace the candidate?

ii) If the candidate resigns from the organization voluntarily within the guarantee period of 3 months.

iii) How do we need to bill the client if the candidate is replaced? Should we bill according to the 1st Candidate's CTC or the replaced Candidate's CTC?

Kindly guide me in this regard.

Thanks & Regards,
S. Srikanth
09848230995

Dear Shrikanth,

First of all, it is not vendor; it is consultant. All the above queries are as per the terms and conditions that both agreed and signed off. If the customer mentions that if the candidate resigns or is not found suitable, then he has to be replaced by the consultant without any additional fee; this may be a clause. In that case, the consultant needs to replace the candidate. If the candidate resigns, then it needs to be replaced within one, two, or three months as per the terms and conditions.

I am unable to understand why you are raising the billing aspect. Normally, all consultants will raise the bill, and the companies will clear the bill within 15 days of the candidate joining. The responsibility for replacement lies solely with the consultant. In this case, why is the billing aspect arising? The consultant has already received the payment as the organization has paid. No consultant will wait until three months or until the replacement issue arises.

If you are in the manpower consultancy business, please send me your company profile. We can also consider paying the bill after three or six months.

Regards,
Kameswarao

Hi Srikanth,

It is the vendor's responsibility to place the candidate in case he is terminated by the client. As far as the payment of the vendor's bill is concerned, it depends. If the replacement is paid a higher salary, then you need to raise the bill for the replacement. If the replacement is paid a lower salary than the first one, you should raise the bill for the first candidate's CTFC, whichever is higher. I hope your point is clear.