Client Refusing to Pay Recruitment Fee: How Should I Handle This Situation?

Dear Seniors, please advise me. One of my clients is not paying the recruitment fee as per the agreement. He was supposed to pay it within one month, but it has been 5 months now. They are now saying that they intend to remove the candidate and will not pay.

Seeking Advice on Lodging a Complaint

Please suggest where we need to lodge a complaint to ensure this does not happen to other consultants as well.

Thanks in advance.

It is such an absurd scene from the client. The client had utilized the resource for 5 months. What steps have you taken upon not receiving the payment in the second month?

- How many times have you contacted the client, and have you or any of your executives approached personally?
- Were there any email conversations providing testimony?
- When was the contract signed, and what is the time period it serves?
- Is there any clause embedded by you on non-payment of fees that would make the client liable? If so, what is that clause?
- Does the candidate deployed to the client have any proof of documentation (an Appointment letter, LOI, Salary slip, etc.)?

Please respond with answers to these questions, and I am confident there is a solution to all issues in this endeavor.

Regards

We have contacted them many times, and one of our executives visited their office twice. We have had a few email conversations regarding this. The agreement was signed in August 2012, and it is valid for one year.

Jurisdiction:

In case of disputes arising out of disagreements in the terms stated in this agreement, the courts of Hyderabad will have complete jurisdiction.

We have received email confirmation from the client regarding the amount they offered to the candidate. Please suggest.

Regards,

Dear Mr. Sarath Raja,

All the details are on your flank. Please send out a notice (by registered post) written on your letterhead that the client has failed to remit the fees, and this shall serve as the last correspondence. The amount of Rs. ___ shall be paid within 5 days after the receipt of this notice. If they fail to do so, the agreed contract shall be liable for an indictment to the client. In case you do not receive an acknowledgment, you would have evidence and can hire an advocate for an appeal. They will send out a notice from the advocate's office to pay the structured amount within a stipulated time, failing which they would be filing a petition against them.

Initiate the first step, and I'm certain by all means they would recompense the same. This procedure has worked out for us; try and work from your end.

First, see whether your records are adequate and check whether your agreement has an arbitration clause. If yes, you should exhaust this option first and check the time period stipulated for the payment of your fees. After providing proper notice in writing through your advocate, you can file a civil suit in an appropriate court depending on the amount you have to receive.

Regards,
Kumar S.

The law only requires issuing a formal intimation to the other party to provide the dues. This responsibility lies with your company. In addition to sending this notice, please review your agreement to ascertain provisions regarding the replacement of the candidate or the protocol in case the client terminates the candidate. Thoroughly examine the agreement, ensure everything aligns, and then proceed with issuing the letter. In the event that the other party disregards your notice, you have the option to seek legal advice, engage an advocate, and file a recovery suit with litigation costs in court.

Furthermore, as mentioned by Mr. Loginmiracle, verify if there is an arbitration clause in the agreement and take appropriate action.

Please do not hesitate to reach out if you have any uncertainties.

Regards

Very useful attachment. There are a large number of cheats who will take services and not pay for them nowadays. Unfortunately, the cumbersome legal process and infinite delay of such litigations for recovery have become a heyday for such defaulters!

Regards,
UG