Facing Legal Trouble with HR Consultancy Over Unpaid Fees: What Should I Do?

Recently, I was sent to a company for an interview through an HR consultancy. According to the agreement, I will have to pay the consultancy in two installments against my job. I have issued two cheques in favor of the consultancy. However, later on, I realized that it's not possible for me to make the payment. Although I have already given the interview and been selected by the company, I have not accepted the appointment letter provided by the company.

The consultancy is now claiming compensation from me. Do I have to face any legal issues with that HR consultancy?

Warm Regards,
Vikysales

Consultant and Candidate Payment Practices

Taking money from the candidate is not justifiable. However, if the consultant and candidate mutually agree, then the candidate should be paid after receiving the salary from the new company. It appears that accepting the offer by the candidate and not joining immediately is a common practice found in the IT sector. Negotiating the offer received can sometimes result in a higher cost to company (CTC) compared to the previous offer.

I am against taking money from the candidate. The consultant should only accept payment as agreed upon from the employer. If the employer is unwilling to pay the service charge, it is better for our consultancy community not to support such employers. This way, the practice of not paying the consultant will diminish. Be professional and serve the candidates to help them secure the right job.

This is my viewpoint on taking money from the candidate.

Regards,
Nimesh Paul

Dear Vicky Sales,

Since you have already given two cheques to the consultant, it would be advisable to accept the appointment letter and then pay the agreed amount. The HR consultant could present the cheques, and if they are dishonored, they may take legal action against you for cheque bouncing. It is also important to note that reneging on agreements is not a favorable practice. Upholding commitments, even if they are challenging, is a positive behavioral trait.

Regarding consultants, as an employee, I would steer clear of consultants who demand money from candidates.

All the best,

Regards,
Robin Varghese
HR Consultant, New Delhi
[Email Removed For Privacy Reasons]

I have initiated a stop payment, so there is no chance of the cheque bouncing.

Warm Regards,
Vikysales