How Can I Ensure Payment from a Client Who's Delaying After 90 Days?

Dear all, please consider this: I am running a Manpower sourcing firm through which I have an agreement via an online email ID. This agreement confirms that a particular company has assigned us to fulfill their Manpower requirements at a rate of 8.33% of the total annual CTC, which they will pay upon completion of 90 days from the date of joining.

Currently, all the candidates we have placed have surpassed the 90-day mark, yet the company appears reluctant to pay our charges. We have already sent them an invoice.

Please advise on the procedure to secure our payments.

Thanks and Regards,
Tanmay Srivastava

Key Questions to Consider for Payment Issues

1. Is it a public limited, reputable company?
2. Are you prepared to let go of this client?
3. Have you sent them sufficient reminders, and have they responded to any? If so, what did they say?
4. Are the candidates placed happy in their job and performing, or are they already looking for greener pastures?

Answers to these questions will determine what you should be doing.

Steps to Secure Payments from Clients

1) Save and start documenting all correspondences that lead to the recruitments.

2) Start sending reminders via email. Escalate the issue to all the Directors, not only HR.

3) Hire a lawyer and proceed with a legal notice if your payments do not come through. It will cost, but if your case is valid and strong, you will win along with costs and damages. You could also try speaking to other friendly TPRs who are also dealing with the company; sometimes it works.

No one wants to leave a good client. A good client is one who appreciates your efforts and pays up, if not on time, at least within a reasonable extension. All others are just a drain on your resources and should be avoided.

Just my thoughts.