Recruitment Dilemma: Should We Get Paid if a Client Cancels an Offer Last Minute?

I am running a recruitment firm. I have a query: if a client withdraws the offer just before the joining of the candidates, due to their own reasons - nothing related to candidate verification or so - in this case, should we get paid as we have offered our services to them.

Dear Rachna, you have provided your client with recruitment services. As a part of that, the selection process was completed, and the client had issued the offer letter. However, later it was withdrawn. Notwithstanding the withdrawal of the offer letter, I recommend that you raise the invoice for the services. If the client raises an objection, then tell them that the time and energy you have spent in searching for the candidates deserve payment. The withdrawal of the offer was because of their internal reasons, and as a service provider, you have nothing to do with it.

Consideration for the Candidate

While you have raised a query about payment for your services, what about the candidate? The sudden withdrawal of the offer letter must have left him high and dry. Where will he go? Now, he will be jobless until he gets a new job. Moreover, the status of being jobless weakens his candidature. He has lost his bargaining power. His worries are far more severe than yours!

Thanks,
Dinesh Divekar

What are the terms and conditions of your agreement with the client?

From what has been stated by you, the company should pay your fees as stipulated in the agreement.

Payment Obligation for Recruitment Services

This opinion is based on the information provided by you. You are offering recruitment services for candidates required by your client under predetermined terms and conditions.

The last assignment you completed was not affected by the termination of the agreement. The client's actions may impact future or new assignments but not the selection process conducted as per the client's direction.

Your client is obligated to pay for the last assignment completed before the termination of the contract. The client is legally bound to pay because your actions were in accordance with their directions.

You should raise the invoice, quoting their reference for conducting the selection. If your client does not pay, you should pursue legal action for the same.