Can a Recruitment Agency Claim Fees if a Candidate Directly Applies for a Job?

Dear Experts,

I request your views on the following:

Recruitment Practices in Corporate Companies

It is the practice of recruiting officials at higher levels through recruitment agencies in corporate companies. As such, the agency has referred persons X, Y, Z, and so on. Mr. X was recruited after the interview, and the agency was paid a fee for such recruitment. However, after two years, Mr. X left the employment. Knowing that the vacancy was caused by Mr. X's resignation, Mr. Y directly approached the firm for the vacant position. After the interview, Y was selected and appointed in the firm, where he has been working for the past 1.5 years.

Agency Fee Claim for Direct Recruitment

Now, the recruitment agency claims that since candidate "Y" was also referred by the agency, the firm is liable to pay the recruitment process fee to the agency. My query is whether the recruitment agency has the right to make such a claim against the firm for the recruitment of "Y," even though the recruitment was made directly now.

Thank you.

Dear Sridharan,

This is a matter between a purchaser and a service provider. Before providing the services, has the recruitment company (service provider) signed any contract with the company (purchaser)? If yes, please provide the terms and conditions of the contract.

Lock-in of the candidates and validity period

Especially, check the clause on the "lock-in of the candidates" as well as the "validity period" of the contract. "Lock-in of the candidates" means a recruitment company will recommend a certain number of candidates to the company. From the date of recommendation, the candidature of the candidates gets locked, and for each recruitment among the recommended lot, the company (purchaser) is required to pay a certain fee to the recruitment company. This lock-in period will remain valid for the _____ years from the date of recommendation.

If the contract is not clearly worded, it can lead to confusion, and both sides may interpret the terms of the contract to their advantage.

Thanks,
Dinesh Divekar