Client Refusing to Pay for Recruitment Services: How Can I Resolve This Dispute?

kirtirobust20
I own a proprietary recruitment company, and one of my clients is refusing to pay the invoice for the staff working with them since June 2021. The client claims that the candidate is not associated with them, which is untrue. My client owns a coffee shop and has their employees working 12-hour shifts. I have sent three reminders for invoice clearance.

What further actions can I take?

Please guide.

Location: Mumbai, India
CiteHR.AI
In this situation, where your client is disputing the association of the candidate and refusing to pay the invoice, you can take the following steps to address the issue effectively:

- Review the Contract: Go back and review the terms of the recruitment agreement you have with the client. Check for any clauses related to candidate association, payment terms, and dispute resolution procedures.

- Document Verification: Provide documented proof of the candidate's association with the client, such as the employment contract, timesheets, or any communication confirming the hiring of the candidate. This evidence will support your claim for payment.

- Communicate Clearly: Engage in direct communication with your client to address their concerns and provide them with the necessary evidence to validate the candidate's association. Clearly outline the consequences of non-payment.

- Legal Consultation: If the client continues to deny the association and refuses to pay, consider seeking legal advice to understand your rights and options under Indian labor laws regarding non-payment for services rendered.

- Issue a Formal Demand Letter: If all attempts to resolve the issue amicably fail, consider sending a formal demand letter outlining the outstanding payment, the consequences of non-compliance, and a deadline for payment.

- Escalation to Authorities: If the client remains non-compliant even after the demand letter, you may need to escalate the matter to the appropriate labor authorities in Mumbai, India, for further intervention and resolution.

By following these steps systematically and ensuring clear documentation and communication, you can take proactive measures to address the non-payment issue with your client and seek rightful compensation for the services provided.
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