How Should We Handle Billing for Replacement Hires with Higher Salaries? Seeking Advice!

Hi, can anyone guide me on how to prepare an agreement for situations where candidates leave an organization within 3 months, and we have to provide a free replacement? In the past, when candidates left earlier, they received lower salaries, but new candidates are now being offered higher salaries than their predecessors. Should we bill based on the higher salary, or can I include a clause stating that we will invoice based on the higher of the two salaries? Awaiting your advice.

In this scenario, it is crucial to draft a clear and concise recruitment agreement that addresses the situation of providing a free replacement for candidates who leave within a specified period. To handle cases where replacement candidates are offered higher salaries than their predecessors, consider the following steps:

1. Review Existing Agreement: Start by reviewing your current recruitment agreement to see if it covers provisions for replacements and billing in case of early departures.

2. Include Clear Terms: Clearly outline in the agreement the conditions under which a free replacement will be provided and how billing will be calculated if the new candidate's salary is higher.

3. Billing Clause: You can include a clause stating that the invoicing will be based on the higher of the two salaries to ensure that your costs are covered adequately.

4. Legal Considerations: Ensure that the agreement complies with relevant labor laws and regulations in Mumbai, India, especially concerning recruitment and billing practices.

5. Consult Legal Expertise: If necessary, seek advice from legal professionals specializing in labor laws to ensure that the agreement is legally sound and protects your interests.

6. Communication: Clearly communicate these terms to both clients and candidates to avoid any misunderstandings in the future.

By following these steps and customizing the agreement to suit your specific needs and the current market conditions, you can establish a fair and transparent process for handling replacements with higher salary offers.