Fake Hires and Consultant Payment Disputes: How Should We Handle Legal Threats?

Handling Fake Hires and Consultant Payment Disputes

What should we do when our company hires two candidates who turn out to be fake, and we terminate them after three months? Now, consultants are asking for payment and threatening legal action if we don't pay them. My view is, why should I pay when we are terminating them? They did no work, and no billing was done for them as well.

Please help me with how I can handle this situation.

I assume you have a proper agreement with the vendor. If you do, there must be a clause for not paying if the candidate turns out to be fake or leaves within a certain time. Deny his payment on those grounds.

In fact, you may also issue a legal notice claiming compensation for providing a bad candidate (assuming there was a reasonable chance he knew they were fake).

Kindly review your agreement with the Vendor/Consultant. Normally, there will be a clause stating that the consultant must provide a replacement candidate if the talent is terminated or leaves the job within 6 months. In the present case, as rightly guided by our colleague, you can send a notice to the consultant for providing incorrect candidates to you, which has wasted your time and impacted your business. You may claim compensation for breach of the agreement, etc. Please make a decision after consulting with your top management.