Recruitment agency with Employer - how the payment structure should be if no candidate is selected?

Want to make a contract between Recruitment Agency and employer. Please confirm what if we don't like any candidate hence no candidate gets selected provided by them then it's ok if we don't pay agency or how the payment structure should be as the agency said that only after joining of the candidate we have to pay full 1m salary we ar providing to employee within 45 days of the candidate joining what if we don't like anyone then should we pay or not.

Dear Sayali,

The recruitment agency is a contractor in this case. The contractor is eligible to raise the invoice provided the candidates are selected. If he provides the candidates but none of them is selected, then the contract services are incomplete. For the incomplete service, how the contractor will be eligible to raise his invoice?

Anyway, in your contract, you may write clearly that:

"Selection of the candidates is subject to the fulfilment of the recruitment standards of _______ (name of your company). There is a possibility that none of the candidates recommended by the contractor could get selected. Under such circumstances, the contract services will be deemed incomplete and the contractor will not be eligible to raise their invoice."

Before you avail of the services, you may issue a proper Purchase Order (PO) or the Work Order (WO) to the recruitment service provider. Mention clearly the terms and conditions of the services, the general process of selection, terms of payment etc. At the same time, give a commitment to the recruitment service provider that the candidature whose candidature is turned down will not be selected in the same position or any other position for the next five years.

Thanks,

Dinesh Divekar