Candidate Joined Another Firm Despite Agreement – What Legal Actions Can We Take?

I work for an IT staffing and consulting firm. We place applicants in top firms, but one individual was diverted by another consultant. Despite our orders not to proceed, the candidate joined the company through the other consulting firm. What legal steps can we take against the candidate?

Dear Jayasree,

To determine whether the candidate has breached the contract, we need to know the terms and conditions of the contract. Specifically, we need to ascertain if the contract was executed on stamp paper. If so, we require details on the value of the stamp paper. Additionally, we need to establish if any third party is involved in the contract and, if so, whether the third party was a signatory to the contract. Without the complete facts of the case, it is not feasible to provide any comments on the matter.

Thanks,

Dinesh Divekar

Understanding Staffing Firms

Can I understand that staffing means a firm provides candidates to companies in return for a service charge? I believe that in such a scenario, the staffing firm only performs a marketing job by showcasing the candidates, and the decision to hire the candidate lies with the company offering employment. It is also important to understand that the candidate has a choice whether to join the company or not. There is no contract between the candidate and the staffing firm requiring the candidate to accept the offer given by the company. Then how can a staffing company take action against a candidate who chooses to join another company?

Multiple Staffing Companies

There are many staffing companies available in the market, and a candidate is free to use the services of any firm. There will be instances where the same candidate may be sourced by different firms, and you cannot take action against the candidate.

Hi Jayashree,

We take an undertaking from the candidate called "Right to Represent" (RTR), a form which is DocuSigned by the candidate. This form states that the candidate agrees to be exclusively represented only by our company for a specific client.

Additionally, we also take an undertaking regarding the candidate's Total Compensation (CTC) that has been negotiated with them. The candidate agrees not to share their salary details with the client or any other party.

Thank you.

So, from what I understand, you placed a candidate in a company. Then another recruiting firm offered him a job in the same company, and he took the job. You tried to stop him from taking the job, but he basically told you to take a hike.

Why do you think you have a case?

Please tell me why you think you have a case against him or the agency. Is he your bonded slave that he has to continue to work with you for the rest of his life? If he got a job opportunity, why do you think he will give up a direct job to continue to be an outsourced resource through you?

Legal considerations

And in case you are thinking you have a clause in your contract that he cannot take up the job, please read Section 27 of the Indian Contract Act, which makes such a clause in any contract invalid and unenforceable.

You can lodge a court case for a breach of the signed RTR. Further, I would like to inform you that your RTR would come under scrutiny because it is not a valid agreement.