Recruitment agencies play a vital role in the hiring process, connecting employers with job seekers and facilitating recruiting the right people for a business. However, disputes can arise when employers refuse to pay the fees owed to recruitment agencies for their services. If you’re a recruitment agency facing such an issue, here’s what you need to know.
There are several typical issues that recruitment agencies face when it comes to unpaid fees. These include:
It’s important to note that each case is unique, and the specific issues will depend on the facts and circumstances of each case.
If an employer has refused to pay the fees owed to your recruitment agency, you may be able to bring a claim against them. In order to do so, you will need to prove that:
A solicitor who has experience in recruitment agency fee disputes will be able to assist you in bringing a claim for unpaid fee and to advise you on the best course of action. Typical steps include:
As highlighted, one important principle in recruitment agency fee disputes is the principle of effective cause. This principle holds that the recruitment agency will only be entitled to fees if it was the effective cause of the introduction of the successful candidate to the employer. In other words, the agency must have played a significant role in the hiring process, and the candidate must have been hired as a result of the agency’s efforts.
This principle can be complex to apply, and it’s important to seek legal advice to ensure that you’re entitled to the fees you’re claiming.
If you’re a recruitment agency facing a dispute over unpaid fees, we can help. Our experienced team of solicitors has a wealth of experience in resolving recruitment agency fee disputes, and we can advise you on the best course of action in your particular case.
Contact us today to find out how we can help you resolve your dispute.