Legal advice ref. finders fees please!

Legal advice ref. finders fees please!

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oohsneaky

Original Poster:

20 posts

185 months

Monday 22nd August 2011
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Evening all - really hope someone might have some advice or information regarding any possible precedent here. A little background info:

A little over a month ago I was job hunting and had my CV registered with some agencies, up on jobsites, etc. Recieved a call from an agency regarding a possible position that sounded suitable so I asked them to put me forward for it. I then chased them about it for a week or so, but was told that I had been unsuccessful. Thought no more of it.

A couple of weeks later, I'm still doing the job hunting and see a job description of interest on a job site and open up the details - it's with the company that I had previously been turned down by. I email them my CV directly along with a covering email (didn't mention that I had previously applied as I believed it to be a similar but separate position), get asked in for an interview immediately, get offered the job almost there and then, and start three days later.

This was last week. Today my manager calls me into his office at the end of the day and say that the agency have found out that I've accepted a job (the same job as it happens) with this company and are therefore demanding their finders fee as per their terms and conditions. Company's position is that I wasn't hired through the agency's introduction so they can go whistle.

Turns out that my CV was only skim-read by the MD and Ops Director who managed to miss big chunks of it, but when I applied directly they were on holiday so it fell in the lap of the Quality Manager (my boss) and Production Manager who correctly recognised that I would be a perfect fit for the job and duly interviewed/hired me.

Problem is, the agency are saying that if they don't get their finders fee then they'll take the company to court for breach of contract as their logic is that had the company read my CV properly the first time it was submitted (by them), then I would have been hired as I was evidently right for the job, and thus the agency would have got their finders fee. The company have responded by saying that if the agency insist on this, then they will refuse to pay the finders fee on principle, but instead will terminate my employment instead. So I'm basically looking at losing my job through no fault of my own.

I've been at the company a week as of today, and have been told that I can't now go in until the situation is resolved. Because of the time of year it is (people on holiday) and the fact that I was hired at very short notice due to the urgency with which they wanted to get me started, I haven't yet signed an official contract (I know, I know), but have been promised that I will get paid for the work done so far.

My question is what, if anything, can I do or do I just have to leave it to them to sort out? The company have said that if the agency agrees to waive the finders fee and basically back down then I keep my job, but I've spoken to the agency and they're refusing to do this. DO I have any rights here or am I pretty much screwed?

Steffan

10,362 posts

229 months

Monday 22nd August 2011
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Recruitment Agencies are amongst the most aggressive money collectors I have encountered in business. I doubt that they will back down.

The fact that your employer has advised you to not return unless this is resolved suggests to me they realise that they are on a sticky wicket.

If the first awareness with your employer of you as a possible prospective employee was created by the Agency then prima facie they introduced you to the employer.

I cannot readily see any reason why they should not get a fee.

You might argue Quantum ie that the fee is reduced but I suspect they will come at the situation with all guns blazing.

With good reason, they introduced you. Unpalatable but very probable.

I think you have a problem.

slow_poke

1,855 posts

235 months

Monday 22nd August 2011
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Bummer. Best to get looking for another job - with a better Company.

TurricanII

1,516 posts

199 months

Tuesday 23rd August 2011
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It sound to me like they sent your CV in but did not follow it up. I would expect an agency to (1) recognise that your CV is perfect for the role and (2) follow up with a call to the employer when the perfect CV has been discarded.

I would be wary about the lack of backing that the employer has given you, but I would quickly write a letter to the recruitment agency asking for comments on the above points and suggesting that they have clearly been negligent in handling and promoting your CV, which potentially cost you the job in the first place.

Small claims allows you to sue a plumber who through malpractice costs you time and money. I would probably be angry enough to threaten and then follow through with a small claims action against the agency on the basis that their negligence has cost you the same job twice!

I am not a lawyer or recruitment pro.

There may be other wiggle room in the wording of the agreement that the agency has with your employer. I would just hope that your employer sees the value in you and has a pair of bks.

SteveS Cup

1,996 posts

161 months

Tuesday 23rd August 2011
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First and foremost, that is a st situation for you to be in. So I feel for you!

Here's my view's (I'm a Recruitment Consultant).

The Agency obviously has no relationship with their Client. I wonder what feedback they had on your CV? Without going in to an essay, it sounds like they're a bit shoddy.

However, they're well within their rights to insist on their fee and they will get it as long as they have signed / agreed T&C's.

By doing this, I take it there is hardly any volume of business to be had for them within your company nor do they value the relationship, as I'm sure your company will never use them again.

I'd also be concerned that your company have asked you not to come in until this is sorted and they'd rather let you go than pay the fee!!! I actually think this is terrible!!! I'd also question whether you want to work for a company that acts like this!?

I can't see a suitable solution if I'm honest.

If this happened to me and I valued the relationship and could see potential future business then I'd ask for a couple of roles on an exclusive basis maybe (including a retainer!).

I'm not sure where you'd stand though buddy... I mean, you've not been there a month yet; they could get rid of you because they don't like the smell of your farts!! So I'm not sure if you'd be entitled to a case of unfair dismissal or not however clear cut this seems!

If I were you, I'd be looking for another company to work for who values their employees.

The company may have to pay a fee whether they get rid of you or not. So the logical thing to do would be for them to pay the fee and then tell them that they are expanding the business and they are going to be recruiting heavily over the next few months but they won't be looking for their help with the roles! (Although it was your company's fault for not interviewing you via the agency in the first place).

I hope that all makes sense and it's not too contradictory... there's just an awful lot of ways of looking at this situation.

oohsneaky

Original Poster:

20 posts

185 months

Tuesday 30th August 2011
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Well, spoke to the company last Friday and I am officially unemployed. They're getting company solicitors involved and everything as they've been invoiced by the recruiters, but I can't be doing with all the macho posturing and inability to back down so have started the hunt for something else. Seems a shame that they were willing to lose an employee over a fee they were obviously happy to pay in the first instance, but if this is an indication of how they're willing to treat employees then I reckon I'm better off out of it.

Soovy

35,829 posts

272 months

Tuesday 30th August 2011
quotequote all
oohsneaky said:
Well, spoke to the company last Friday and I am officially unemployed. They're getting company solicitors involved and everything as they've been invoiced by the recruiters, but I can't be doing with all the macho posturing and inability to back down so have started the hunt for something else. Seems a shame that they were willing to lose an employee over a fee they were obviously happy to pay in the first instance, but if this is an indication of how they're willing to treat employees then I reckon I'm better off out of it.
This.


zaphod42

50,572 posts

156 months

Tuesday 30th August 2011
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^^^ As per our learned Soovy.