Employment agency contract question
Discussion
One of my managers is looking for a new IT person. He put stuff in the newspapers and wrote to a few employment agencies. The long and short of it is that he's found a decent person as a result of one of the agencies. This agency is now saying they want 30% of his annual salary, which equates to over £10k. My manager is kicking up at this saying that we've never pay 30% in the past to any agency (and we haven't). However, I'm being more pragmatic. If those are the terms of the agency and he now objects it's a bit too late because the terms should have been negotiated prior to agreeing the interview. I've said there's a lesson to be learned - negotiate terms before you're a client not after the product been delivered!! As such, I'm inclined to pay the full amount.
However, my manager is saying "but I didn't sign a contract, therefore there's no agreement".
My question: does anyone have a handle on employment agency legislation? If nothing was signed prior to the search/interview I presume there is still an obligation on the part of the client (us) to pay the agency. However, if no figure was discussed/agreed what is the legal position of this?
However, my manager is saying "but I didn't sign a contract, therefore there's no agreement".
My question: does anyone have a handle on employment agency legislation? If nothing was signed prior to the search/interview I presume there is still an obligation on the part of the client (us) to pay the agency. However, if no figure was discussed/agreed what is the legal position of this?
You should have been given Terms of Business prior to receiving any CV etc from the agency.
You do not need to sign for these as going ahead and employing the person is accepted as adhering to the Terms.
Most agencies will negotiate - even after terms have been passed.
This website might help:
www.rec.uk.com
Most reputable agencies are members.
You do not need to sign for these as going ahead and employing the person is accepted as adhering to the Terms.
Most agencies will negotiate - even after terms have been passed.
This website might help:
www.rec.uk.com
Most reputable agencies are members.
HI Steve
I run an agency and insist that all agreements are signed in advance. However, in this case if no terms of business were presented at any time, then the agency could be in breach of the employment regulations, a copy of which I can email you if you PM me. You can also google for these.
www.dti.gov.uk/files/file24248.pdf
A lot of agencies try and charge 30% for certain salaries although the reality is that the market cannot really sustain these sorts of rates anymore. It would really be down to the agency to prve that rates had been agreed, otherwise you should be able to negotiate.
Bottom line, is that both parties are at fault, the agency more so than you guys, I think a bit of negotiation needs to take place.
If all else fails then drop em aline and we can get you another person at half what they are charging!
Best of luck.
I run an agency and insist that all agreements are signed in advance. However, in this case if no terms of business were presented at any time, then the agency could be in breach of the employment regulations, a copy of which I can email you if you PM me. You can also google for these.
www.dti.gov.uk/files/file24248.pdf
A lot of agencies try and charge 30% for certain salaries although the reality is that the market cannot really sustain these sorts of rates anymore. It would really be down to the agency to prve that rates had been agreed, otherwise you should be able to negotiate.
Bottom line, is that both parties are at fault, the agency more so than you guys, I think a bit of negotiation needs to take place.
If all else fails then drop em aline and we can get you another person at half what they are charging!
Best of luck.
I would say that no fee is due payable - they did not tell you that you had to pay for the service - nor did they at anytime outline their fees - so b*ll*x to them - take the guy on and then see what happens.
They will send you a bill - followed by court proceedings.
OR say to them that you will NOT take the guy on unless they negotiate - 15% is the norm for a CV service (contingency recruitment) - bearing in mind his salary is only £30k - 30% is well OTT.
No T&C's - no fee - simple!
Khushy
They will send you a bill - followed by court proceedings.
OR say to them that you will NOT take the guy on unless they negotiate - 15% is the norm for a CV service (contingency recruitment) - bearing in mind his salary is only £30k - 30% is well OTT.
No T&C's - no fee - simple!
Khushy
Hmm, this is interesting.
Is it 'the norm' for such agencies to carry out underhand tactics to increase what they're paid?
The reason I ask is that a girl I know recently signed up to one looking for work (she's an accountant). They got her an interview at some place, the pay being about £35k a year. She went to the interview and was told she had the job. Two days later she gets a phone call saying they're going to pay her £40k a year. This seemed a little odd to me, if they'd already agreed a wage and told her she had the job I couldn't understand why they'd increase the wage out of the blue just like that. Is it possible the agency influenced this without her knowledge? Perhaps pretending she'd had a better offer, etc?
Is it 'the norm' for such agencies to carry out underhand tactics to increase what they're paid?
The reason I ask is that a girl I know recently signed up to one looking for work (she's an accountant). They got her an interview at some place, the pay being about £35k a year. She went to the interview and was told she had the job. Two days later she gets a phone call saying they're going to pay her £40k a year. This seemed a little odd to me, if they'd already agreed a wage and told her she had the job I couldn't understand why they'd increase the wage out of the blue just like that. Is it possible the agency influenced this without her knowledge? Perhaps pretending she'd had a better offer, etc?
2 sMoKiN bArReLs said:
I'd still brave it out. 30% is extortion, and they'll know it.
Sorry mate, that's rubbish!
I used to charge 30% of annual salary, and clients are happy to pay it if they know what it is upfront and are happy that the recruitment agent adds enough value to the recruitment process to justify it.
I never had a problem getting paid.
Strictly speaking, even a telephone conversation could be regarded as a verbal contract... however most rec consultants will send T&C's with the fee explained. Sometimes these are worded in such a way that you agree to the terms when you employ a candidate introduced by the agent, your deemed to have accepted the terms.
Which is a bit of a shit if you haven't read it!
Gassing Station | Business | Top of Page | What's New | My Stuff