The candidate has started. The invoice has gone out. Then the client stops replying.
In our latest Recruitment Smarts Live conversation, Barry Cullen of recLAW explained why unpaid recruitment fees are often harder to resolve than they first appear, and what agencies can do to protect their position before a dispute begins.
Sometimes a client challenges whether the agency made the introduction or whether a fee was agreed. In other cases, they work happily with the recruiter throughout the hiring process, then become difficult to reach when it is time to pay. A change in how quickly someone replies can be the first sign that something is wrong.
Barry’s first priority is evidence. Recruiters may have discussed a role by phone, sent a CV by email and agreed details over WhatsApp or LinkedIn. Months later, those conversations can be difficult to piece together.
“In recruitment terms, if it is not on your CRM, it didn’t happen.”
He recommends recording introductions and client conversations as they happen. A short follow-up email after a call can confirm the role, interview arrangements or terms discussed, giving the agency a record it can refer to later.
The terms of business matter too. Barry said agencies should be able to show that the client knew about them, and understand exactly what their terms say about introductions, who counts as the client and when a fee becomes due. Good records cannot fix a clause that does not cover the situation.
If you discover that a client has hired someone you introduced, Barry’s advice is to find out what happened before accusing anyone of avoiding the fee. The hiring manager may not remember how the candidate first came into the process. Sending an angry email or an inaccurate invoice immediately can make a resolution harder.
“You don’t have to be right. You have to get the outcome that you want.”
Contract recruitment brings a different risk. An agency may continue paying workers while the client’s invoices remain outstanding. Barry suggested watching for slower timesheet approvals and payments, and checking a client’s creditworthiness as the number of contractors grows, rather than only at the start of the relationship.
The practical message for agencies is to keep the records, know what their terms actually cover, and pay attention when a client’s behaviour changes. If a payment problem does arise, start by establishing the facts.
Watch the full Recruitment Smarts Live conversation with Barry Cullen.
