It’s a growing issue in the recruitment sector, and something we’re seeing a lot more claims for. But why is that, and how can recruiters ensure their invoices are actually paid?
If a recruitment agency assigns temporary or contract workers to clients, they will be required to submit timesheets. This is so that the agency can calculate the number of hours worked by each worker, and how much they need to be paid. But problems can happen when:
- The employer doesn’t sign off the timesheet
- The number of hours claimed is incorrect
- The performance of the workers may be deemed unacceptable
In all 3 situations the employer may try to get out of paying the recruiters invoice. Some of these reasons can be prevented, like ensuring your terms and conditions state that the hours submitted on a timesheet will be deemed correct by default for the purpose of invoicing. In others, you may need to hire a professional debt collector to help you enforce payment through dispute.
Dispute Over Job Roles
In some cases, the employer might take on a candidate from a recruiter for a permanent role that is different from the one they were originally put forward for. This can mean that the hourly rate for that employee is higher than the original role, since the employer is getting a more expensive contractor than they paid for. When the recruiter then invoices for the new rate, the employer may dispute it and refuse to pay. Setting out clear remuneration terms and fee structures in advance may help combat this, but at other times recruiters may need a third party to mediate and resolve the dispute.
Disputes Over Temporary-To-Permanent Employees
If a recruiter places a worker in a temporary role, the placement will have an expiration date. On that date, the employer may decide to take on the temporary worker as a permanent employee. Usually in this case the employer would pay the agency a finder’s fee, as set out in the recruiter’s standard terms and conditions. But employers will sometimes attempt to avoid these fees, either by not telling the agency they are taking on the employee permanently, or simply by not paying the invoice.
Disputes Around The Finding Of Employees
Sometimes an employer might find the successful candidate through more than one channel – including the recruiter. If this happens, the employee may refuse to pay the recruiter, insisting they found the employee through an alternative source. Recruiters should ensure that the date candidates are first introduced to clients should be clearly documented and evidence is kept about their involvement with the employee to show that they were the effective cause of the candidate`s engagement, in case of dispute.
How Can A Debt Collector Help?
If your recruitment agency has experienced any of these problems, it may seem hopeless. You might have exhausted all the avenues you can think of to enforce payment, and still be waiting for the funds you’re owed to hit your bank account. But there are other ways to pursue it and ensure your invoices get paid on time, every time. A professional debt collection agency (like us) will help you recover all money owed to you through a variety of channels, from simply sending letters all the way through to court proceedings.
To find out more about how a debt collector could be a valuable partner for your recruitment business, just get in touch with us today and book your free consultation.