I am running a recruitment firm. I have a query: if a client withdraws the offer just before the joining of the candidates, due to their own reasons - nothing related to candidate verification or so - in this case, should we get paid as we have offered our services to them.
From India, Pune
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Dear Rachna,

You have provided your client with recruitment services. As a part of that, the selection process was completed, and the client had issued the offer letter. However, later it was withdrawn. Notwithstanding the withdrawal of the offer letter, I recommend that you raise the invoice for the services. If the client raises an objection, then tell them that the time and energy you have spent in searching for the candidates deserve payment. The withdrawal of the offer was because of their internal reasons, and as a service provider, you have nothing to do with it.

While you have raised a query about payment for your services, what about the candidate? The sudden withdrawal of the offer letter must have left him high and dry. Where will he go? Now, he will be jobless until he gets a new job. Moreover, the status of being jobless weakens his candidature. He has lost his bargaining power. His worries are far more severe than yours!

Thanks,
Dinesh Divekar

From India, Bangalore
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nathrao
3251

What are the terms and conditions of your agreement with the client? From what has been stated by you, the company should pay your fees as stipulated in the agreement.
From India, Pune
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Dear Rachna,

This opinion is based upon the information provided by you. You are providing the services for recruitment of candidates required by your client as per predetermined terms and conditions.

The last assignment done by you was in no way affected by the termination of the agreement. The actions of the client would affect the future/new assignment but not the selection process done as per the direction of the client.

Your client is bound to pay for the last assignment done by you prior to the termination of the contract. The client is legally bound to pay because your actions are as per their direction.

You should raise the invoice quoting their reference of conducting the selection. If your client does not pay, then take the legal course for the same.

From India, Mumbai
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