velohead66

I need some advice on the following situation.


I used a recruitment agency to find a temp for me for an ongoing assignment.
This was only for approx 12 weeks, but open ended.

07/01/04 - Temp starts
08/01/04 - Me on holiday for 1 month
23/01/04 - Temp fired by my boss (me on hol)
- Temps works elsewhere (different agency)
09/02/04 - Me back from hols
24/02/04 – Temps sends cv to me at work (email)
03/03/04 – Me employ temp directly on hourly rate basis
28/07/04 – Agency finds out and now wants fees [[edited date!]]

The agency is a reputable one.
We spent $18,000 on rates with them.
We spent $9,500 on placement fees with them.

I may or may not have signed a contract with them, not sure.

What is the best way forward from here ??

Jerome

First of all, why was the temp fired? That would be my main concern to start with. Also, how come your boss fires this temp and you weren't informed?

I would think that the agency have a strong case. Imagine a scenario where company X employ a temp "Y". X and Y collude to save company X money and get Y a backhander. Company X pretends to fire Y and then quietly re-hires them directly - saving the large commission payment to the agency.

I imagine a contract was signed (especially if they are reputable), and that the agency have covered the above eventuality (and many others). It probably states something like re-hiring the temp within 6 months/1 year - even if fired - will get them their commission. The fact that the temp worked elsewhere in the meantime will probably be irrelevant. I very much suspect you'll have to pay the agency their fees.

Back to the pertinent point - why was the temp fired? Is the temp worth this aggravation?

velohead66

" Back to the pertinent point - why was the temp fired? "

I guess the temp was fired because my boss was trying to save money.
He is not known for his generosity.
He does not tell me everything, and I was out of the country getting married.

There was definately no collusion about saving fees, with a predetermined plan of action.

I felt my company had done the dirty on the temp by dumping her.

velohead66

Oooops. Please Note...

28/03/04 – Agency finds out and now wants fees
is wrong

should read
28/07/04 – Agency finds out and now wants fees

will edit post #1

Jerome

Fairy Snuff. Glad we got that sorted.

It certainly didn't sound like there was any collusion, I was just illustrating a scenario which the agency has to guard themselves against. Even though you have re-hired for noble reasons, you probably still owe the agency their fee - after all, you couldn't have re-hired her if they hadn't sourced her for you in the first place...

[shark mode on]
Now we know she's female, any pics?
[shark mode off]

Rachael

I work for a teaching agency...

Having read through the contracts, if a school decided to employ me, but NOT through the agency, they are still liable to be paid a one-off introduction fee.

It says;
Any temporary staff who has worked in a temporary capacity for a Client is deemed to have been introduced by us and therefore if any engagement of such staff on any basis is effected by the Client or by the introduction to a third party within 1 year of completion of the original assignment the Client will be liable for and agrees to pay us our current placement fee (and for the avoidance of doubt, regardless of whether the posistion to which the Temporary Worker has been engaged has been advertised in any way).

I'd have a check through the contract if I were you...

deanimus

I work for a recruitment agency, a very similar thing happened to us. To be honest the Agency is well within their rights to claim the fees.

ProperCharlie

the agency introduced the employee to you. what happened in between is largely irrelevant. you'll have to pay, imo.

velohead66

So, would they enforce their contractual right, at the expense of future business ??
Presumably, I may have some bargaining power.

Temp is still on an hourly rate. I do want her as an employee.
I could sack her and recruit through the small ads.
The job is not that high powered or specialised, basically a clerk.

Then again, I wouldn't like to do the dirty on the temp just to save my company some bucks.

Mmmm. Dilemas.

ProperCharlie

basically - yes. if you stole something from sainsbury's, would you expect them to let you off on the basis that if they didn't you wouldn't shop there anymore?

that would achieve nothing, as the agency would still expect to get their fees.

agencies make their money from introducing employees to employers. if every employer sacked the temp after a week, and then recruited them "independently" to avoid paying a placement fee, the agencies would be out of business pretty quick. hence they protect themselves from this eventuality in the t&cs.

i was p*ssed off when a similar thing happened to me, but i just had to accept that the agency were in the right, in the end.

OllyK

I can see some great scenarios coming up

Temp Employee is laid off as the position is to become permenant. Advert put in local press advertising, no agency involved with this. Former temp applies for the job off thier own back and gets rejected on the basis that they are the best person for the job, but they would have to pay an agency a fee for having done bugger within this recruitment cycle.

If the agency could show that open and fair recruitement was not performed, i.e. it was backhander stuff then fair enough, but otherwise I don't see that they have a claim (morally). The fact they may have stitched you up like a kipper is by the by. Personally I'd pay up and take my business elsewhere and make sure as many people as possible knew how inflexible the agency are towards compromise.