RSSM Digital NPAworldwide Edition March 2020 | Page 34

FINANCE
HOW TO KNOW IF YOU HAVE A GOOD CASE TO
COLLECT YOUR PAST-DUE PLACEMENT FEE
By Staff Writers
S taffing and Recruiting companies play an
important role in the business world. They
alleviate the stress that comes with finding
and hiring top candidates to fill positions
at a company. Instead of spending the time
and resources necessary to hire an employ-
ee, companies will contract with recruiting
firms to do the job for them. After the firm
has successfully fulfilled the terms out-
lined in their contract, the company pays
them for their work. This should be an easy
transaction between the two companies,
but, as everyone knows, there are always
exceptions. Sometimes, clients will refuse
to pay placement fees or try to negotiate
their way out of them. So, what do you do
when a client missed paying placement
fees? And how do you know if you have
a good case to collect past-due recruiting
placement fees?
For those of you who are familiar with our com-
pany, you know that we are huge proponents of
having legal counsel on any contract that you
draw up or sign. You can save thousands of dol-
lars in litigation fees if you spend the money up
front to have a lawyer work with you when you
enter into a contract with a client. Warning aside,
our clients come to us to help them collect on
past-due placement fees. We take all kinds of cas-
es, but there are a few ways to know if you have a
good case to collect on missed recruiting fees.
1.
The first and easiest way to know you have a
good case is if you have a signed contract with your
client stating the exact time and amount they owe
you. In these cases, the client clearly owes you and
there is a record of the agreement.
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2.
Another way to know you have a good case is if
there is some acknowledgment, either past or pres-
ent, by your client that they knew and agreed to pay
for your services. Any record of them saying they
know that you were owed ___ amount will go a long
way in the collection process. Even if they give an
excuse as to why they are not paying, your case is
strengthened by any admission that they understand
you were owed the agreed amount.
3.
The last way, that we will discuss here, to know
you have a good case to collect on missed recruiting
fees is if your client tries to file a lawsuit to avoid
paying your fees. This is a bit of a tricky situation,
but some people will use the threat of a lawsuit as
a means to scare their way out of a contract. These
cases are often baseless and more of a tactical move
to avoid paying the owed fees. A lawsuit can work to
your advantage because it once again acknowledges
that they are trying to avoid acting on a previous
agreement.
There are other ways to tell if you have a good case
to collect on past-due placement fees, but the three
above are some of the best. A signed contract will
always be your best tool if you have any issues with
one of your clients.
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