Debt Collection for Employment Agencies

Because of the type of work that employment agencies perform, sometimes people will refuse to pay for their services. It is essentially a service based industry where the recruiter cannot take money up front for the service that they provide and this can often present problems with payment later down the track when the client refuses to pay. Although there are many standard legal agreements which employment agencies use with their clients to try to prevent loss being incurred of comission of a job placement, it does unfortunately happen quite often.

What can you do if you have a client that won’t pay?

If you have gone through all of the work of screening applicants, selecting appropriate candidates, sifting to find the correct one that matches the exact situation and the job description, the location and the organisation, getting the timing right with the job seeker and making sure that they are not going overseas or have found another job and then finally getting them to interview and the employer being satisfied that they can do the job and they have the skills, background and experience that they are looking for and the employer gives them the job you will naturally be very disappointed when you find out that the client has simply ignored all of your work and now refuses to pay the commission that you have earned.

You can go through the normal debt collection process of making debt collection calls, sending payment reminders and even a letter of demand eventually if the matter gets serious enough. If you exhaust all of these options you may eventually need to sue the person in relation to a matter like this. We have debt collection letter templates available here and if you would like to look into how to recover a debt, just post your enquiry in the box to the right. We are more than happy to help. If you have reached the stage of needing a lawyer to recover the debt, we can also assit you with finding an appropriate one.

Debt Collection Letter Resources