Is the Recruitment Company liable for lost earnings?
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Is the Recruitment Company liable for lost earnings?
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Long story short...2 months or so ago I was approached by a recruitment company who had come across my CV via one of the major UK job websites.
They called me up and asked if they could put me through for an interview with a Web Design company that was branching into Glasgow.
Anyway I got the interview & then the job. I worked my first month and when pay day came round I wasn't paid...along with the other 9 staff that were hired (all via the same recruitment company).
Eventually it became apparent that we were not going to be paid, and that the Managing Director of this company was a con man. He had made big claims about the size of his company (more so of the parent limitied company that he had).
He had claimed that the parent company had been trading for over 2 years, but once we weren't paid and suspicions were raised it was checked out and it transpired that his company had only been registered with Companies House for 1 year and were in fact overdue for their accounts.
Additional Details
Basically we it was discovered that the recruitment company admitted they didn't check out the client company or the Director. Now none of the staff that were hired through them have been paid, and neither have the recruitment company, as the MD of the client company has done a runner & is being investigated by the Police.
What I am wondering is whether the recruitment company are liable for at least the wages for the time I work, if not more. As I was approached by them, and they were acting as employment agents. Surely it is their responsibility to check out both candidate & the client business?
It was suggested I brass my case and just write to the recruiters and tell them I believe they are liable and request compensation.
Anyone have any advice?
I greatly appreciate any advice whatsoever, as obviously the money I am owed is a lot to me, but would be grossly out weighed by lawyers fees.
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Fluke
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I am the MD of a recruitment firm and I would strongly advise you to go to ACAS or citizens advice straight away. Although it is good practice (and a good selling point) for a recruitment firm to check out the client and candidate before introducing one to the other, it is not a legal requirement. However, what has happened to you is appalling & I really think you may have a case.
The client will have signed the recruiter's terms of business stating that he will pay the introduction fee within 30 days bla bla bla and the recruiter's will now take legal action to attempt to get their money from the client but that is a separate issue & nothing to do with you. The recruiter is not responsible for paying you any monies if the client employed you in a permanent capacity. Had you been on a temp contract, it would have been a different matter. Go to Citizens Advice or ACAS and they will help and instruct you on how to sue the client company for all monies owed to you. I believe you stand a good chance of winning your case. Good luck. |
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Cari
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Was it a permanent job or a temporary job? Because that's what makes the difference.
If you're a temp, then YES, the recruitment agency has to pay you, regardless of whether the client paid them. Your contract is with the agency, not the employer.
If you're a permanent employee, then NO, the recruitment agency is not liable. Only the employer can be forced to pay you any wages.
I understand your worry regarding legal fees in this situation, and in fact an employment tribunal is usually the only type of court where the losing party is not ordered to reimburse the other's costs. That said, it can often be very easy to represent yourself provided you have an ounce of intelligence (and you sound like you obviously do) and have access to your contract and any other documentation.
You should contact ACAS in the first instance (google them) who will advise on how to take the employer to a tribunal. It is not a quick process though, and you must lodge a grievance with the company first. |
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gail
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Your contract was with the company that employed you, not the agency so your fight is with them the employer.
Did you have an employment contract ? when you took this job? i am hoping you did have something as this is the only way that i can see you processing an application through the employment tribunal. You can process for a breech of contract but you must do everything you can to try and obtain the money from this employer first, and keep the evidence to show.
It maybe worth your while to stay in contact with the others that were also hired and not paid as collectively it may hold a lot of weight when trying to prosecute this con artist.
Ring ACAS and ask what your options are but this may cost you more money that you hope to gain.
Otherwise i would post on every forum board on the net this mans name where he is from and your bad experience with his mickey mouse company i would also contact all the websites that advertise jobs to make sure this doesn't happen again. |
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tigs
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I'm not a lawyer but i do know that if you were on a temp contract then the rec company were your employer and are liable to pay your wages, if you had been introduced by the agency but taken on permantly by the web design company then they are liable and not the agency.
Either way get legal advice from Citizens Advice or your union as there are ways the government can compensate for this sort of thing |
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