Managing fee disputes – keep a paper trail

We had another successful TEAM meeting in London last week with the Executive and Specialist Recruitment  group coming together to share ideas and network. The conversations were extremely energetic and we were all very encouraged by the vast number of split fee opportunities shared at the beginning.

However, one new theme which went down a treat was sharing best practice when it comes to working better and smarter as recruiters. It was from these discussions that the issue of how to manage fee disputes cropped up. With the economic situation leading to businesses tightening budgets and looking to reduce costs in every possible aspect, it’s safe to say that we've all faced tough negotiations for work.

What we all seem to be facing, though, are even further challenges once placements have been made. There was a lot of talk about clients challenging or refusing to pay invoices which have been submitted – something which can have a huge impact on independent recruiters. 

At TEAM we understand that when it comes to fee disputes it’s often difficult and expensive to seek legal advice. As such, we have a free legal advice line available to all members, so if you are in the situation where you need legal help, do contact the helpline.

Obviously, though, prevention is the best solution and this situation is something which we all wish to avoid. And whilst you can’t stop clients from being difficult, you can make sure you have the documentation you need to ensure you get paid. Make sure that any agreement is written down in an email or letter so when clients challenge you, you’re able to present them with the original agreement. If any conversations happen over the phone, make sure you follow up with an email outlining the main points. This note only gives you a record for the future, but provides an opportunity to clarify the conversation and ensure noting was misconstrued.

I would advise anyone to do this regardless of the relationship they have with their client. There have been cases of long standing clients suddenly challenging invoices so never rely solely on previous experiences – you never know what can happen in this turbulent climate!  

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