Debt Recovery for Recruitment Agencies

Placement fees and temporary staffing invoices can become difficult to recover when commercial terms, timesheets and candidate records do not align.

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THE RECOVERY CHALLENGE

Recruitment creditors often need to distinguish an accepted permanent placement fee from a contingent or disputed placement, and reconcile weekly temporary staffing bills to approved timesheets.

Permanent placement fee disputes

Review the signed terms of business, introduction trail, candidate start date, rebate or replacement clauses, invoice date and acceptance evidence. A placement dispute is not the same as an ordinary forgotten invoice.

Temporary labour and timesheet arrears

Weekly invoices may depend on approved hours, purchase orders, agency-worker adjustments or queries about rates. Resolve missing approvals and reconcile credits before contact escalates.

Who should receive the demand?

Check whether liability rests with the actual contracting employer, group entity or intermediary. Billing the wrong company or relying only on an agency contact’s statement can derail recovery.

Suitable collection approach

For straightforward unpaid business invoices, start with a documented reminder; use a posted letter or negotiated managed programme for repeat accounts. Serious disputes may need separate contractual advice.

Documents to have ready

Signed terms of business and relevant rebate clauses
Placement evidence or authorised timesheets
Invoices, credits and payments already received
Correct contracting client and finance contact

Sector question

Can a recruiter recover a fee when a candidate leaves early?

That depends on the agreement, any rebate or replacement provisions, and the facts of the placement. Confirm entitlement before instructing collection.

Sector-specific content describes Avencrest's proposed service approach. No existing client relationships, trading track record or sector contract is claimed. Debt types and operations require screening before work is accepted.