Australian recruiter loses placement fee battle

Australian website Recruiter Daily reports that a New South Wales court has thrown out a recruitment firm’s claim to be paid an AUS$11,000 (£6,050) placement fee for a candidate who left a job he found too difficult soon after he started.

The judge found that Alliance Recruitment had a duty to “take reasonable steps” to confirm his suitability for the job at Woodland Home Products — even though the recruiter’s contract said it couldn’t be held responsible for the candidate’s competence.

Will Winch, solicitor at law firm Mishcon de Reya, says: “This case highlights the need for companies to enter into well drafted contracts.  Normally, it would be usual for a contract to contain some sort of clawback provision in the event that the candidate turns out to be unsuitable for the role, and this would avoid the uncertainty present in this case.”

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