Legal action for recruitment sector debts

Sterling collect the majority of debts without the need for legal action. If we believe that legal action is appropriate then we will contact you to explain the recommended approach, risks, likelihood of success and costs. It is then your decision as to whether you proceed.

*Sterling Debt Recovery uses an independent 3rd party solicitor working in our office. Graeme co-operates closely with our debt recovery team and works exclusively on debt litigation, with around 80% of his work being for the recruitment sector. His unrivalled understanding of the legal technicalities of the sector put him in a strong position when up against debtor’s solicitors who usually do not specialise in the sector. Our arrangement with Graeme allows us to offer his services at a low hourly rate, plus commission. Thus we retain the incentive to collect (rather than rack up chargeable hours as other firms often do!). If we believe that the evidence is weak, or if there is a chance that the debtor does not have the means to pay the debt, then we will advise you of the chances of failure and as to whether or not it is a sensible investment to proceed.

Sterling only commence legal proceedings with a written agreement from the client, so there is no risk of incurring cost without prior knowledge.

Terms of business and process review

We have found that the most commonly used terms (REC, APSCO and similar) have weaknesses that can cause loopholes in certain circumstances, or can reduce the amount recoverable compared to watertight terms.

Sterling’s solicitor will ensure your terms of business are watertight and put you in the strongest position to protect you against technical disputes which occur often with recruitment sector debts, especially in back door cases.

We are also able to offer our own terms of business for both permanent placements and temps/contractors. Extensive experience in litigation on recruitment sector debt since 2006 has given us a thorough understanding of the arguments commonly used by debtor’s solicitors. These can often be avoided by stronger clauses in the terms. Whilst being fair, our terms place the agency in the strongest position and make the position clear to the debtor, so that litigation is more often avoided.

Watertight terms of business will only protect you if they are incorporated in the correct way. Debtors can sometimes avoid payment due to the terms not applying because of the way/time in the process that they have been sent. Sterling can advise you on your processes to ensure your debtor has no loopholes to take advantage of should a back door hire placement occur.

Contact us to hear more about our terms of business and how we can advise on best practice.