Unpaid invoices are one of the most common and disruptive challenges faced by recruitment companies. When a client refuses to pay, despite successfully placing a contractor or candidate, it puts immediate pressure on cash flow and can affect the financial stability of the business.
Our Debt Recovery team recently acted for a recruitment company dealing with exactly this issue. Several of their invoices remained unpaid by construction companies who had engaged contractors placed by our client. Here’s how we helped and how our new debt recovery product can support you too.
The Issue: Construction Companies Refusing to Pay Invoices
The construction companies attempted to justify the unpaid invoices by claiming the contractors lacked the necessary experience to undertake their roles on site.
However, a detailed review of the recruitment company’s contract uncovered two key points:
- The contractors had been thoroughly vetted before being put forward for the assignments.
- The construction companies were contractually responsible for confirming each contractor’s suitability before allowing them onto site.
With this clear contractual position, it became evident that the reasons for non-payment were not valid.
The Result: Full Payment of Unpaid Invoices (Plus Costs)
We successfully argued our client’s case and secured:
- Full payment of all outstanding unpaid invoices
- Recovery of legal costs
This meant our client faced no financial loss, no prolonged dispute, and was able to reinforce the strength of their contractual terms for future engagements.
Are Unpaid Invoices Affecting Your Recruitment Business?
If you’re a recruitment company struggling with unpaid invoices after successfully placing a candidate or contractor, you’re not alone, and we can help.
Our Debt Recovery team has significant experience acting for recruiters across multiple sectors who have not been paid in accordance with their contractual terms.
Our Debt Recovery Product: Fast, Clear, and Contract-Focused
Our structured debt recovery service is designed to help recruitment companies take swift action on unpaid invoices.
1. Contract Review
We assess your agreements and terms to confirm your legal entitlement to payment and identify the strongest recovery route.
2. Letter of Demand (14 Days to Pay)
We issue a clear and legally robust letter of claim, giving your debtor 14 days to settle the unpaid invoice.
3. Court Proceedings (If Required)
If no payment is received, we will issue proceedings on your behalf and guide you through the process from start to finish.
4. Fixed-Fee Transparency
We offer fixed fees for both:
- Letters of claim
- Issuing court action
This ensures complete clarity and cost-certainty.
Get Help Recovering Your Unpaid Invoices
If unpaid invoices are holding your agency back, taking action early is crucial.
To discuss your situation or learn more about our debt recovery product, please contact our team today on 0800 118 1500 or complete our form below. We’re ready to help you recover what you’re owed quickly and confidently.
Disclaimer
The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional. The contents of this blog refers to the process in England and Wales.
This blog was written by Tessa Rhodes, Associate & Debt Recovery Manager, in our Dispute Resolution Team.