Recruitment, Provision of Labour and Contract Care Services

Are you in the recruitment, provision of labour or contract care industry? We have put together a selection of case studies from clients we have helped within these industries.

Care Services

Debt: £380,000

Challenge: We were appointed by our client, who had been pursuing a local authority for over 9 months in respect of a dispute regarding invoices for care services provided.

Solution: Our first step was to fully reconcile the outstanding invoices with the purchase orders, rates agreed and timesheets. Following the reconciliation, we were able to establish with the debtor that the only error of dispute related to the rates to be charged. Initially the debtor would not engage further and as a result of the pre-work we had carried out, we were able to offer our client our no cost litigation service. Particulars of claim were drafted and sent to the debtor which resulted in mediation.

Result: Settlement of £335,000 achieved and a delighted client.

Recruitment Care Industry

Recruitment (Care Industry)

Debt: £25,000

Challenge: Our client provided temporary recruitment placements for the care sector. The debtor had stopped paying for the weekly staff provided and over a period of 4 months, the debt had increased to £25,000

Solution: Initially, the debtor refused to engage. However, it was clear they were still trading and receiving payments from the local authority, for the care given by the staff our client had provided. Following a letter before claim, we managed to agree an instalment arrangement based on the payments due to be received. Whilst £10,000 was paid, the debtor missed payments for 1 – 2 months and stopped engaging. A statutory demand was issued for service of a winding up petition.

Result: To avoid the company being wound up, the debtor paid the remaining balance over 2 months to include all costs and interest. Total of £38,000 collected.

Recruitment Agency

Recruitment Agency

Debt: £5,500

Challenge: Our client provided temporary and permanent recruitment placements. The debtor had initially taken a temporary placement and the weekly recruitment fees were paid. After 2 months, the member of staff was made permanent, but the debtor refused to pay the permanent placement fee, in accordance with terms and conditions.

Solution: Initially, we received no engagement from the debtor. A letter before action issued and a response received from both the debtor and their lawyers, claiming to be unaware of the permanent placement fees. The contract was clear and evidenced to the debtor, who failed to respond. We then filed Court papers. 

Result: Following the filing of court papers, the debt was settled in full – £6,900 was received, which included all costs and interest, before the date for the hearing.

Recruitment Company Case Study

Recruitment Company

Debt: £6,000

Challenge: Our client provided permanent placements. They discovered that the debtor had taken on an employee and not advised our client. My Debt Recovery was instructed 5 months later.

Solution: The debtor initially denied liability and became hostile. On behalf of our client, we issued a Letter before Claim. A 6-week payment plan was agreed to recover the debt but payments were missed so we filed court papers. A Judgement was obtained and payments recommenced for the originally agreed term.

Result: Debt collected in full over 6 weeks, plus all costs and interest totalling £7,500.

When is the Right Time to Instruct a Commercial Debt Recovery Agency?

Recruitment Agency

Debt: £5,000

Challenge: Our client provided temporary and permanent recruitment placements. The debtor had previously taken temporary placements however on this occasion took on a permanent placement referral. Debtor refused to pay the permanent placement fee in accordance with the terms and conditions of engagement. Having not been paid for over 4
months the debt was placed with My Debt Recovery.

Solution: Initially no engagement from the debtor. Letter before action issued and a response received from the debtor claiming hours worked by the placement had ended up being a lot less than envisaged (partly due to COVID) and they should not be paying the full fee. The contract provided for our client’s fees as a % of annual salary agreed. Debtor continued to avoid any payment.

Result: Court papers drafted and debtor paid the account value but not the interest, late payment fees and debt recovery costs. Court papers filed for the interest and fees, judgement obtained and a further payment of £1750 received. Total paid £6750, debt settled in full including all costs and interest ensuring our client was not out of pocket..

Are you in a similar situation to our clients?

If so, get in touch to find out how we can help you.

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