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Fee Objection: ‘You Didn’t Sign Our Placement Service Agreement’

by | Oct 29, 2014 | Recruiter Training, Top Echelon Blog

Jeff Allen, the world’s leading placement lawyer, has collected more placement fees, litigated more trade secret cases, and assisted more placement practitioners than anyone else.  He’s also the author of 24 books and a regular columnist for The Fordyce Letter, one of the leading publications in the recruiting industry.

Below is Allen’s latest collection tip for recruiters who want to overcome a particular fee objection with one of their clients:

What the Client Says:

“You didn’t sign our placement service agreement.”

How the Client Ends Up Paying:

Placement service agreements (PSAs) are so draconian, demented, and demeaning.

Sometimes you aren’t told about PSAs until after the placement.  Other times, they’re sent to you, but the client doesn’t follow up by requiring the signature before working with you.  It’s the reverse of sending a fee schedule that requires the client’s signature, and then placing without its return.

Either way, the client will owe your full fee if you didn’t sign.  It could cost some HR functionary his or her job, unless you agree to some lower fee, refund guarantee, or extended guarantee.  They threaten, beg, plead, and eventually call in the Corporate Counsel Corps.  Let the employer lawyers march—they’re just on maneuvers.  All talk.

You’ve got the law and your fee schedule on your side!

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In addition to being the world’s leading placement lawyer, Jeff Allen is also a guest writer for the Top Echelon Recruiter Training Blog.  He can be reached via telephone at 310.559.6000 or via email at  Know how to collect your well-earned placement fees?  Test yourself!  Visit Allen’s Placement Law website and click the “Placement Fee Collection Quiz” button.

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