Breach of Consulting Agreement: What legal steps may we take against the candidate?

I work for an IT staffing and consulting firm. We place applicants in top firms, but one individual was diverted from another consultant, and despite our orders not to go, the candidate joined the company through the other consulting. What legal steps may we take against the candidate?

Dear Jayasree,

To determine whether the candidate has breached the contract, we need to know the terms and conditions of the contract. Specifically, we need to ascertain if the contract was executed on stamp paper. If so, we require details on the value of the stamp paper. Additionally, we need to establish if any third party is involved in the contract and, if so, whether the third party was a signatory to the contract. Without the complete facts of the case, it is not feasible to provide any comments on the matter.

Thanks,

Dinesh Divekar

Can I understand that by staffing means a firm which provides candidates to companies in return for a service charge? I believe that in such scenario the staffing firm only does a marketing job, that he showcases the candidates, and the decision to take the candidate is with the company who will offer employment. It is also to be understood that the candidate has a choice, whether to join the company or not. There is no contract between the candidate and the staffing firm that the former should accept the offer given by the company. Then how can a staffing company take action against a candidate who chose to join another company?

There are a number of staffing companies available in the market, and for a candidate it is open to get the service of any firm. There will be instances that the same candidate may be sourced by different firms, and you cannot do anything against the candidate.

Hi Jayashree,

We take an undertaking from the candidate called "Right to Represent" (RTR), a form which is DocuSigned by the candidate. This form states that the candidate agrees to be exclusively represented only by our company for a specific client.

Additionally, we also take an undertaking regarding the candidate's Total Compensation (CTC) that has been negotiated with them. The candidate agrees not to share their salary details with the client or any other party.

Thank you.

So, from what I understand, you placed a candidate in a company. Then another recruiting firm offered him a job in the same company, and he took the job. You tried to stop him from taking the job, but he basically told you to take a hike.

Please tell me why you think you have a case against him or the agency. Is he your bonded slave that he has to continue to work with you for the rest of his life? If he got a job opportunity, why do you think he will give up a direct job to continue to be an outsourced resource through you?

And in case you are thinking you have a clause in your contract that he cannot take up the job, please read sec 27 of the Indian Contract Act, which makes such a clause in any contract invalid and unenforceable.

You can lodge a court case for a breach of the signed RTR. Further, I would like to inform you that your RTR would come under scrutiny because it is not a valid agreement.