Why "We Already Knew the Candidate" Isn't Always a Valid Defence
One of the most common reasons clients give for refusing to pay a recruitment fee is claiming they already knew the candidate.
Most recruiters have heard it before:
"We already know this candidate."
Perhaps they previously applied for another role. Maybe someone connected with them on LinkedIn. Or perhaps another agency introduced them months ago.
Whatever the explanation, many recruiters simply accept the client's position and walk away.
But in many cases, they shouldn't.
If your Terms of Business are robust, you've followed the correct recruitment process, and you've acted as the effective introducer, the client may still be contractually obliged to pay your fee.
Prior Knowledge Doesn't Always Mean No Fee
Simply knowing who a candidate is doesn't necessarily remove a client's obligation to pay.
The key issue is whether the candidate was already under consideration for that specific vacancy before your introduction.
If they weren't, and your introduction led to the placement, your agency may still have every right to invoice.
Here are four practical steps that can help protect your recruitment fees.
1. Review Your Terms of Business
Your Terms of Business should clearly define when your agency becomes the Effective Introducer.
Ideally, your terms should confirm that:
- The candidate was not already being considered for the specific vacancy.
- Your introduction directly or indirectly resulted in the placement.
- Your Terms of Business have been accepted by the client.
Remember, terms don't always need to be physically signed. If they have been issued, accepted and not challenged or replaced by the client's own terms, they may still be enforceable.
It's also worth remembering that if a hiring manager connects with a candidate on LinkedIn after you've introduced them, that doesn't automatically make the client the effective introducer.
2. Confirm Candidate Representation Before Submission
During your interview process, ask every candidate whether they have:
- Already applied for the position.
- Been approached by another recruiter.
- Spoken directly with the employer.
If the answer is no, ask them to send a simple email confirming:
- they haven't previously discussed the role;
- no one else has introduced them to it; and
- they wish your agency to represent them.
Protect Against Direct Applications
Unfortunately, some candidates decide to "cover their bases" by applying directly after you've introduced the opportunity.
I've even encountered situations where employers have encouraged candidates to do exactly that, offering to split the recruitment fee they would otherwise have paid the agency.
One way to reduce this risk is ensuring your consultants thoroughly sell the opportunity before revealing the employer's identity wherever possible.
3. Follow the Conduct Regulations
In the UK, the Conduct of Employment Agencies and Employment Businesses Regulations require recruiters to confirm that a candidate is willing to work in a role before making an introduction.
That means obtaining their agreement before submitting an identifiable CV.
If a client later argues they received the candidate's CV elsewhere, your documented compliance with the Regulations can strengthen your position that your agency made the effective introduction.
4. Ask Clients to Prove Prior Knowledge
If a client insists they already knew the candidate, ask them to provide evidence.
Well-drafted Terms of Business should require the client to produce time-stamped evidence demonstrating that:
- they already possessed the candidate's details; and
- the candidate was actively under consideration for that specific role before your introduction.
Without evidence, "prior knowledge" is simply an assertion.
Don't Be Intimidated Into Walking Away
Another common response is:
"We're disappointed you're taking this approach. It'll damage our relationship."
In reality, if you've complied with your contractual obligations and introduced the successful candidate, it's not you damaging the relationship.
A client who refuses to honour agreed terms may have avoided paying recruitment fees before—and may do so again.
Recruiters deserve to be paid for the value they create.
Strong Processes Protect Revenue
Recovering unpaid recruitment fees is always easier when your business has:
- Clearly drafted Terms of Business.
- Consistent candidate qualification procedures.
- Written confirmation of representation.
- Accurate CRM records.
- A documented submission process.
Good processes don't just reduce disputes—they protect your profitability.
About the Author
Alison Humphries has helped recruitment businesses recover and protect more than £300,000 in recruitment fees over the past two years by strengthening their Terms of Business, improving internal processes and ensuring consultants understand how to apply them consistently.
As a hands-on Board Advisor to recruitment businesses, Alison works with agency owners to improve commercial performance, reduce risk and maximise profitability through practical, proven processes.
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