Well, it's been a long time since I have posted but you know how things go in the summer. Getting back to my last post, I really do think that clients do not have the right to ask a recruiter referred candidate who they know and then go ahead and hire them without paying a fee. I do feel that if the referred candidate gets hired and then refers someone, the company is not required to pay a fee on it.

In my agency agreements, we have the following clause:

"Any referrals generated through discussions or interviews with any candidate submitted by Davis Search Group subsequently hired by Employer shall be deemed direct hires from Davis Search Group and subject to the terms and conditions herein. Employer agrees to notify Davis Search Group of any and all such referrals so that Davis Search Group can assist in facilitating the hiring process".

In most cases, prospective clients have no issue with this and do their very best in order to ensure that all parties are protected. Occassionaly, they do have an issue. My stance is one of non negotiation on this point. It should also be a non negotiating point for every recruiter.