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Agency as Cause of Employment

An employment agency should be the main cause for the employment of a particular person, in order to be entitled to a fee.  In other words, the employment agency should have been the sole reason for finding an employee for the employer or procuring employment to the employee.  The employer should not have pursued and hired the employee, but the agency should have hired the employee by its own effort.

The contract between the employment agency and the employer or employee shall determine the fee or commission payable to the employment agency and if there is any causative nexus between the agency’s efforts and the procurement of a job by an employee.  Sometimes, the contract may provide that a commission shall be payable to the employment agency even if the effort of such agency was not the direct  or procuring cause of employment.  However, in certain contracts between the employment agency and employer, such a causal relationship is not required.

The fact that an employee was hired for another position other than the one applied for does not abolish the fee arrangement between the employment agency and the employer.  If an employer uses the information of an applicant collected and identified by the agency for another employer, the agency shall be entitled to a fee.


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