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Recruitment

Cubism Law offers specialist services to the recruitment sector. The team consists of Anya Bloom, and David Buckle who often act effectively as in-house advisors to recruitment firms.

They have extensive experience working with recruitment businesses, from startups to floated companies.

Corporate structure advice

Most recruitment business owners are looking towards their eventual exit strategy. To achieve this in the most efficient way, proper foundations need to be in place including some or all of the following:

  • Shareholders Agreements
  • Consideration of LLP Status
  • Directors Service Agreements

Protecting your commercial interests

As the business grows there are three main areas of concern:

1. Protecting your assets 

The assets which are principally the people and the relationships must be protected. This is often through the enforcement of restrictive covenants against leavers who look to exploit candidate and client contacts that belong to the organisation.

The protection of such information can be secured by way of emergency application to the Court called an injunction.

Damages may also be available if the use of such information can be proved to have created a financial loss.

2. Cashflow, debt & credit issues 

Equally the business must be satisfied that it can recover all sums invoiced. A large credit problem can be devastating to balance sheets particularly in contractor focused businesses and if factoring or invoice discounting is being utilised.

There are two central legal features that maximise recovery:

Proper terms of business with clients, candidates and contractors together with a workable policy to ensure that they are used on every occasion.

 

Proper debt collection processes are critical as is the effective collection of any debt. This can be achieved through the use of proceedings, statutory demands and winding up petitions. 

3. Managing commercial contracts  

The business must ensure that all of its supplier contracts and accommodation needs are suitable for its business and are commercially sensible. 

It is for the individual businesses to decide what commercial terms it considers appropriate.

Employment law issues for recruitment firms

1. Employment law

As an employment lawyer with over 13 years’ experience, David can provide assistance with all aspects of employment and agency relationships including: hiring and firing of employees, bringing and defending claims in the Employment Tribunals, the protection of business interests from errant employees and the setting up and structuring of remuneration bonus and share schemes.

2. Recruitment and temporary worker legislation

There are a number of regulatory and legal issues which affect may their business, for example, arising from:

  • The Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003
  • The Agency Workers Regulations 2010
  • The Equality Act 2010
  • Data Protection
  • IR35/CIS