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6th February 2024

Importance of recording conversations with clients in the event of a breach

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6th February 2024

Importance of recording conversations with clients in the event of a breach


As a recruiter, your business depends on your ability to place candidates and receive payment for your services. However, disputes with clients over payment can subsequently arise, and it is essential to be prepared to prove the terms of the contract in place in the event of a breach.

Verbal conversations can be a valuable source of evidence in these situations, but only if they are recorded properly (either in writing or through audio-recording). Here’s why recruiters need to be careful to record verbal conversations that they may later need to rely on, and some examples of how this can impact a recruiter’s ability to recover fees lawfully owed to them.

Accuracy and clarity

Recording verbal conversations provides an accurate and clear record of what was said, who said it, and when it was said. This level of detail can be crucial in proving the terms of the contract and any subsequent conversations or agreements made. The more clarity that exists, the less is left to interpretation and discretion.

Avoiding disputes

Recording verbal conversations can help to avoid disputes altogether. If a client disputes the terms of the contract or the conversation that took place, an audio-recording can be played back to show exactly what was said. If recorded in writing, then record as much information as possible; the time, date and duration of call; who you spoke with and what was said. We have seen plenty of abbreviated notes on many client’s CRM systems that require interpreters to explain to a court what the notes mean. If the conversation was important enough to log, it’s important enough to spend time recording properly just in case a dispute ever arises (and they do).

Legal compliance

Audio-recording verbal conversations is legal, as long as all parties involved are aware that the conversation is being recorded. Failing to obtain consent can lead to issues relating to admissibility; undermine the validity of the recording and may lead to you being unable to rely on such vital evidence.

Example of failing to record a conversation

A recruiter has a conversation with a client over the phone about the fees in advance of a successful placement. Following the candidate being engaged, the recruiter claims that they agreed to a specific fee, but the client disputes that any such conversation took place and remains resolute that the client would never agree to pay above ‘x%’.

Without any evidence to prove that the conversation occurred or the agreed-upon terms, the recruiter is left with little recourse to recover the fees owed to them (or at least not at the level that had been agreed between the parties orally). This particular recruiter is going to learn the hard way if they issue proceedings that failure to be diligent in the first place can result in months of litigation, unnecessary legal fees and no guarantee of success at a hearing. Record agreed terms; a very basic (but often forgotten) necessity to avoid later conflict.

Example of recording a conversation

Another recruiter has a conversation with a client over the phone about the fees ahead of a successful placement. The recruiter records the conversation (either with a follow-up email or by audio-recording with the client’s consent) and agrees on a specific fee. Later, the client disputes the fee agreed upon (again claiming that the client has never agreed to pay above ‘x%’ for a placement), but the recruiter is able to play back the recording or refer to an email that immediately followed the call, to prove that they had agreed on the fee and that the recruiter had then relied upon the client’s representations and agreement. The recording provides clear evidence of the conversation and the agreed-upon terms, allowing the recruiter to recover the fees owed to them. This particular recruiter, if they are forced to issue proceedings, will be able to rely upon the recorded conversation to apply for summary judgment, avoid the months of litigation, save unnecessary costs and recover the fees owed.

Conclusion

In conclusion, recording verbal conversations can be a valuable tool for recruiters in the event of a breach of contract. It provides an accurate and clear record of what was agreed; avoids disputes and ensures legal compliance. Failing to record conversations can leave recruiters without any evidence to prove their case. Recruiters should be careful to record all relevant conversations and ensure that all parties involved are aware of any audio-recording, to avoid any legal complications and to hugely improve prospects of success if a dispute subsequently arises.

If you are a recruiter experiencing an issue with a client over agreed terms, please do get in touch with a member of the team.

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