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The car dealership and recruitment agency

A car dealership hired Sue as receptionist through a recruitment agency. After four months, the dealership called the recruitment agency to say Sue was finishing up at the dealership and they were not interested in hiring a replacement temp. A few weeks later the recruitment agency became aware Sue was still at the dealership, paid directly as a contractor. 

Paying Sue directly as a contractor meant the dealership avoided paying both the temping fees and the placement fee of 15% of Sue's annual income that should have been payable under the contract if a temp was hired permanently. The agency took the dealership to court, which referred the matter for mediation with CJC.

The mediators helped the dealership and the agency to talk through the issues and identify some common ground. Both businesses were in the same area and had clients in common. It would be expensive and bad publicity for both of them to go to court.

The parties decided to avoid court by agreeing that the dealership would pay the agency about 50% of the amount claimed.

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