Is There a Statute of Limitation when an Agency Headhunter Presents a Candidate to a Company?

Question

History

A few months back an agency headhunter reached out to me about head of engineering position in a Fintech company. I had four rounds of interviews, going up all the way to the CTO.

After the last round, the headhunter let me know they picked another candidate who had more experience than me, but they really liked my profile nonetheless (which was probably meant to just soften the blow anyway). To be honest, given my experience level (~5 years after PhD) head of software engineering was probably me punching above my weight.

But my interview experience was pretty decent, the folks seemed nice enough, and I connected to an interviewer on LinkedIn. Throughout the process, I didn't sign any legal contract with anyone, and neither did I engage the headhunter to find the job, it was all done by the company.

Recent Events

I noted a hiring in a similar role in the company, and straightaway reached out to the interviewer that I connected with earlier. He called me on a weekend for a chat to discuss the role (he categorically said it's not an interview, because it's on a weekend). He said for the previous position, they already hired a more experienced guy, but I will work with him closely, likely reporting to him.

He also said my interview is basically over and they are considering an offer, but need some paperworks and approval from finance before they can sign a letter.

Bottomline, I feel I have a pretty good shot at it.

Question

If the offer materialises, and I join the company, what's the implication for the headhunter? The interviewer (who is a director, an extremely technical guy) probably does not even know or care about headhunter retainer.

Should I inform the company or the headhunter about it at any point? If I do not, will my failure to do so have any impact on my continued employment? Given the small community and overlapping networks, I don't doubt the headhunter will find out at some point.

If the company wants to get out of paying the headhunter commission, they can make the argument it's a different role. But I am the same candidate the headhunter introduced about eight months back.

I like the company, and don't want to complicate it by myself proactively informing the headhunter about this. But if I don't, am I burning a bridge with the headhunter (who is also one of the better and more communicative, honest than most other headhunters I have worked with)?

Answer 1

Unless you signed a contract with the headhunter, you have no obligations here.

What obligations the company might have depend on the contract between the head hunter and the company (if any). You can't possibly know what the contract entails. (Nor can we).

You have no obligation to do anything here. If there is a contractual entanglement, it's up to the company to manage it, which they typically do with candidate tracking systems.

So the question becomes

"Should you bring it up pro-actively?"

Personally I vote for "yes". It scores you brownie points for being diligent, transparent and pro-active, which should be valued especially at a Fin Tec place. Chances are, they are aware of it anyway and most likely it's not a problem (8 months past, different role).

Even if they have an obligation that they are NOT aware of, they will appreciate being made aware of it so they can deal with it now rather than getting sued by the recruiter later. There is a tiny risk that they would back away from you to save the recruiter fee, but I consider this to be unlikely.

The interviewer (who is a director, an extremely technical guy) probably does not even know or care about headhunter retainer.

Maybe, but their candidate tracking system and or HR should be aware of it. Otherwise it would be impossible to meet any contractual obligations (if they have them).

Should I inform the company

Yes. See above

or the headhunter

No. Unless you signed a contract saying you should.

If I do not, will my failure to do so have any impact on my continued employment?

Worst case here is that you get hired, the company gets sued and a royal mess ensues. This is in no way your fault, but it won't help your career either.

But I am the same candidate the headhunter introduced about eight months back.

Not your problem. You can't know what exactly the contract says (if any)

But if I don't, am I burning a bridge with the headhunter

I don't think so. You are not privy to the contract and its unreasonable to expect you assisting in managing a contract that you don't know anything about. Unless the headhunter specifically asked you to do something, you have no moral or legal obligation here.

Answer 2

Did you sign any contract with the headhunter? If so, read it and act accordingly. It is very likely you have to pay them, most contracts concern any position you take with a company they introduced you too for as long as a year where I live.

But you said you were approached. So it seems likely the company paid the headhunter. So this is none of your business. The contract exists between the headhunter and the company and it is their obligation to know what terms are in there. It is not your place to tell the company how to act upon their contracts. Something like "hey, don't forget to pay the headhunter" will probably not go over very well. Especially not if you put it in writing.

If you think you must interfere in their business dealings with third parties, then at least be sneaky about it and do it in form of a question about your end of the business deal:

Hey HR, I remember there was a headhunter involved. I don't have to do anything in that regard, I just sign this contract and we are good, right?

Answer 3

If the agency introduces a candidate to a company, usually the contract between agency and the company states that if the candidate gets hired within a year with agency involved OR not, then the company has to pay 10% of the initial annual salary to the agency.

This is a standard practice in the industry. It keeps companies from burning agencies who make introductions between companies and candidates.