SINGAPORE: The High Court has upheld a decision for telco Circles.Life to pay a recruitment agency its placement fee for introducing a candidate who was later hired as head of legal.
At the centre of the dispute was the interpretation of SearchAsia Consulting’s terms of service, which said that if an introduction of a candidate results in a hire within 12 months, the agency would be entitled to the relevant fees.
The candidate, identified only as Ms C in a judgment published on Thursday (Oct 16), started working with Circles.Life in October 2024.
She was first introduced by SearchAsia Consulting on Mar 10, 2023, when it submitted her resume to the employer.
After interviewing several candidates, Circles.Life decided to hire another candidate, Mr S, who did not come through SearchAsia’s recommendation.
On Aug 30, 2023, Circles.Life informed SearchAsia Consulting that the position of head of legal had been filled.
Shortly after Mr S started his employment, Circles.Life decided that he was “not suitable for the company” and it began looking for a replacement.
On Oct 30, 2023, Circles.Life asked SearchAsia Consulting if Ms C was still available to take on the role of head of legal. She began working for Circles.Life as Head of Legal on Oct 1, 2024, more than a year after the recruitment firm first submitted her resume to the telco.
A lower court had decided that SearchAsia Consulting was entitled to a placement fee, ruling that the term “introduction” in the recruitment firm’s terms of service refers to the point at which a candidate is suggested during a “hiring cycle”.
High Court judge Choo Han Teck agreed with the district judge that the “introduction” for Ms C’s eventual employment occurred on Oct 30, 2023, when a fresh “hiring cycle” took place – that is, when Circles.Life asked SearchAsia Consulting if Ms C was still available.
“’Introduction’ within the terms of service should not strictly be construed based on its dictionary definition out of its proper context. Under the terms of service, ‘introduction’ must refer to the introduction of a candidate pursuant to a ‘hiring cycle’,” said Justice Choo.
He added that when Circles.Life was considering Ms C as Mr S’ replacement, it reached out to SearchAsia Consulting instead of communicating directly with Ms C.
“This act of communication constituted a fresh request of the respondent’s services,” said the judge.
“The assistance rendered by the respondent in this case is precisely the sort of assistance which warrants the reward of a placement fee.”
