GB Ltd is an insurance broker. They engaged a specialist recruitment company to find an account manager,
which led to the employment of Finley by GB Ltd.
GB Ltd recently discovered that both GB Ltd and Finley are paying recruitment commission to the
recruitment company, of which neither were aware.
GB Ltd had specified to the recruitment company that all potential candidates must have at least two years'
account management experience. However, GB Ltd has since discovered, after employing Finley, that he
does not have the required level of experience.
(a) Explain, with justification, two legal issues raised by commission payments being made by both
GB Ltd and Finley. (6)
(b) Explain, with justification, the legal effect of the recruitment company's failure to ensure that Finley
had the required level of experience.
Sample Solution