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Euro London Appointments Ltd v Claessens International Ltd, Court of Appeal 6.4.06

The Liverpool County Court ruled in 2005 that a clause in an employment agency's standard terms was unenforceable as it was in the nature of a penalty. The Court of Appeal has allowed the agency's appeal. The clause in question provided that a refund of fees to a client (ie hirer/employer) who dismissed an agency-provided employee within a specified period would not operate if the hirer was more than seven days late in paying the agency's fee.

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