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Flay is one of the "mercenaries" that don't take a weekly wage in Jagged Alliance 3 and just like the others, Haemimont made his recruitment somewhat secret.
In order to get Flay on the roster, you will first need to visit the Poacher Camp in sector C5. Kill the Legion enemies and you will be able to speak with the group's leader, "Hyena" Gilbert who will tell you of his woes with Flay.
Since their former companion is hunting the poachers, Gilbert wants you to track him down and kill him.
At that point, you need to find three poacher corpses with antlers in them.
One is found in sector C6, just east of the Poacher Camp itself. Search the area until you spot the magnifying glass icon over a corpse and then examine it to register the clue.
The other two corpses are in sector B4, northwest of the camp. It's the same drill as before - clear the hyenas and then interact with the two corpses that have antlers.
You will need a squad member with 90 or higher Wisdom in order to get the prompt to get the recruitment option. If you don't have anyone with that much Wisdom, you can hire Barry for a few days and he will barely cost anything. Choose for him to land at Ernie island and then send him to the nearby port at B2 sector. It is easy to sneak past the enemies there to sector B3 and then reach the rest of the squad at B4. Alternatively, you can liberate the port first and then go for the last two antler corpses.
After you interact with the remaining two corpses in sector B4, Flay will walk out of the bushes and you can have a dialogue with him.
Don't bother telling him he's a psycho, just ask why he is doing it and then tell him he needs to stop.
DO NOT choose the "Why not hunt the Legion instead?" line as it will send him to hunt them alone. The correct question is "Want to hunt for us?*" which will prompt the Wisdom check.
Flay will then accept and ask if he can keep trophies of the enemies he killed. Despite the team's disgust over the notion, he will still keep something in his inventory to count the kills. The important part is that you now have a new sharpshooter that costs nothing on a weekly basis.
