Is it legal for a recruitment agency to charge money for recruitment?


There is nothing illegal about it. The recruitment agency is providing you a service for which they are charging you a service fee. Ultimately, it is upto you if you want their service or not which is a separate contract between you and the consultant.

This is something completely depend on the recruitment agencies for which industry they are dealing with. For example in some of the overseas recruitment Clients don’t pay charges to the consultancies so hunting candidates and sourcing them is there headache. So in that case there is a understanding between the Consultancy and Candidate, weather he wants to pay consultation fee to agency before getting job or after getting job from the certain percentage of salary through their agency. Paying charges or not paying charges to the agencies is completely based on Candidate’s wish. Agencies can not force anyone to pay. Secondly, there are some or many job portals for job seekers who ask candidates to pay online money to upgrade or keep there resume on top of there site or get relevant job alerts just to get a perfect job and soon as possible. So as I said above, if you are not comfortable if the agency is asking money for the consultation or recruitment then that would be your choice.

If the agency charges you for services, you must be given full written details of what they are. These should include your right to cancel or withdraw from the services. Your agency should give you a ‘key information document’ before you start with them. This should include things like the minimum hourly amount you should expect to be paid and what specific deductions will be made and why. It will also include information about any fees you have to pay to an umbrella company. You should get a new document if the key information changes. You’re also entitled to a written statement outlining a description of the job, and terms like holiday entitlement, hours of work and sick pay.

Reference: Section 2(h) of The Indian Contract Act, 1872



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