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Is it legal for a recruitment consultancy to charge money?


25-Jul-2024 (In Civil Law)
Hello, I was searching for a job a month ago and found a vacancy advertised by a company that did not disclose the name of the school the position was for, only the profile was advertised. It turns out a consultancy was recruiting for the school and is charging 50% of the salary plus 18.5% GST. Is it legal for a consultancy to charge candidates for securing a position? Do job consultants charge money, and are there any regulations regarding job consultancy registration fees?
Answers (3)

Answer #1
482 votes

Legitimate and reputable job consultancies typically do not charge candidates any upfront fees, as their payments usually come from the hiring company once a successful placement is made. If a consultancy asks for a registration fee, security deposit, or any other payment before offering a job, it should raise immediate red flags. While some smaller or less trustworthy agencies may try to justify these charges, it often signals a potential scam or unethical practice. Job seekers should always verify the credibility of a consultancy and avoid paying for job opportunities.

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Advocate Chikirsha Mohanty

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Answer #2
559 votes
See it depends on the terms of the contract and if it was an invitation to offer then the consultancy may charge their fees as per their rules and regulations and you would be bound by that. However the terms of the contract must be spelled out in the beginning itself and must not be unconscionable.
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Advocate Samyak Raj

Adv. Samyak Raj

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Answer #3
748 votes
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. The advantage of contracting with a consultant is that he gets paid from both the sides i.e. the employer as well as employee. so the chances of his pushing your resume ind having it shortlisted is greater.
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Advocate Anuj Dewan

Adv. Anuj Dewan

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