Dear Connection,

Is it legal to take registration and placement fees (if the company payout is denied) from the candidate who is selected through an HR consultancy reference? If yes or no, please mention the supporting law with the reason. Also, please provide your valuable opinion.

From India,
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Dear Colleague,

If you are running a Manpower Placement Services on Paid Basis, then openly declare that to the Clients and Candidates transparently. Inform them what your charges are to get the candidate placed, which have to be nominal or reasonable and shall not burden the poor candidates striving for the jobs. You should act ethically, aligning with a maximum of 15 days (for example only) salary for your administrative work-related costs and a small margin for your expert service as profit, etc. What is important is that you need to declare and obtain an undertaking from the candidates agreeing to your terms, and inform your client organizations about your documented rules upon which you are connecting the candidates, everything transparently. You have to ensure the agreement is signed by the candidate who will be using your services. This then becomes a contract between you and the candidate. You may also charge them only upon successfully placing them as a fee, not prior. As long as you are not going to cheat candidates, you are genuine, entering into a proper agreement with candidates, and openly declaring it as a paid service without claiming any fees from the companies, etc., then there should be no problem. Any breach of ethical standards will lead to criminal actions, as we have seen in real-life incidents here and there. Kindly provide transparent service with all ethical standards within the legal framework allowed so that it operates smoothly.

From India, Chennai
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