Dear Seniors & Colleagues,
These days, many employers are deducting from employees' salaries to pay for consultancy services. Although they are doing this with the consent of employees, the question arises: is this practice legal? And if it is legal, what is the safest way to implement this method? I am seeking your kind attention on this matter.
Warm Regards, GreatWhite
From India, Kolkata
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2These days, many employers are deducting from employees' salaries to pay for consultancy services. Although they are doing this with the consent of employees, the question arises: is this practice legal? And if it is legal, what is the safest way to implement this method? I am seeking your kind attention on this matter.
Warm Regards, GreatWhite
From India, Kolkata
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Dear Friend, More than legal its not ethical practice. Employer’s are hiring any employee through consultant to get good talent from market. Then employer should pay for that.
From India, Mumbai
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From India, Mumbai
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Dear,
Recruiting people is a requirement of the company, and selecting the mode of recruitment is the choice of the company. If a consultant is hired by the company, why should the employee (candidate) have to pay charges, unless it has been previously discussed and approved by the employee?
As stated by Mr. Praveen Kumar, it is ethically incorrect and also not legal. It is an unauthorized deduction if the employee does not consent to it.
We should not accept this practice and should raise our voices against it.
From India, Mumbai
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Recruiting people is a requirement of the company, and selecting the mode of recruitment is the choice of the company. If a consultant is hired by the company, why should the employee (candidate) have to pay charges, unless it has been previously discussed and approved by the employee?
As stated by Mr. Praveen Kumar, it is ethically incorrect and also not legal. It is an unauthorized deduction if the employee does not consent to it.
We should not accept this practice and should raise our voices against it.
From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply is partially correct. It is legal for employers to deduct consultancy fees with employee consent. However, the statement that it is not legal is inaccurate. Employees must agree to such deductions. It is essential to ensure transparency and compliance with labor laws.
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Dear Seniors,
Thank you very much for your attention. Here in WB, most of the companies do not pay anything to HR Consultants. Due to the terrible job market in WB, competition among the consultants is really high, along with the abundance of educated youth who are desperately seeking employment. In such circumstances, employers have the final say.
If a consultancy is reputable, they often require candidates to sign an agreement where they are obligated to pay their first month's salary in 2/3 EMIs to the consultants. However, many candidates attempt to deceive the consultancy by avoiding payment of their dues.
Therefore, consultants are now making necessary adjustments to their agreements and requesting that companies deduct the salary from the candidates and remit it to them. Some employers are taking a different approach by requiring candidates to communicate with consultants and obtain a No Objection Certificate (NOC) before issuing an offer letter. Candidates typically pay the consultancy when obtaining the NOC.
I believe that everything is legal if one understands the loopholes in the law, and the most unethical aspect of life is starvation.
However, the question remains: Is it legal if everything is happening with the consent of the candidates?
Please take the time to comprehend the situation and provide me with advice.
Warm Regards,
GreatWhite
From India, Kolkata
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Thank you very much for your attention. Here in WB, most of the companies do not pay anything to HR Consultants. Due to the terrible job market in WB, competition among the consultants is really high, along with the abundance of educated youth who are desperately seeking employment. In such circumstances, employers have the final say.
If a consultancy is reputable, they often require candidates to sign an agreement where they are obligated to pay their first month's salary in 2/3 EMIs to the consultants. However, many candidates attempt to deceive the consultancy by avoiding payment of their dues.
Therefore, consultants are now making necessary adjustments to their agreements and requesting that companies deduct the salary from the candidates and remit it to them. Some employers are taking a different approach by requiring candidates to communicate with consultants and obtain a No Objection Certificate (NOC) before issuing an offer letter. Candidates typically pay the consultancy when obtaining the NOC.
I believe that everything is legal if one understands the loopholes in the law, and the most unethical aspect of life is starvation.
However, the question remains: Is it legal if everything is happening with the consent of the candidates?
Please take the time to comprehend the situation and provide me with advice.
Warm Regards,
GreatWhite
From India, Kolkata
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(Fact Check Failed/Partial)-The practice of deducting employee salaries to pay consultants is generally not legal. It violates labor laws on wage deductions. Seek legal advice.
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Sir(s),
I believe that payment to recruitment consultants out of the first salary or subsequently in installments is not allowed by the Payment of Wages Act. Employers cannot arbitrarily deduct any amount from their employees' salaries (wages) in the form of payment to consultants.
Thank you.
From India, Noida
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I believe that payment to recruitment consultants out of the first salary or subsequently in installments is not allowed by the Payment of Wages Act. Employers cannot arbitrarily deduct any amount from their employees' salaries (wages) in the form of payment to consultants.
Thank you.
From India, Noida
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(Fact Check Failed/Partial)-The user reply is incorrect. According to the Payment of Wages Act, employers can make deductions for services provided by third parties if there is a prior agreement with the employee. It is legal but must be done with employee consent.
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What sort of advice do you want, Mr. Great White?
Though it is not discernible for whom you've raised this question, it clearly shows your concern for the sordid state of affairs in the matter of private recruitment in your state. So, nobody can give you better advice than yourself.
If you are an employer, don't hire the services of a Recruitment Consultant. Do all the spade work yourself, from screening applications to short-listing final candidates. When the consultant does all this, including creating and up-dating his own database of suitable candidates likely to be needed by industries in his area of operation, ascertaining their skill levels and expertise, sometimes with the help of paid associates well-versed in the respective field, thereby saving a lot of your time and energy, is it not fair that he should be suitably compensated by you? When you refuse and instead allow the consultant to collect the recruitment fees from the candidates selected by you, that too at times through yourself in fixed and periodical installments, apparently with the consent of the moot new recruits, though not being a legal contravention for in each stage you have intelligently plugged the gap, certainly it seems not only unethical but also quite unprofessional.
If you are a prospective employee, don't agree to such terms and conditions relating to the cost of recruitment. Once agreed, please do not complain about it.
If you are a recruitment consultant, don't charge anything from the job-seekers other than a nominal registration charge to maintain their names alive in your database. Make it clear to the employers seeking your services that they alone will be charged a definite service charge for every selected candidate, inclusive of the costs of all the processes preceding the submission of the list of final candidates.
From India, Salem
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Though it is not discernible for whom you've raised this question, it clearly shows your concern for the sordid state of affairs in the matter of private recruitment in your state. So, nobody can give you better advice than yourself.
If you are an employer, don't hire the services of a Recruitment Consultant. Do all the spade work yourself, from screening applications to short-listing final candidates. When the consultant does all this, including creating and up-dating his own database of suitable candidates likely to be needed by industries in his area of operation, ascertaining their skill levels and expertise, sometimes with the help of paid associates well-versed in the respective field, thereby saving a lot of your time and energy, is it not fair that he should be suitably compensated by you? When you refuse and instead allow the consultant to collect the recruitment fees from the candidates selected by you, that too at times through yourself in fixed and periodical installments, apparently with the consent of the moot new recruits, though not being a legal contravention for in each stage you have intelligently plugged the gap, certainly it seems not only unethical but also quite unprofessional.
If you are a prospective employee, don't agree to such terms and conditions relating to the cost of recruitment. Once agreed, please do not complain about it.
If you are a recruitment consultant, don't charge anything from the job-seekers other than a nominal registration charge to maintain their names alive in your database. Make it clear to the employers seeking your services that they alone will be charged a definite service charge for every selected candidate, inclusive of the costs of all the processes preceding the submission of the list of final candidates.
From India, Salem
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(Fact Check Failed/Partial)-[The user reply contains some misconceptions. In many jurisdictions, it is illegal for employers to deduct recruitment fees from employees' salaries. This practice can violate labor laws and fair employment practices. Employers should bear the costs of recruitment, and employees should not be financially burdened for seeking employment. It's essential to adhere to legal and ethical recruitment practices to ensure fairness and compliance with the law.]
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This practice seems to be more prevalent at entrance levels. The consultant, as said above, does make a lot of efforts. At the same time, the fact is that many candidates at entrance levels would drop a job at a moment's notice - many such discussions on this board itself.
In such a scenario, how does the employer ensure some stability during a period where most probably he is just training the freshers regarding their job, etc.? And on top of that, should he also add on the consultant's fees? To me, this seems like a retention move. As long as it is done with transparency and concurrence of all concerned, it could be a valid contract.
The levels we work in, this is not generally the practice. However, I am aware of consultancies that charge candidates, even at executive/managerial levels - and some of them have turned out to be scams - Ladders, for example.
From United States, New York
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In such a scenario, how does the employer ensure some stability during a period where most probably he is just training the freshers regarding their job, etc.? And on top of that, should he also add on the consultant's fees? To me, this seems like a retention move. As long as it is done with transparency and concurrence of all concerned, it could be a valid contract.
The levels we work in, this is not generally the practice. However, I am aware of consultancies that charge candidates, even at executive/managerial levels - and some of them have turned out to be scams - Ladders, for example.
From United States, New York
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(Fact Check Failed/Partial)-The user's reply contains some valid points about consultant fees and retention strategies. However, it is crucial to clarify that deducting consultant fees directly from an employee's salary should be done with explicit consent and in compliance with labor laws to avoid any potential legal issues.
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Dear Seniors,
I agree with Mr./Ms. Hardeep Sodhi. That practice is not for Mid-Level or Senior-Level Employees. It's only for Entry-Level Employees because retaining these people is always very difficult. Hence, the recruitment for Entry-Level Staff is always a "Real Huge Task." We outsource those tasks to Recruitment Consultancies so that we can concentrate on the recruitment of Mid/Senior-Level employees.
Candidates generally pay their one-month salary to consultancies in three EMIs. Once they pay the first-month EMI, we issue them the Offer Letter. After three months, if they pay the full amount to the consultancies, we provide an Appointment Letter to the employees. We maintain absolute transparency throughout the entire process. Most of the time, those who stay three months in the system, then a higher number of them stay in the system. So, it may sound bizarre, but believe me, it's a useful retention tool. It also serves the purpose of my employer and the consultancies.
Thanks for the advice.
Warm Regards,
GreatWhite
From India, Kolkata
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I agree with Mr./Ms. Hardeep Sodhi. That practice is not for Mid-Level or Senior-Level Employees. It's only for Entry-Level Employees because retaining these people is always very difficult. Hence, the recruitment for Entry-Level Staff is always a "Real Huge Task." We outsource those tasks to Recruitment Consultancies so that we can concentrate on the recruitment of Mid/Senior-Level employees.
Candidates generally pay their one-month salary to consultancies in three EMIs. Once they pay the first-month EMI, we issue them the Offer Letter. After three months, if they pay the full amount to the consultancies, we provide an Appointment Letter to the employees. We maintain absolute transparency throughout the entire process. Most of the time, those who stay three months in the system, then a higher number of them stay in the system. So, it may sound bizarre, but believe me, it's a useful retention tool. It also serves the purpose of my employer and the consultancies.
Thanks for the advice.
Warm Regards,
GreatWhite
From India, Kolkata
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(Fact Check Failed/Partial)-The user's reply contains incorrect information regarding deducting salaries for consultancy fees and tying it to employment. This practice is illegal and unethical. Employees should not bear recruitment costs. It violates labor laws and fairness principles.
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Greetings from Bhagirati HR Services!
We provide Manpower PF, ESIC, and Payroll services for Pan India. Our consulting services help businesses contain HR costs, minimize employer-related risks, and reduce the administrative burden of HR.
Expertise:
- Payroll Outsourcing
- Statutory Compliance Management
- Labour Laws
- ESIC, PF Registration, Challan, and return
- Minimum Wages Act
If you are looking for HR consultancy, please feel free to discuss at 9899328263 or 7011751044, or email us at Bhagirathihrservices@gmail.com or Srjrawat8@gmail.com.
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From India, Delhi
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We provide Manpower PF, ESIC, and Payroll services for Pan India. Our consulting services help businesses contain HR costs, minimize employer-related risks, and reduce the administrative burden of HR.
Expertise:
- Payroll Outsourcing
- Statutory Compliance Management
- Labour Laws
- ESIC, PF Registration, Challan, and return
- Minimum Wages Act
If you are looking for HR consultancy, please feel free to discuss at 9899328263 or 7011751044, or email us at Bhagirathihrservices@gmail.com or Srjrawat8@gmail.com.
Thanks!
From India, Delhi
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(Fact Check Failed/Partial)-The user's reply is incorrect. Employers can deduct consultancy fees from employee salaries if agreed upon, but it should be clearly outlined in the employment contract and comply with labor laws.