The Ministry of Labour & Employment has released the Private Placement Agency (Regulation) Bill, 2025 for public consultation, per a corporate compliance digest around mid-August but still very active in feedback phase. The bill seeks to regulate both domestic and overseas placement agencies—requiring registration, transparency of recruitment fees, accountability for job offers, and penalties for misleading promises. Key stakeholders (unions, placement firms, legal experts) are evaluating its clauses around licensing and oversight.
Sources: @MonDAQ Compliance Digest, @IndiaAdvocacy summaries. ([turn0search14])
Job seekers—especially those from smaller towns—often fall prey to agencies that promise foreign placements or high pay, only to leave them stranded. The draft bill offers hope: clearer recourse, less risk. For HR professionals, this is both a partner and a challenge: more due diligence required in hiring via agencies; more reputational upside if your agency partners are clean. The emotional effect could be restoring faith in placement pathways, especially for vulnerable youth.
If passed, the bill will amend the legal baseline for recruitment agencies via the Placement Agency Regulation Bill (once enacted). HR must adapt by vetting agencies for registration status, including clear fee disclosures, ensuring contracts are transparent, and avoiding gross misrepresentations. Violations could attract penalties and possibly criminal liabilities under new licensing clauses. As with overseas recruitment regulation under the Emigration Act, proper documentation and licensing will matter more. Firms that pre-align with expected norms will get ahead. Also, globally, many countries require recruitment agencies to be licensed and regulated (e.g., US, UK). India would be joining that trend.
What disclosure should you always ask from a placement agency?
Should employers only use licensed placement partners—and why?
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5Sources: @MonDAQ Compliance Digest, @IndiaAdvocacy summaries. ([turn0search14])
Job seekers—especially those from smaller towns—often fall prey to agencies that promise foreign placements or high pay, only to leave them stranded. The draft bill offers hope: clearer recourse, less risk. For HR professionals, this is both a partner and a challenge: more due diligence required in hiring via agencies; more reputational upside if your agency partners are clean. The emotional effect could be restoring faith in placement pathways, especially for vulnerable youth.
If passed, the bill will amend the legal baseline for recruitment agencies via the Placement Agency Regulation Bill (once enacted). HR must adapt by vetting agencies for registration status, including clear fee disclosures, ensuring contracts are transparent, and avoiding gross misrepresentations. Violations could attract penalties and possibly criminal liabilities under new licensing clauses. As with overseas recruitment regulation under the Emigration Act, proper documentation and licensing will matter more. Firms that pre-align with expected norms will get ahead. Also, globally, many countries require recruitment agencies to be licensed and regulated (e.g., US, UK). India would be joining that trend.
What disclosure should you always ask from a placement agency?
Should employers only use licensed placement partners—and why?
Acknowledge(0)Amend(0)
When dealing with placement agencies, it's crucial to ask for full disclosure of their registration status. This includes their license number and the regulatory body that has issued it. You should also ask for a clear breakdown of their recruitment fees. This transparency will help you avoid any hidden costs and ensure that the agency is operating within the legal framework.
As for the second question, yes, employers should only use licensed placement partners. There are several reasons for this:
1. Compliance with the law: Once the Placement Agency Regulation Bill is enacted, using an unlicensed agency could lead to legal consequences.
2. Protection against fraud: Licensed agencies are regulated and monitored, reducing the risk of fraudulent practices.
3. Quality of service: Licensed agencies are more likely to adhere to professional standards and ethical practices, ensuring a better quality of service.
4. Reputation: Partnering with licensed agencies can enhance your company's reputation by demonstrating a commitment to ethical hiring practices.
Remember, due diligence in vetting placement agencies is not just about compliance, but also about protecting your company and the job seekers you aim to hire.
From India, Gurugram
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As for the second question, yes, employers should only use licensed placement partners. There are several reasons for this:
1. Compliance with the law: Once the Placement Agency Regulation Bill is enacted, using an unlicensed agency could lead to legal consequences.
2. Protection against fraud: Licensed agencies are regulated and monitored, reducing the risk of fraudulent practices.
3. Quality of service: Licensed agencies are more likely to adhere to professional standards and ethical practices, ensuring a better quality of service.
4. Reputation: Partnering with licensed agencies can enhance your company's reputation by demonstrating a commitment to ethical hiring practices.
Remember, due diligence in vetting placement agencies is not just about compliance, but also about protecting your company and the job seekers you aim to hire.
From India, Gurugram
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INFOSYS placement papers.zip
Coimbatore_Work Placement.pps_s how.pps