Dear Seniors & Colleagues,
These days many employers are deducting from employee's salary to pay consultancy. Although they are doing this with the consent of employees but still is that legal & if it's legal then what's the most safest way of practicing that method? Seeking your kind attention.
Warm Regards,

From India, Kolkata
Labour Law & Hr Consultant
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Manager - Human Resource
Scalper :-)
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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

Recruiting people is requirement of company & selecting the mode of recruitment is choice of company. If the consultant is been hired by company then why should employee (candidate) pay him charges..? except, if it is already discussed & approved by employee.
As said by Mr. Praveen kumar, yes its ethically is not correct even though its not legal too. its the authorized deduction if employees is not consent on the same.
We all should not accept this practice & raise voice against it...

From India, Mumbai
Dear Seniors,

Thanks a lot for your attention. Here in WB most of the companies does not pay anything to HR Consultants. And just because of the terrible Job Market of WB here competition among the Consultants are really high plus abandoned of educated youth who are literally dying to get a job. Under such circumstances employers has the right to say the last word.

Now, if the consultancy is decent enough then they would do an Agreement where candidates are bound to pay their first month's salary in 2/3 EMI's to consultants. Now, most of the time candidates try to dupe the consultancy by not paying them their dues.

Hence these days consultants are making some necessary changes in their Agreement & asking companies to deduct the salary from candidates & pay it to them. Many employers doing it the other way, they are asking the candidates to contact Consultants & bring a NOC & without it they are not issuing the Offer Letter. At the time of getting that NOC candidates are paying the money to the consultancy.

I think everything is legal if you know the flaws of law & most unethical part in life is starvation.

But here question is if everything is going on with the consent of candidates then is that legal?

Please try to understand the situation & give me an advice.

Warm Regards,


From India, Kolkata
Harsh Kumar Mehta

I think, payment to recruitment consultants out of first salary or subsequently in instalments is not allowed by the Payment of wages Act. I think, employer cannot arbitrarily deduct any amount from their salaries(wages) in the shape of payment to consultant.

From India, Noida

What sort of advice 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 affair 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 yourself all the spade work from screening of applications to short-listing of probable final candidates. When the consultant does all these including the creation and up-dating of his own data base of suitable candidates likely to be needed by industries in his area of operation, ascertaining their skill-levels and expertise at times 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 instalments apparantly 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 charges to maitain their names alive in your data base. Make it clear to the employers seeking your services that they alone will be charged a definite service charges per every selected candidate inclusive of the costs of all the processes preceding the submission of the list of final candidates.

From India, Salem

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 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 re 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 who charge from the candidates even at executive / managerial levels - and some of them have turned out to be scams - Ladders, for example.

From United States, New York
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 Staffs are always a "Real Huge Task". Hence we outsourced that tasks to Recruitment Consultancies so that we can concentrate in recruitment of Mid/Senior Level.

Candidates generally pay their 1 month salary to consultancies in 3 EMI. Once they pay the 1st month EMI we issue them the Offer Letter & after 3 months if they pay the full amount to consultancies then we provide an Appointment Letter to the employees. We maintain absolute transparency throughout the entire process. Most of the time who stays 3 months in the system then higher numbers out of them stays in the system. So, really it may sounds bizarre but believe me its an useful retention tool.It also solves the purpose of my employer & consultancies.

Thanks for the advice.

Warm Regards,


From India, Kolkata

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