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Deepak Chauhan (CA Final Student)     30 October 2010

Received money for providing job

A private limited is planning to have 100 employees all over India, for this purpose they want to sell form and charge Rs.50 from applicants which will be non-refundable irrespective of the fact that whether the applicant get the job or not, i want to confirm that for jobs more than 100 people will apply and they will give job only to 100 candidates and all the money as application fees is non-refundable, whether the company can receive this type of money, is it legal, does it make any difference if instead of private limited company partnership firm do this does any law prohibit this or is it legal? Kindly reply 



Learning

 5 Replies

adv. rajeev ( rajoo ) (practicing advocate)     30 October 2010

Good question.  Waiting for the experts advise.

Isaac Gabriel (Advocate)     30 October 2010

Almost all the recruiting agencies, be it private, govenment or quasi Government, collect a sizable amount as appliction fees eventhough the number of vacancies are in hundreds or thousands. There is no restriction for such advertisements. The cruiting agencies may be asked to make use of the Employment Exchanges where the job seekers have have expressed their willingness for the job and waiting in que. 

chandrasekkar c k (advocate)     31 October 2010

The companies are not prohibited under any law to do so. Thanks to unemployed persons awaiting employment ,the private companies are also following PSU pattern. When Civil Service examination, bank examination etc., are for cost, I do not think it will be wrong. But the company should justify that they conduct a selection by a standard process. if that is done even if dragged to litgation the charging cannot be faulted. They will claim right under Article 19(1) (g) of the constitution, subject to reasonable restrictions.

radha krishna (vp-hr)     01 November 2010

There is no regulation which prohibits collection of fee along with job application form.

But if the collection is to cheat the applicants i.e, after collecting if they don't call for interviews/no vacancies at all/no communication/closing of shop after collection- then we initiate action.

Normally Firms collect application fee if they are conducting a written exam or go for a more  screening  tests/expect more competitiors (to restrict applications) etc.,

manish (advisor)     08 November 2010

I had a fight with my colleague in the office stairs.. though there is no eyewitness...now they are asking us to resugn with immediate effect. should i resign or take the termination letter from them..


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