Can Recruitment Agencies Charge Candidates? What to Expect in Different Markets

When navigating the job market, one of the key concerns candidates often have is whether recruitment agencies can charge them for their services. This question is particularly important when considering different regions, as legalities and practices vary globally.

So let’s break down what you can expect in different markets like Europe and China.

What are recruitment agencies?

Recruitment agencies are external partners that work on behalf of an organization to help fill open positions with qualified candidates, including sourcing and vetting individuals and presenting top talent to hiring managers. For example, a software company may enlist the support of an executive search firm, which is a specialized recruitment agency focused on leadership positions, to help recruit a qualified chief technology officer. 

Can recruitment agencies charge candidates?

In Europe, recruitment agencies typically cannot charge candidates for securing employment. This is regulated by laws such as the UK Employment Agencies Act, which forbids agencies from charging job seekers, except for optional services like CV writing or career counseling. This standard applies across many European countries, as it prevents exploitation and ensures transparency between agencies and employers​.

In China, practices can be more flexible. While large cities and international markets follow guidelines similar to Europe, other regions might allow or expect candidates to pay for certain services. These might include placement fees or administrative costs, especially when dealing with smaller, local agencies. The legal framework is less stringent, so candidates should be cautious and ensure they fully understand what services they are paying for​.

Read here: What are the Biggest Online Recruitment Platform in China?

Are there any exceptions?

In most EU countries, there are few exceptions to this rule. Even temporary staffing agencies must follow the directive. However, some agencies offer extra services like CV writing or interview coaching for a fee. It's important to note that these are optional and separate from the recruitment process itself.

What should candidates expect instead?

In Europe, it's the employer who pays the recruitment agency for their services. Typically, employers cover the agency’s fee, which is either a percentage of the candidate’s first-year salary or a fixed rate. Candidates can focus on preparing for the recruitment process without worrying about any hidden fees.

What types of fees are candidates expected to pay?

In China, fee structures can vary. For most local jobs, agencies charge employers similar to the European model. However, for specialized roles or overseas placements, agencies may charge candidates a service fee. This fee usually covers administrative costs, visa processing, or training related to the job.

Are there any restrictions on these fees?

While agencies in China may charge candidates, the government ensures fees remain reasonable and transparent. The Ministry of Human Resources and Social Security has set guidelines to prevent the exploitation of job seekers. It's essential that candidates ask for a detailed breakdown of any fees before making a

commitment.

How can candidates protect themselves from unfair fees?

In both Europe and China, it's critical to research agencies before signing contracts or paying fees. Here are some tips:

• In Europe: Always ask upfront if there are any fees. Reputable agencies will clarify that their services are free for job seekers, as the employer is the one paying.

  
  

• In China: For specialized or international roles, inquire about the fee structure in detail. Ensure that any fees charged comply with legal guidelines. Review the agency's credentials and check online reviews to avoid falling victim to scams.

  
  
  
  

  

  
  
  
  

What should employers know about recruitment agency fees?

Employers generally bear the responsibility for recruitment agency fees in both Europe and China. It’s important to understand the agency’s pricing model, whether it’s a fixed rate, a percentage of the candidate’s salary, or a performance-based fee.

In Europe, employers may pay higher fees, as agencies cannot charge candidates. These fees reflect the comprehensive services offered, from sourcing talent to managing the hiring process.

In China, while employers typically cover most fees for local hiring, they may share costs with the candidate for specialized roles, particularly when recruiting internationally. Clear communication with the agency about fee arrangements is crucial to avoid misunderstandings.

Read here: A Guide to Find the Right Recruiting Agency for Your Needs

Looking for a trusted recruitment partner?

At ThinkLabs Recruitment, we specialize in bridging the gap between European and Chinese markets, offering transparent and compliant recruitment solutions. Whether you're a company seeking top talent or a candidate looking for your next opportunity, we’re here to guide you every step of the way.

Contact us today to learn how we can support your recruitment needs in both Europe and China!