• HR consultant sourcing for overseas companies

Dear Experts, 

Hi, an HR consultant only provides candidate profiles to/for an overseas company, either directly or indirectly, using a job portal access he has, for fees. 

He is not interviewing/doesn't have the overseas hirer company details/ doesn't talk to candidates etc, for or on behalf of the overseas company. 

Will he need a license for this from HRD Govt of India and pay the prescribed fee and secure a Bank Guarantee for 50lacs for the license?

Regards
Asked 8 years ago in Labour

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13 Answers

How do you collect the fees? ( foreign currency or INR), locally or remitted to your a/c from overseas?

Rajaganapathy Ganesan
Advocate, Chennai
2300 Answers
8 Consultations

The Emigration Act, 1983 (Section 10) requires that those who wish to recruit Indian citizens for employment abroad shall register themselves with the registering authority i.e., the Protector General of Emigrants (PGE).

The fee prescribed (Rule 7) for registration is Rs. 25,000/-. Initially, the Registration Certificate (RC) is valid for a period of five years.

The form for applying for registration as recruiting agent is available online at.www.emigrate.gov.in/

The applicant is required to deposit Bank Guarantee of Rs.50 Lakhs.

To improve and streamline the procedure for processing of fresh applications for registration as recruiting agent under the Emigration Act, it has been decided that with effect from 1st April, 2007, the fresh applications for registration as recruiting agent will be submitted to the respective Protector of Emigrants as per their territorial jurisdictions, who will do the initial scrutiny to verify the completeness of the applications and forward the same to the Ministry along with all the documents including:

Your service is no exception to this though you are merely a facilitator. Under the present regulation the applying for such License becomes mandatory for you.

So act accordingly.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

If the HR consultant is not following the prescribed law in this regard, then he cannot be termed as a HR consultant, he can be labelled as a agent or broker.

It is the duty of the HR to provide the proper details of the company and the nature of job, salary, and all other facilities to the aspirant candidate and vice versa, i.e., to furnish the details and credentials of the candidates to the company desirous of employing such candidates.

It becomes the responsibility of the HR consultant/company to vet all the documents properly and certify the genuineness of both the side to both the people.

For carrying out this type of business, they have to adhere to law and rules in vogue and have comply with statutory procedures that are stipulated fore this purpose.

Do not get into trouble by flouting the laws.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

You are merely forwarding profiles not conducting any interviews nor selecting any candidates

You would not need licence from govt for said purpose

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

1) yes he has to open his business according HRD and per Indian laws

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

1. Under The Emigration Act, 1983 the registration is mandatory for anyone who wishes to recruit Indian citizens for employment outside India.

2. Since the limited role that you play is to provide the profiles of candidates from a large pool to prospective recruiters, but you do not recruit personally, you are not covered within The Emigration Act. Hence, no license is required.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

The Emigration Act, 1983 (Section 10) requires that those who wish to recruit Indian citizens for employment abroad shall register themselves with the registering authority i.e., the Protector General of Emigrants (PGE).

It is advisable you register your self with the registering authority

Maintain permanent records as required by emigration act

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

You are engaged in business of recruitment fir employer , you are sending list of short listed candidates

You are entering into correspondence with the applicants for their employment abroad

Better register your self under provisions of emigration act

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

(l) "recruiting agent" means a person engaged in India in the business of recruitment for an

employer and representing such employer with respect to any matter in relation to such

recruitment including dealings with persons so recruited or desiring to be so recruited;

(m) "recruitment" includes the issuing of any advertisement for the purpose of recruitment, the

offering by advertisement to secure or assist in securing any employment in any country or

place outside India and the entering into any correspondence, negotiation, agreement or

arrangement with any individual for or in relation to the employment of such individual in

any country or place outside India;

As per the above definitions, advisable that you better get the agency registered and obtain necessary permits to avoid future litigation.

Rajaganapathy Ganesan
Advocate, Chennai
2300 Answers
8 Consultations

The Emigration Act, 1983 (Section 10) requires that those who wish to recruit Indian citizens for employment abroad shall register themselves with the registering authority i.e., the Protector General of Emigrants (PGE).

The fee prescribed (Rule 7) for registration is Rs. 25,000/-. Initially, the Registration Certificate (RC) is valid for a period of five years.

The form for applying for registration as recruiting agent is available online at.www.emigrate.gov.in/

The applicant is required to deposit Bank Guarantee of Rs.50 Lakhs.

If you are falling under the above category, you will be required to comply with the above requirement.

The holder of the certificate for Recruiting agency shall maintain:

besides other conditions,

Internet facility, email accounts and a web portal containing detailed information about the recruiting agent, the validity status of the registration certificate, the services offered , the cost of services, the mode of payment of service charges, the remedies available to emigrants for redressal of grievances, vacancies available along with the details of the jobs, the employers and the contract conditions as well as the recruitments made in the past with such particulars as the registering authority may specify by order in writing.

Adequate and duly trained staff.

Arrangements for skill testing for the trades for which he recruits the intending emigrants.

The charges which the recruiting agent may recover from an emigrant in respect of services rendered, shall not exceed. Equivalent to wages for 45 days as per the employment contract subject to maximum Rs.20,000/-

You may make sure that these are followed.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

The provisions of section 16 of the act referred by you is very clear that the recruitment of employees in India for an employment outside the country shall be through a recruiting agent competent under this Act to make such recruitment. Therefore the competent person is the one as described in section 10 of the act, i.e., The Emigration Act, 1983 (Section 10) requires that those who wish to recruit Indian citizens for employment abroad shall register themselves with the registering authority i.e., the Protector General of Emigrants (PGE).

The Recruiting agency shall have to comply with the requirements as prescribed to become eligible for recruitment as per rules envisaged therein.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

As per Section 10 in The Emigration Act, 1983 , No person can function as recruiting agent without a valid certificate.—Save as otherwise provided in this Act, no recruiting agent shall, after the commencement of this Act, commence or carry on the business of recruitment except under and in accordance with a certificate issued in that behalf by the registering authority: Provided that a person carrying on the business of recruiting agent immediately before the commencement of this Act may continue to carry on such business without such a certificate for a period of one month from such commencement.

The fee prescribed (Rule 7) for registration is Rs. 25,000/-. for registration purposes and this Registration Certificate is valid for a period of five years.

You can get the Application for or can apply online from the website: www.emigrate.gov.in/

The applicant is required to deposit Bank Guarantee of Rs.50 Lakhs.

It is the duty of the HR to provide the proper details of the company and the nature of job, salary, and all other facilities to the aspirant candidate and vice versa.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

If you go through the aforesaid guidelines then it is very clear that your HR firm needs approval from the appropriate authority for the same.

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

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