No Fees to Other Persons - Act Part 2, Section 11

Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information

Summary

This section prohibits an employment agency or a farm labour contractor from paying a third party to either find or to help find employment for someone.

Text of Legislation

11. (1) An employment agency must not make a payment, directly or indirectly, to a person for obtaining or assisting in obtaining employment for someone else.

(2) A farm labour contractor must not make a payment, directly or indirectly, to a person for whom the farm labour contractor's employees work.

(3) A person does not contravene this section by paying for any form of advertisement placed by that person.

Policy Interpretation

See s.1 of the Act for the meaning of “employment agency” and “farm labour contractor”.

Subsection (1)

An employment agency is not permitted to pay anyone for finding or helping to find employment for someone seeking employment.

Example

The Human Resources Manager of a large firm approaches an employment agency for assistance in hiring several more senior executives needed because of a company expansion. The employment agency offers to pay the Human Resources Manager a fee to ensure the exclusive use of its services.

This is a contravention of s.11(1).

Subsection (2)

A farm labour contractor cannot make a payment to a producer or a farmer or anyone else for whom the employees of the farm labour contractor work.

Subsection (3)

It is permissible for employers, employment agencies, farm labour contractors or persons seeking employment to place advertisements and pay for them. This applies to any type of advertising and may include newspapers, bulletin boards, or internet websites or any other form of advertising. An employment agency cannot require a person seeking employment to "advertise" their availability through the agency and pay the agency for the "advertisement".