Who Pays Recruitment Fees? Agent Commission and the Employer-Pays Model Explained 2026

The employer-pays model is simple: the employer pays the recruitment agency for finding workers, and the worker pays nothing for the placement. This is the standard recommended by the International Labour Organization, and it is the law in many countries. When a worker is charged a fee for a job, the fee is usually illegal, and it is one of the main ways workers fall into debt before they even start work.

Recruitment fees are a major problem in overseas hiring. Workers are charged thousands of dollars for jobs that should be free to them, and the debt forces them to accept bad conditions because they cannot afford to leave. If an agent asks you to pay for a placement, a visa, or a job offer, stop and check the law — in most cases you should not be paying, and the employer should be.

The employer-pays model works like this: a hospital, hotel, or company needs workers, so it hires a recruitment agency and pays the agency a fee for each worker hired. The agency's client is the employer, not the worker. The worker applies, is interviewed, and if selected, receives a job offer and a visa — without paying the agency for the placement.

This model exists because charging workers creates debt bondage. A worker who borrows money to pay a recruitment fee starts their job in debt, and the debt makes it hard to leave a bad employer or report abuse. The International Labour Organization's fair recruitment principles state clearly that workers should not pay recruitment fees or related costs, and a growing number of countries have written this into law.

The model is not just an ethical ideal — it is also good business for employers. Employers who pay for recruitment get workers who arrive without debt, who are more likely to stay, and who are more productive. Employers who pass the cost to workers get higher turnover and more complaints, and in some countries they face penalties for using agencies that charge workers.

Some costs are legitimately the worker's, and some are not, and the line between them matters. Costs the employer should pay include: • the recruitment agency's placement fee • the visa and work permit fees • the cost of the employer's own document checks. Costs the worker may pay include: • their own passport • a medical test, in some countries • their own travel documents. Costs that should always be questioned include: • a placement fee charged to the worker • a fee for a job offer or an interview • a security deposit for a job • a fee to process a visa that the employer should be paying.

The rules differ by country. The Philippines, for example, bans placement fees for most overseas workers and caps the fees agencies can charge. India regulates recruitment agencies through the Protector of Emigrants and sets limits on what they can charge. The UK, the EU, and the Gulf states have their own rules, and in many cases the employer is required by law to pay the recruitment costs. Before you pay anything, check the law in your home country and in the destination country — a fee that is legal in one place may be illegal in another.

Always get a written breakdown of every fee, with a receipt for every payment. If an agent cannot or will not give you a written breakdown, do not pay. A legitimate agency has nothing to hide, and a written record protects you if you later need to complain or claim a refund.

Agent commission is the fee an employer pays to a recruitment agency, and it is usually a percentage of the worker's first-year salary or a flat fee per hire. For a nurse, the commission might be one to two months' salary; for a waiter or a cleaner, it might be a smaller flat fee. The exact amount is a commercial agreement between the employer and the agency, and the worker should never see it as a charge on their own payslip.

Problems arise when the agency charges both sides: the employer pays the commission, and the worker is also charged a fee. This is double charging, and it is one of the most common abuses in overseas recruitment. If an agency tells you the employer pays a fee and also asks you to pay, ask for a written explanation of what your payment is for, and check it against the law.

Some agencies disguise worker fees as something else: a training fee, a documentation fee, a processing fee, or a service charge. The name does not matter — what matters is whether you are being charged for a service that should be free to you. If the fee is for the placement itself, or for a document the employer should provide, it is not a legitimate charge.

First, ask for everything in writing before you pay anything: the job, the salary, the employer, and every fee, with receipts. Second, check the agency's licence with your government's labour department. A licensed agency has a registration number you can verify, and an unlicensed agency is a warning sign on its own. Third, never pay in cash without a receipt, and never pay to a personal bank account — legitimate agencies take payment to a company account and give you a receipt.

Fourth, talk to other workers who have used the same agency. If you can, find someone who went through the process and ask what they paid and whether they were happy with the service. Fifth, keep every document: your contract, your receipts, your messages with the agent, and your visa paperwork. If something goes wrong, these documents are your evidence.

If you believe you have been charged illegally, file a complaint with the labour department in your country, and report the agency to the destination country's labour authority as well. You can also contact your embassy, which can advise you and, in serious cases, help you recover your money. Do not be afraid to complain — the law is on your side, and agencies that charge workers illegally rely on workers staying silent.

The employer-pays model is slowly becoming the global standard, driven by new laws and by pressure from workers, unions, and ethical employers. The UK, the EU, and several Gulf states have tightened their rules on recruitment fees in recent years, and more countries are following. Large employers, especially in healthcare and hospitality, increasingly require their recruitment partners to certify that they do not charge workers.

For workers, the practical advice is to choose employers and agencies that follow the employer-pays model, and to walk away from any recruiter who asks you to pay for a placement. A legitimate job should not cost you money to get. If an agent tells you that paying a fee is normal, or that everyone pays, ask them to show you the law that allows it — in most cases, they cannot, because the law says the opposite.

The more workers refuse to pay illegal fees, the harder it becomes for bad agencies to operate. Every worker who walks away from an illegal fee makes the market a little fairer for the next person.

SteadStaff follows the employer-pays model: workers never pay for a job placement, and no fee is charged to candidates for recruitment. The process begins with a review of your resume and experience, followed by employer matching and interview preparation.

There are no guaranteed placements and no job is promised before an employer interview. What you get is a structured, transparent route: real employers who pay the recruitment costs, real interviews, and guidance on the documents and visa process. If any recruiter asks you to pay for a placement, compare their process against this standard — and if you want a verified route, start your application with SteadStaff.