The Global Crackdown on Illegal Recruitment Fees: What Employers Must Know

This guide is for employers, HR leads and manpower buyers who hire overseas workers in large numbers. You will learn what has changed, what counts as a recruitment fee, where the law already forbids workers paying, why fees still appear when you think you pay for everything, and a step-by-step checklist with the questions to ask your agencies.

What has changed

Workers paying for their own jobs is now being questioned in public, on both sides of the hiring corridor.

In late October 2026, Bangladesh's State Minister for Expatriates' Welfare said the Saudi Ambassador had asked why Bangladeshi workers pay recruitment costs when employers in Saudi Arabia already pay all expenses, including airfare.¹ Recruiting agency representatives at the meeting protested, and the minister himself accepted that workers may sometimes pay for visas to compete with workers from other countries.¹ The message for employers is simple: even when you pay, someone in the chain may be charging the worker again.

In a ruling reported the same month, New Zealand's Employment Court said that charging migrant workers a fee for a job in New Zealand is unlawful even when the money is paid outside the country.² The ruling also covers payments made through family members, friends or recruitment agents acting for the employer, and Immigration New Zealand warned employers and their intermediaries to make sure their offshore practices follow New Zealand standards.²

These cases are not new ideas. They apply standards that have existed for years. The International Labour Organization (ILO) guidance on fair recruitment says workers should not be charged, directly or indirectly, in whole or in part, any fees or related costs for their recruitment.³ The Employer Pays Principle, promoted by the Institute for Human Rights and Business (IHRB), is a commitment by the employer to pay the full cost of recruitment, and it reflects Principle 1 of the Dhaka Principles: no worker should pay for a job.⁴

What counts as a recruitment fee

Many buyers think a "fee" means only the agency's placement charge. The definitions are much wider. The IHRB says these fees can cover the recruitment itself, travel, visa and administrative costs, and other unspecified service charges.⁴ The United States federal contracting rule on trafficking in persons gives one of the most detailed lists. It defines recruitment fees as fees of any type linked to the recruiting process, no matter when, how or where they are charged or collected.⁵ Its list includes:

• finding, interviewing, selecting, training, orientation and skills testing of workers;
• advertising, labour certification, and processing applications and petitions;
• visas, photographs, passports and other identity or immigration documents;
• required medical examinations and immunizations, and background, reference and security checks;
• the fees of an employer's recruiters, agents or lawyers, and notary or legal fees;
• interpretation, translation and travel arrangements;
• government-mandated fees such as border crossing fees, levies or worker welfare funds;
• airfare and other transport from the home country to the worksite, and back at the end of the job;
• security deposits, bonds, insurance and equipment charges.

The same rule says a payment is still a recruitment fee if it is deducted from wages, paid back through lower pay or benefits, paid as a kickback or free labour, or collected by an agent, labour broker, staffing firm or subcontractor at any tier.⁵ In plain words: if a worker pays anything to get the job, in any form, to anyone, it counts.

Where the law already says the worker must not pay

In several places this is already the law, not just good practice.

• United Arab Emirates. Article 6 of Federal Decree-Law No. 33 of 2021 says an employer shall not charge the worker, or collect from the worker, recruitment and employment costs, either directly or indirectly. The same article requires a work permit from the Ministry of Human Resources and Emiratisation (MOHRE) and bans recruiting, or acting as a middleman in recruitment, without a licence from the ministry.⁶
• New Zealand. The Employment Court decision applies the Wages Protection Act 1983 to fees paid overseas and through third parties.²
• United States federal contracts. Contractors, their employees and their agents must not charge employees or potential employees recruitment fees, and some contracts require a compliance plan that includes a recruitment and wage plan banning these fees.⁵

If you hire for more than one country, check the rules in each destination country and in each country where you recruit.

Why fees appear even when you pay

Most employers who find worker-paid fees in their supply chain did not plan them. The cause is often the price. The IHRB explains that intense competition between agencies pushes the price of recruitment down until the only way for an agency to make a profit is to charge workers.⁷ It also notes that, at company level, hiring managers can be in a position to ask agencies for bribes or favours.⁷

So a very low quote or a "free" recruitment offer is a warning sign, not a saving. If you are not paying for the work, the worker probably is.

Why it matters for your business

Recruitment fees are not a small paperwork issue. The IHRB says these fees can leave workers poor and sometimes in forced labour.⁷ The ILO estimates that 27.6 million men, women and children are in forced labour worldwide, in every country and every economic sector.⁸ A worker in debt for a job may be afraid to complain about unsafe conditions. For you, that means legal risk, lost customers who audit their suppliers, and higher turnover.

A practical checklist for employers

1. Before you sign with an agency

1. Write a clear "no fees to workers" rule into your contract, using a wide definition like the lists above.
2. Ask every agency, in writing, for an itemised price that shows each cost you will pay: medical tests, visas, travel, training, documents and the agency's own service fee.
3. Ask which sub-agents or brokers they use in the sending country, and require the same rule for each of them.
4. Compare quotes. If one is far below the others, ask exactly how the agency covers its costs.
5. Check whether the agency is listed on the IHRB Responsible Recruitment Register or certified under the IOM IRIS scheme.⁷

2. Questions to ask your agency

• Who pays for the medical test, visa, flight and any pre-departure training?
• Does any worker pay a deposit, bond or "processing" charge to anyone?
• How do you tell workers that the job is free, and in which language?
• Can we interview workers privately, without your staff present?
• What happens if we find that a worker paid?

3. When workers arrive

1. Speak with a sample of new workers in their own language, away from agency staff. Ask what they paid, to whom, and whether they borrowed money.
2. Check the first payslips for deductions you did not approve.
3. Give workers a safe way to report fees after arrival, not only on day one.

4. If you find fees

1. Do not punish the worker. They are the victim.
2. Pay the worker back, then recover the money from the agency under your contract. Under the US federal rule, remedial action that may include reparation to victims is one of the factors officials can take into account.⁵
3. Agree a written correction plan with the agency, or end the relationship if it will not change.
4. Keep records you can show to customers or authorities.

Plan the budget honestly

Paying the full cost of recruitment costs more than accepting the cheapest quote. Plan for it from the start. The IHRB also warns that agencies moving away from worker-paid models may need time and support to change, so set clear dates and check progress rather than expecting overnight change.⁷ A fully itemised price is usually cheaper than a legal case or a lost customer.

Frequently asked questions

Is it legal to let workers pay for their own visa or medical test?

Under international fair recruitment guidance, these are recruitment costs that the employer should pay. In some countries it is also against the law to pass them to the worker. The safest approach is to pay them yourself and say so in writing.

What if the fee was paid to an agent in the worker's home country?

It still counts. Fees paid abroad, through sub-agents or through family members can still create legal risk for the employer. Your contract should cover every agent in the chain.

How can I tell if workers have paid fees?

Ask them directly and privately, in their own language, soon after arrival. Check payslips for unexplained deductions. Very low agency prices are also a warning sign.

What should I do if I discover that workers paid?

Repay the workers first and do not punish them. Then recover the money from the agency and agree a plan to stop it happening again. Keep records of every step.