EMPLOYMENT SCAMS ARE A COSTLY TRAP FOR JOB HUNTERS
The Ministry of Government Services cautions job hunters not to hand over their hard-earned cash to anyone who wants money in exchange for promises of employment. Be cautious if you are asked to:
- pay for specialized job training in exchange for ‘guaranteed’ employment.
- pay an upfront fee to a job placement company to obtain a dream job.
- pay an upfront investment fee for a not-to-be-missed business opportunity.
Beware: Job Training -- Job Guaranteed
Look out for ads promoting job training that claim to guarantee employment and high starting salaries with the same company that offers the training. Often this ‘training’ does not lead to employment and legitimate employers may not recognize the certification.
From the ministry’s case files: An individual responded to a newspaper ad for "50 security officers, immediate openings". When told during the interview that in order to get a position he must take a two-day course to qualify as a security officer, the complainant paid the $214 fee and signed a registration form. The next day, the complainant tried to cancel his registration and get his money back. The company wouldn’t refund his money and refused to provide a copy of the contract.
Beware: Phoney employment agency
Phoney employment agencies contact people who may have posted their resumes online or with a job-search engine. Job hunters are invited to interviews and promised employment with substantial annual salaries. They are then pressured to sign a contract and asked to pay an administration fee for the job placement service. The victims might never hear from the company again, or they will be given a list of referral companies that have never heard of the phony agency and have no work to offer. Complaints will be dismissed with a referral to ‘the fine print’ in their contract, which says employment is not guaranteed.
From the ministry’s case files: An employment agency offered to arrange interviews with prospective employers but candidates had to pay an upfront retainer fee. Individuals were told that the retainer would be refunded when the individual was hired, with the money paid by employers in exchange for the recruitment services. The complainant said that she did not receive any referrals and the company refused a refund.
Beware: Bogus Business Opportunities
Companies that advertise specialized business opportunities such as office cleaning will promise clients contracts in exchange for an ‘investment’ fee of several thousand dollars. The paperwork suggests that the individual is a ‘partner’ or ‘sub-contractor’ and they may even be encouraged to register their own business as a separate entity from the company. The company guarantees a certain number of clients within a specific timeframe or the investment fee will be refunded. The company ultimately fails to refer the promised number of clients and fails to deliver the refund.
From the ministry’s case files: An individual paid $1,200 to be a sub-contractor for a cleaning company. The client was promised a certain number of cleaning contracts and she could act as a sub-contractor for them. She was provided in writing with a refund guarantee should the promised cleaning contracts failed to materialize, but the company never reimbursed her. The Ministry determined that the consumer protection legislation did not apply to her situation and suggested that she take the matter to Small Claims Court.
Avoid the Traps
Beware of:
- Requests for payment upfront.
- Claims of high wages for jobs with minimum education requirements and “no experience necessary.
- Guaranteed job placements that sound to good to be true.
- Heavy pressure to sign right away and threats that the offer will be “gone tomorrow.”
- Spoken promises that are not included in the written contract.
Ask Questions:
- What service do you offer?
- Do you place clients?
- How much does the service cost?
- Who pays for the service (the prospective employer as a recruitment fee, or the prospective employee)?
Protect yourself:
- Be suspicious of any employment agency that promises or guarantees you a job.
- Walk away from anyone who won’t give you clear, straight answers.
- Follow-up with the head office of the company listed in an ad by an employment agency to find out if that company is actually hiring.
- Never pay money in advance for a job opportunity.
- Refuse to sign any contract until you have read it, fully understand it and get a copy of it.
- Get all promises in writing.
- In the case of a business opportunity, get a lawyer, accountant or business adviser to read the disclosure document and give you their advice.
- Protect your personal information. Don’t give your banking information, credit card number or SIN to an agency.
- Use free job-find services that are available from government and other agencies, the Internet, libraries, -- and talk to family and friends and let them know you are looking for work.
Consumer protection legislation may apply in certain situations. For more information, contact the Ministry’s Consumer Services Bureau at 1-800-889-9768 or (416) 326-8800 or www.mgs.gov.on.ca.
If the business opportunity is operated wholly or in part in Ontario, the Ministry’s franchise legislation may apply. For a copy of the Arthur Wishart (Franchise Disclosure) 2000 Act, go to www-e-laws.gov.on.ca.
In cases where the job hunter was hired as an “employee” of the company, the Ministry of Labour’s employment standards legislation may apply. For more information regarding employment standards legislation, visit the Ministry of Labour website at www.labour.gov.on.ca/english/es/
