about 2 months ago - Nadhirah Afiqah

Steering Clear: The Risks of Joining Non-Compliant HR Recruitment

Image 2024 04 03 T02 49 07

Steering Clear: The Risks of Joining Non-Compliant HR Recruitment​

In 2022, LinkedIn eliminated over 178 million phony accounts to reduce the recruiting schemes the company encounters. LinkedIn has 810 million members, so it is a large, trusting audience for scammers. However, con artists are becoming more cunning and skilled at ensnaring job seekers on their webs.To provide candidates with the necessary resources to safely and successfully pursue their career, we've put up a list of warning signs that applicants should watch out for when perusing job postings and engaging in the hiring process. Scammers, not today!

Red Flags: Recognizing Warning Signs of Non-compliance HR


Employees may face exploitation in terms of unfair wages, excessive working hours, or poor working conditions. Some Malaysians accepted what appeared to be alluring work offers in Thailand and Cambodia, only to discover later that the offers were fraudulent and that they were being held captive. A woman who wants to go by Elyn was tricked into believing she had secured a lucrative position in a communications company in Cambodia, but she was made to work for a scam syndicate.

Legal Issues:

Employment contracts and practices may not adhere to labor laws, exposing individuals to legal risks and potential disputes. Failure to adhere to the provisions of the Employment Act (EA) is typically considered an offense. Upon conviction, it may result in a general penalty of up to RM 50,000 (approximately USD 10,000). Certain non-compliances may carry even higher penalties.

Uncertain Job Security:

Inappropriate hiring practices by HR recruitment may result in abrupt layoffs or short notice periods as they do not offer job security. These vendors may put their interests ahead of the welfare of their staff, leaving them open to an unanticipated layoff. Employees may have mental discomfort, unstable finances, and difficulties finding other work under such circumstances. Unethical HR practices may include arbitrary terminations for no apparent reason, flouting legal requirements for notice durations, or implementing unfair rules that unduly affect employment security.

Lack of Benefits:

Unethical HR providers pose a major danger to employees' well-being since they may deny them legally necessary perks that are crucial to their overall pleasure and financial stability. This might include failing to offer health insurance, keeping workers out of retirement schemes, or depriving them of other necessary benefits and allowances.

Career Development Challenges:

When HR providers do not commit to employee training and development, it can seriously hinder people's ability to advance in their careers within a business. Employees may be less likely to learn new skills and remain current with market trends if a firm does not engage in training initiatives. Good HR providers will provide you with continuous training and development to support individual career advancement as well as the organization's overall success and flexibility.

Ways to Be Cautious and Avoid Scams:

Research the Company

Conduct thorough research on the HR supplier and the hiring company. Look for reviews, testimonials, and any information about their reputation.

When it comes to applying for jobs, reputable job boards and company career portals are typically your best bet. However, this does not mean that scammers aren't focusing on job seekers on websites like Indeed and LinkedIn. What if your ideal job is posted on X or a Facebook group? Yes, it might be genuine, but it's advisable to make sure before taking any action.

Verify Legitimacy

Ensure that the HR supplier and the job offer are legitimate. Verify the company's registration, address, and contact details. Some Malaysians have fallen for “high-paying” jobs overseas that turned out to be scams. 

Read Contracts Carefully

Review employment contracts before signing. Pay attention to terms, conditions, and any clauses that seem vague or unfair.

Ask Questions:

Don't hesitate to ask questions about the job, company policies, benefits, and any concerns you may have during the interview process. Look at the behaviour of the interviewer, if he/she was unprofessional, gave an unclear job description, lack of clarity, or objectives of the company goals it might be a scam.

Check for Red Flags:

Be cautious if the hiring process seems rushed, if there are inconsistencies in the information provided, or if the company is reluctant to share essential details. If the employers are not willing to negotiate, whether it's about salary, benefits, or flexibility, you have to check if the company is legitimate. You can surf the internet to look for reviews on several well-known websites including Indeed and Glassdoor. Some evaluations may be based on inaccurate or out-of-date data. As a result, you should constantly verify the reliability and integrity of the evaluations and ratings by looking for their source.

Network and Seek References:

Connect with current or former employees of the company through professional networks. Their experiences can provide valuable insights. To increase the size of your professional network and level of knowledge, utilize the LinkedIn Search box to find individuals who share your interests, as well as Top Voices and role models.

Consult with Peers:

Seek advice from peers, mentors, or industry professionals who may have insights into the reputation of the HR supplier or the hiring company.

Be Wary of Upfront Fees:

Legitimate employers typically do not ask for upfront fees from employees. Be cautious if you are asked to pay for training or other services before starting the job. In certain circumstances, legitimate companies may have good justification to charge advance fees, even though some fraudulent or scammy enterprises do ask for upfront payments as part of their schemes.  If they asked for an upfront fee, make sure that you received clear details on the services you will receive in exchange for the upfront payment. A formal contract should contain all of this information.

Trust Your Instincts:

If something feels off or too good to be true, trust your gut. If a job offer or HR supplier seems suspicious, it is okay to walk away. Check with your friends, or search the internet regarding the HR supplier to ensure it's not a scam.

By being vigilant, doing due diligence, and staying informed, individuals can lessen the risk of falling into tricks of job scams. Additionally, government and employment agencies may provide resources and guidance to help individuals navigate the job market safely.