Recruitment company misled job seekers about training and jobs

Australian Regional Employment Agencies Pty Ltd and its national recruitment manager, Mr Shreyas Narayana, have admitted misleading job seekers over paid IT training courses run by Zanok Technologies Pty Ltd after Australian Competition and Consumer Commission intervention.

Around December 2008, AREA entered into an agreement with Zanok, an IT company, to recruit IT graduates for a paid training course run by Zanok.

From January to April 2009, AREA, through Mr Narayana and other employees of AREA, placed advertisements and interviewed applicants targeting non-residents and international students. A significant number of applicants were temporary residents from India seeking employment in the IT industry.

AREA and Mr Narayana admitted making certain misleading representations in advertisements and interviews including that:

• there were positions in the IT industry on offer when in fact the offer was for paid training costing up to $4,700
• there was a guarantee of employment at the end of training, when the workplace training agreement between Zanok and the trainee negated any such guarantee in circumstances including 'Global Economic Crisis' and in any case Zanok could not guarantee jobs for all graduates, and
• Zanok would pay trainees a specified minimum salary level after completing training, when it was not in a position to guarantee to pay the specified minimum salary.

AREA and Mr Narayana have admitted contravening the Trade Practices Act 1974 and have provided the ACCC with a court enforceable undertaking that AREA will:

• not engage in conduct that is likely to mislead persons seeking employment as to the availability, nature, or terms or conditions, of that employment
• ensure that all advertisements placed by AREA are worded so that they do not mislead persons seeking employment and are reviewed by the General Manager of AREA prior to being placed
• ensure that all representations made to persons seeking employment are accurate in describing the nature and conditions of the employment offered, and
• implement a trade practices compliance program.

In addition, the ACCC instituted proceedings in the Federal Court against Zanok and its directors in May 2009 alleging unconscionable and misleading conduct, and obtained interlocutory injunctions in relation to the conduct on May 13 2009. Those proceedings are ongoing and listed for directions on August 20 2009 at 10.30am.