Applying for a job turns into "investing in shares," becoming a regular employee turns into "paying out of pocket"

This article is adapted from: Strait Herald

Applying for a job turns into “buying in”; getting hired turns into “paying extra”

In the peak hiring season of “March third and April fourth,” watch out for employment scams that use high pay, buying in, and internal referrals as bait

Reporter Chen Jie, Zeng Yixuan; Correspondent: Hu Law/Report; Yang Xi/Cartoon

During the peak hiring season of “March third and April fourth,” many job seekers are eager to seize high-paying opportunities, but may fall into a trap of “going from working to paying extra.” Recently, the People’s Court of Huli District of Xiamen tried two civil disputes arising from job searching, reminding job seekers to stay sharp and be wary of employment scams that dangle high pay, buying in, and internal referrals.

Case One

They trusted that buying in would entitle them to dividends, and the job seeker became a “creditor”

At the end of April 2025, Mr. Lin, a resident, got to know Lei, the boss of an education consulting company in Xiamen, when applying for a job. Lei promised high pay and invited Lin to buy in for dividend participation, claiming the investment return rate would not be less than 24%, that Lin would not need to bear any losses, and that they could withdraw at any time.

After a few days of job entry assessment, Lin decided to put 60k yuan into purchasing 10% of the company’s equity: he and his wife pooled 54k yuan, and the remaining 6,000 yuan would be offset with his first month’s salary. The two parties signed a “Equity Transfer Agreement,” but the company did not handle equity change registration.

In July 2025, due to a delay in salary payments, Lin proposed withdrawing the equity. Although Lei agreed, he refused to refund the money, citing tight funds. After repeated demands proved fruitless, Lin sued the court.

After trial, the court issued a judgment in the first instance, holding that the parties had reached an agreement on equity transfer and salary being invested, and that Lin had the right to withdraw the equity. The court ordered Lei to return the 60k yuan principal and overdue interest; the 6,000 yuan salary used as an offset to the equity purchase was legally valid, and Lin may not claim it again.

Case Two

Internal referral didn’t work out—got scammed instead; a graduate was tricked out of tens of thousands

New graduate Xiao Gao got to know Dou through an acquaintance. Under Dou’s introduction, he entered the company for an internship. However, Dou was not an employee of that company.

After the internship ended in March 2025, Dou invited Xiao Gao to “buy in for dividends,” and promised to help with an internal referral for confirmation into a full-time position. To get hired smoothly, Xiao Gao transferred 10k yuan to Dou. No agreement was signed between them, and Xiao Gao also did not know which company the “buy-in” was for.

Afterwards, Dou recommended another job elsewhere, claiming that the original unit had no openings. Xiao Gao did not end up taking the role because doubts remained about the location and the content.

In July 2025, Xiao Gao found work on his own and demanded the return of 10k yuan. Although Dou agreed, he kept delaying. Xiao Gao had no choice but to sue.

After trial, the Huli Court held that relevant evidence proved that Xiao Gao’s 10k yuan transfer was the buy-in payment, and that Dou agreed to refund but delayed without reason. Therefore, the court, according to law, ruled that Dou must return the 10k yuan.

The judge analyzed that the “friend-of-a-friend internal referral” scheme based on internships can easily make graduates lower their guard. After the parties reached an agreement to refund, Xiao Gao had the right to recover the funds according to law.

Judge’s reminder

Remember three rules

“Three ironclad rules to avoid job-search traps”

Based on cases from recent years, the judge summarized three ironclad rules for job searching, reminding job seekers to protect their money:

Stay away from “investment-based hiring.” If there is an opportunity where they require you to contribute funds for buying in, pay upfront money, or promise principal-protected dividends, refuse resolutely.

Beware of the “paid internal referral” trap. Stick to official recruitment channels. Legitimate internal referrals and confirmation into full-time positions by regular companies have publicly stated processes. Be wary of “internal referral fees” and “full-time confirmation fees.”

Protect your rights according to law and keep evidence. Save chat records, contract agreements, and other evidence. If a dispute arises, seek rights protection promptly through legal channels.

The judge reminds that on the road to job hunting, never be overly eager for quick success, hold the bottom line of “don’t pay in advance,” and don’t let your job search turn into getting “set up.”