The labor ministry has asked the operator of a popular video posting website to stop levying a fee on job applicants, saying the practice could make it harder for poorer recent university graduates to find work if it spreads, the firm, Dwango Co., said.

Dwango introduced a ¥2,525 fee for applicants for spring 2015 openings, saying it was "not aiming at making money but to narrow down the applicants to those who really want to join the company."

It added that the fees would fund scholarships and other purposes but it will consider whether to continue the practice.

Dwango said it decided to charge the fees because "both employers and students suffer from a large number of job applications made through the Internet."

In mid-February, the ministry's Tokyo Labor Bureau asked the company to stop charging applicants starting with spring 2016 openings. The company was told "there is a concern that students without money may not be able to make applications if (the practice) spreads to other companies."

The Employment Security Law stipulates that companies recruiting workers must not receive any compensation for any purpose. The ministry did not tell Dwango whether the company's fee is tantamount to such compensation, the firm said.