H
Hanzo Kattori
Guest
Jan 12, 2011
Law gets tough on errant job agencies
Employment Agencies Act changes will protect workers and employers
By Cai Haoxiang
Changes to the Employment Agencies Act will benefit employers and workers alike as malpractices over the employment of foreign workers will be weeded out. Recruitment and employment standards will also be improved. -- ST PHOTO: DESMOND LIM
BROAD changes have been made to the law governing employment agencies, as the authorities move to clean up an industry rife with complaints about errant companies and their practices.
There are now stiffer penalties against unlicensed agencies, a revised cap on fees that employers and workers can be charged, and a mechanism for fees to be refunded to workers whose contracts are terminated within six months of their taking up the job.
In Parliament on Tuesday, Minister of State for Manpower Lee Yi Shyan said the changes to the Employment Agencies Act will benefit employers and workers alike as malpractices over the employment of foreign workers will be weeded out. Recruitment and employment standards will also be improved.
'Vulnerable workers will enjoy greater protection against the unethical practices of unlicensed and errant players... Employers will benefit from the greater certainty and transparency in the recruitment process,' he said during the debate.
One key change is to stamp out unlicensed agencies. Anyone who operates such an agency faces a fine of $80,000 and/or a jail term of up to two years.
Reflecting on the need for stiffer penalties and how the previous $5,000 fine did not serve as a deterrent, Mr Lee noted that illegal agencies would charge workers $3,000 to $10,000 to get jobs here.
Read the full story in Wednes
