Sweeping law changes proposed to tackle illegal employment agents
By Imelda Saad | Posted: 22 November 2010 1903 hrs
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SINGAPORE: Authorities are clamping down on illegal employment agencies in a bid to stem growing problems associated with workers left in a lurch such as unpaid salaries and unscrupulous employers.
Sweeping changes to the Employment Agencies Act were tabled in Parliament on Monday, the first time in 26 years that the Act is being amended.
Employment agencies act as middlemen linking up job seekers with employers. They deal with both local and foreign workers.
But industry players say the problem is often with agencies dealing with foreign workers.
Although there are more than 2,500 licensed employment agencies now, unlicensed ones are still sought after.
The reason - money.
Industry players say a licensed agency can potentially pocket thousands of dollars worth of kickbacks from an unlicensed one by supplying them labour.
"Someone who recommends a job to a worker and goes maybe to a coffeeshop owner and says 'look, I have this worker'. Sometimes, somehow the kickbacks get shared among a few people at the expense of the poor foreign worker," said Shirley Ng, president of the Association of Employment Agencies.
A foreign worker could pay up to S$8,000 to an agent to work in Singapore, only to be left jobless when he arrives here.
Ms Ng said: "In the worst case scenario, an unlicensed employment agency may offer a job, or shall we say on the pretext of offering a job to workers when there's actually no such job available. After taking the kickbacks, they disappear and these workers are left stranded and becomes a social problem to Singapore."
The Ministry of Manpower (MOM) said current laws contain loopholes for abuse.
To address this, penalties will be enhanced and accountability raised for key stakeholders.
For example, unlicensed employment agencies could face a fine of up to S$80,000 and two years' jail instead of a flat fine of S$5,000.
Repeat offenders could face a fine of up to S$160,000 and four years in jail.
To curb the demand for the services of illegal agents, those who knowingly engage or are in cahoots with unlicensed ones also face the law.
For example, licensed agents who make employment-related applications on behalf of unlicensed ones without conducting due diligence, could be fined up to S$80,000 and jailed up to two years.
Those who engage an unlicensed employment agency could be fined S$5,000 for every worker recruited through an unlicensed employment agency.
To raise the accountability for all stakeholders, all agents including rank and file staff will need to be registered and certified.
Currently only licensees of employment agencies need to be certified.
There are also plans for a higher security deposit, currently pegged at up to $20,000. MOM said it will only reveal the new quantum at a later date.
The bar for employment agency licensees and personnel will be raised. Those with a criminal record, for example, will be debarred.
The range of scenarios in which licences may be revoked will also be expanded to include employment agencies which have ceased operations for a continuous period of six months.
MOM will also introduce a new Office of Commissioner of Employment Agencies, which will be assisted by deputy and assistant commissioners, to assume the responsibility for the overall administration of the Employment Agencies Act.
To give time for employment agencies to adjust, the changes will be phased in.
The new law is expected to kick in by April next year but staff of employment agencies have up to three years, till April 2014, to get certified.
Key appointment holders like managers and directors have to do so earlier, by 2012.
Welcoming the proposed changes, Ms Ng said they will also help to level the playing field for bonafide employment agencies.
"Can you imagine, we are governed by so many restrictions and these unlicensed people are doing business any way they like. So I think it's not fair because we are always subjected to the stress and fear of breaking the rules," said Ms Ng.
MOM could not give a figure on the number of unlicensed employment agencies in Singapore.
But considering the rising number of complaints, the problem may be rampant.
The number of complaints against agencies rose from 529 in 2006 to 1,280 in 2009.
Industry players say the problem may have spiked because of the large inflow of foreign workers during the economic boom years.
- CNA/ir
