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MOM Suspends 2 Job Agencies For Illegal Job Fees!
Singapore's Ministry of Manpower suspends two job agencies for illegally collecting fees before placing workers in jobs.
D
Daily.SG Newsroom
Archive · 1 Nov 2024
KEY POINTS
- ●Two employment agencies had their licenses suspended for collecting fees upfront, which violates the Employment Agencies Act 1958
- ●The rule applies to all jobs, including overseas positions, and agencies cannot charge fees until a jobseeker is successfully placed
- ●For overseas jobs, agency fees are capped at no more than two months' salary
- ●Jobseekers are advised never to pay fees before securing employment and can report suspicious agency practices to the relevant authorities
- ●This enforcement action is part of ongoing efforts to protect vulnerable workers, especially those seeking employment abroad
IN SIMPLE TERMS
Two job agencies broke the rules by asking people for money before finding them jobs. The government shut down their licenses to protect job hunters. In Singapore, agencies are only allowed to charge fees after someone has actually been hired.
WHY IT MATTERS
Jobseekers are protected from predatory practices and financial exploitation by dishonest agencies.
Workers know their fees are capped and only due after securing a job, preventing upfront financial loss.
Enforcement sends a clear signal that employment agencies must follow the law or face license suspension.
The action particularly safeguards overseas workers who may be more vulnerable to unfair hiring practices.
WHERE DO YOU STAND?
Should Singapore's penalties for illegal fee collection by job agencies be even stricter to deter future violations?
👍 👎 Vote ↓The Full Story
- MOM suspends licences of two job agencies for illegal job fee collection.
- Global Recruiters and SDI Global violated Employment Agencies Act 1958.
- Jobseekers advised not to pay fees before successful job placement.
Singapore’s Ministry of Manpower cracks down on unfair employment practices, protecting jobseekers from illegal fees.
MOM Takes Action Against Unfair Employment Practices
On 1 Nov 2024, the Ministry of Manpower (MOM) took steps to protect jobseekers.
They suspended the licences of two employment agencies.
These agencies are Global Recruiters Pte Ltd and SDI Global Private Limited.
MOM did this because the agencies broke important rules.
According to MOM, “This will protect jobseekers from engaging these employment agencies for employment opportunities.”
Why Were The Job Agencies Suspended?
MOM started looking into Global Recruiters after getting two complaints.
People said the agency was asking for fees upfront for jobs in Europe.
SDI Global also got in trouble for collecting fees before finding jobs for people.
This is against the law in Singapore.
The Employment Agencies Act 1958 (EAA) says agencies can’t take fees before a person gets a job.
This rule applies to all jobs, even those overseas.
| Agency Name | Licence Number | Reason for Suspension |
|---|---|---|
| Global Recruiters Pte Ltd | 22C1327 | Collected fees upfront for Europe jobs |
| SDI Global Private Limited | 22C0975 | Collected fees before job placement |
Advice for Jobseekers
MOM has some important advice for people looking for jobs.
They say, “Jobseekers should not pay agency fees to their EAs until they are successfully emplaced with an employer.”
This means you should only pay after you get a job, not before.
There’s also a limit on how much agencies can charge for overseas jobs.
The fee can’t be more than two months of your salary.
How to Report Suspicious Activities
MOM wants everyone to help keep job agencies honest.
They have a special online service called “Report an infringement“.
You can use this to tell MOM if you see any suspicious activities.
This helps MOM take action quickly to protect jobseekers.
- Don’t pay fees before getting a job
- Check that the agency fee is not more than two months’ salary for overseas jobs
- Report any suspicious activities to MOM
- Use MOM’s eService “Report an infringement” to make reports
Why This Matters
These actions by MOM show they’re serious about protecting jobseekers.
It’s part of ongoing efforts to make sure job agencies follow the rules.
This helps create a fair job market for everyone in Singapore.
It’s especially important for those looking for overseas employment opportunities, as they might be more vulnerable to unfair practices.
MOM emphasized, “Under the EAA, the collection of agency fees before a jobseeker has been emplaced is not permitted and constitutes a contravention of the EAA.”
Do you think MOM’s actions will effectively deter employment agencies from engaging in unfair practices?
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