Two employment agencies suspended for prematurely collecting agency fees

Two employment agencies in Singapore had their licences suspended for prematurely collecting agency fees from jobseekers.

The Ministry of Manpower (MOM) said it suspended the licences of Global Recruiters Pte Ltd and SDI Global Private following complaints that the agencies illegally collected agency fees upfront from jobseekers.

"This will protect jobseekers from engaging these employment agencies (EAs) for employment opportunities," MOM said in a media release.

Complaints against employment agencies

According to MOM, Global Recruiters had two fee-related complaints where the company allegedly charged and collected agency fees upfront from jobseekers seeking employment in Europe.

SDI Global also had complaints alleging that it collected agency fees prior to placing jobseekers.

These are violations under section 10(1)(a) of Singapore's Employment Agencies Act 1958 (EAA), according to MOM.

"Under the EAA, the collection of agency fees before a jobseeker has been emplaced is not permitted and constitutes a contravention of the EAA," the ministry said.

"This requirement is applicable even if EAs are facilitating overseas placements for jobseekers. Enforcement actions will be taken against such contraventions."

Meanwhile, MOM also reminded jobseekers to refrain from paying agency fees to employment agencies until they are successfully placed with an employer.

"The agency fee cap of no more than two months of salary is also applicable to the overseas job placement," MOM said.

It further urged the public who may be aware of employment agencies collecting agency fees upfront, among other suspicious employment activities, to report these cases to the ministry.