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Employment Agencies Regulatory Framework (key legislation and regulation…
Employment Agencies Regulatory Framework
intro
took effect from 1 April 2011
intent
regulate individuals and entities
actively involved in matching job seekers and employers and vice versa
substantially influence the outcome of the employment terms and conditions
rise the level of professionalism and accountability
building greater confidence in the industry
weed out unlicensed EA which may have an unfair advantage through illegal practices
objective
enforcement against unlicensed and errant EA
rise professionalism and accountability
cater different needs in the industry
Note
EA - Employment Agency
KAH - Key Appointment Holder
constitute of
security deposit framework
EA Act (Chapter 92)
certification and registration
EA (Exemption) Order 2011
license framework
EA Rules 2011
EA (Exemption) Order 2014
EA License Conditions
EA activities
collation of biodata/resume to establish employer-employee relationship
submission of work pass application
communication with job seeker for processing employment related application
helping to place job seeker with an employer
EA Directory
demerit points
EA under surveillance (>12 demerit points)
licence validity
FDW EA
Revoked EA
convicted unlicensed EA
EA Licences
type
Comprehensive License (ALL)
any type of workers
3 years validity
deposit
new: $60K
Renew: $20K - $60K
demerit points
placement vol of WP/S Pass
registration required for all staff
name
photograph
registration no
cert: needed
CEI KAH
CEI Basic
Select License (SL)
for monthly salary > $4.5K
3 years validity
deposit
new: $20K
Renew: $20K - $60K
demerit points
registration required for all staff
name
photograph
registration no
cert: not required
Comprehensive License (Local)
local workers only
3 years validity
deposit
new: $60K
Renew: $20K - $60K
demerit points
placement vol of WP/S Pass
registration required for all staff
name
photograph
registration no
cert: needed
CEI KAH (w/o EFMA module)
CEI Basic (w/o EFMA module)
Comprehensive License (non FDW)
local and foreign workers except FDW
3 years validity
deposit
new: $60K
Renew: $20K - $60K
demerit points
placement vol of WP/S Pass
registration required for all staff
name
photograph
registration no
cert: needed
CEI KAH (with EFMA module)
CEI Employment Agency Personnel (with EFMA module)
rationale
determine the amount of security deposit
volume of placements
demerit points
asses the need to register EA Personnel (CEI cert)
recognize diversity in operating models and offer flexibility to cater to diff needs
related fees
licence fee $100
fees applicable during renewal
application fee $400
key legislation and regulation
overcharge (to worker)
section 23(1) of EA Act
dont breach the fee cap
penalties
1st conviction
fine <=$5K
subsequently
fine <=$5K
prison <= 6 months
exclusion
fees payable to overseas EA
payment to 3rd party that is necessary for job placement
visa
passport
airfare
keep proof of payment for audit purpose
Failure to issue receipt
section 12(4) of EA Act
EA to issue itemized receipt
EA to keep record for audit purpose
penalties
1st conviction
fine <= $1K
subsequent
fine <=$2K
prison <= 6 months
not provide fee refund
section 13 EA Act
no need to refund if the worker requests for termination or absconds
payment of refund
7 working days from termination
before repatriation
50% refund to worker if employment is prematurely terminated <=6 months
Prescribed Fees
section 14 EA Act
charge and receive in prescribed manner
section 12(1) of EA Act
to employer
no cap on fee
stronger bargaining power compared to workers
to worker
no fee prior placement
foreigner
before in principal approval (IPA)
local
before sign contract date
no deposit before placement is done
fee shouldn't be more than 1 month salary per year
for the duration of approved work pass
employment contract
whichever is shorter
fees include any services conducted in and outside Singapore
cost of training
medical check up
no registration fee
max cap is 2 months salary
salary = basic + fixed allowances
engage unlicensed agents
section 22 of EA Act
directly or indirectly engage
exercise due diligent
penalties
fine <= $5K per employee
unlicensed EA
section 6 of EA Act
penalty
1st conviction
prison <=2 years
fine <= $80K
2nd conviction
fine <=$160K
prison <= 4years
make certain application
section 22B of EA Act
do not make application on behalf
unlicensed EA
revoked EA
suspended EA
exercise due diligent
penalties
1st conviction
fine <=$80K
prison <= 2 years
subsequent
fine <= $160K
prison <= 4 years
offer of fees
section 15 of EA Act
prohibits from offering/giving benefits
for continuing to employ
as financial guarantee in relation to the employment
for employing a person
penalties
fine <=$5K
prison <= 6 months
liability of licensee
section 21 of EA Act
liable for the same act, omission, neglect or default
subject to the same penalties as the principal offender
false info to Commissioner for EA
section 22 of EA Act
penalties
fine <= $15K
prison <=12 months
false info for employment application
section 23(2) of EA Act
Licensee and personnel each be guilty
penalties
fine <= $15K
prison <=12 months
instigate/induce of person not to employ a job seeker who did not use the services of the EA
Section 23(3) of EA Act
penalties
1st conviction
fine <= $2K
subsequent
fine <= $5K
prison <= 6 months
not disclose Dispute Resolution Mechanism
Section 14 of EA Act
must disclose mechanism before providing any service
set out steps in the event of dispute
3rd party mediator should
be the provider of mediation service
be informed
must agree to provide the service
penalties
1st conviction
fine <= $1K
subsequent
fine <= $2K
prison <= 6 months
EA actions are detrimental to clients and public interest
Section 11(1)(c) and (f) of EA Act
may result in
imposition of demerit points
suspension or revocation of licence
example
wrong advice about MOM regulations
provide inaccurate resume to potential employers
discriminatory job posting
obstructing EA inspector
Section 23(4) of EA Act
penalty
fine <= $5K
prison <= 6 months
power of inspector
enter and search premises
ask any person for info/docs
take photographs / audio / video
arrest and detain less than 48 hours without warrant
to be armed
contravene any license conditions
Section 23(5) of EA Act
Commissioner may
revoke/impose new conditions
grant/renew licence with conditions
penalty
fine <= $5K
prison <= 6 months
MOM's communication with EA
EA alerts via email
contains developments, amendments, and other responsibilities
EA must provides updated email address
EA Licence Conditions (EALCs)
CL 1(a) : SL 1(c)
no placing foreigners in a training programme
Note
CL: Comprehensive Licence
SL: Select Licence
CL 4(b) : SL 4(b)
name and licence no of EA personnel in all docs where the person is involved in
CL 5(c) : SL 5(c)
retain docs for min 3 years from the date of work pass application / renewal
CL 6A(a) : SL 6A(a)
must report all known breaches of Act
CL 9 : SL 9
secure written authorization before making any work pass transactions
CL 5(b)(i) : SL 5(b)(i)
provide MOM with info for contract/perm placement >= 6 months and salary >= $3.3K
CL 7 : SL 7
verification check for entry requirements
CL 4(a) : SL 4(a)
use EA name and licence no in all docs
Good practice
duty of care
personnel professionalism
undergo training
continuous development
advertising of services
accurate
not misslead
exploit employer's lack of expertise
honor advertised terms
furnish relevant info to prospective clients
knowledge and compliance with laws and guidelines
follow Employment Agencies Regulatory Framework (EARF)
falling short may result in
imposition of demerit points
suspension or revocation of licence
service agreement (with employer)
dispute mechanism
written acknowledgement that he/she understands and agrees to the t&c
state clearly terms of service
refund
replacement policies
fees
provide copy of the contact
complaint and dispute resolution
soliciting feedback
take all necessary measures to resolve dispute
abide with the outcome of mediation or adjudication by 3rd party
Eligibility Criteria
KAH
not previously a director/management of EA whose licence had been revoked
not a convicted of an offence involving
dishonesty
human trafficking
not a undischarged bankrupt
Other personnel
not a convicted of an offence involving human trafficking
not previously a director/management of EA whose licence had been revoked
Employment Agency
is
any company ... the employment of persons in any capacity
carried on
represented as being
intended to be carried on for
in connection with
is not any company
hires employee under its own headcount
and deploys them to work as outsourced staff
while maintaining an employer-employee relationship
non compliance
actions can be taken against
licensee of the EA
EA personnel
type
enforcement
offer of composition fines
prosecution
warning
administrative
issuance of demerit points
licence revocation/suspension
caused by
acted in a manner detrimental to interest of
clients
public
contravened provisions of
EA Act/Rules
EA Licence Conditions (EALC)
has ceased business
dormant for continuous period of 6 months
steps to revoke/suspense
licensee will be informed in writing
refund fee where applicable
not to collect fee
must inform clients of suspension/revocation
refer clients to other EA
not to submit work pass application
effected after 14 days notification
appeal within 14 days of notification
decision of appeal made by Minister and final
Commissioner may reinstate licence
criminal offence
no longer fit and proper
difference
revocation
cease operation immediately
suspension
serve existing obligations
not allowed to take new agreements
Commissioner may impose additional limiting conditions
penalty
1st
fine <= $80K
prison <= 2 years
subsequent
fine <= $160K
prison <= 4 years
forfeiture of security deposit
Demerit Points
system
demerit point => 12, surveillance for 12 months
new infringement may result in suspension/revocation
subject to audits
WP & EP online account suspended for 3 months
can renew licence but still under surveillance
surveillance status made known on EA Directory
offence under surveillance
licence revocation
more penalties
based on the severity of the offence committed
low
medium
high
valid for 12 months, maybe extended if accumulate fresh demerit points
almost the same way as driving licence
giving up licence during demerit points period will not erase demerit points during reapplication
validity
less than 12 points
each demerit point will remain live for 12 months from date of issue
12 or more
accumulate new demerit point
new accumulated points will have new 12 months life cycles from the date of new demerit issuance
no new demerit points
record clear within the next 12 months
admin requirement
12 points
must top up security deposit back to $60K
placed under surveillance
KAH retake exam
WP and EP online acc will be suspended
forfeit $10K security deposit
18 points
forfeit total of $25K security deposit
top up deposit back to $60K
under surveillance
8 points
deposit min $60K
24 points
licence will be suspended/revoked
4 points
deposit min $40K