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Employment Agencies Regulatory Framework (Foreign Workers) (some licence…
Employment Agencies Regulatory Framework (Foreign Workers)
MOM's communication with EA
must update email of all EA personnel
MOM regularly sends email "EA alerts"
legislative amendments
other EA's responsibilities
developments affecting the industry
Good EA practices
service agreement between EA and employer
explain and obtain Employer's written acknowledgement that he/she understands and agrees to the terms
dispute resolution
provide a copy to the employer
states clearly its terms of services to the employers
refund and replacement policies
provision of upkeep and maintenance during foreign worker's stay with the EA
breakdown of service fee payable to
EA
overseas EA (if applicable)
service provided should employer need it
note
falling short of good practices may
result in the imposition of demerit points
suspension or revocation of the licence
constitute as being detrimental to client's interest
honoring agreements
including the timelines committed to clients
all terms and conditions should be in writing
maintain confidentiality of info in accordance with the PDPA
other good practices
have proper SOPs
provide accurate advise about MOM's processes and regulations
keep updated of MOM's developments through its's website and EA alerts
ensure employers notify worker during termination
offences
Prescribe fees for services rendered
Section 14 of EA Act
it is lawful to charge and receive fees in the 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
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
offence to retain passport or other docs of identity
section 10(2) of EA Rules
such docs are personal identifiers that belongs to the foreign employee
penalty
1st conviction
fine <=$5K
subsequent
fine <=$5K
prison <= 6 months
do not retrain beyond the time frame needed to facilitate placement, extend validity of the passport or perform other official work
return the passport as son as practically practicable
not a reasonable excuse: EA has passed the doc to
another licensee
EA personnel
EA (located in singapore or elsewhere)
offence to bring foreigner into Singapore without In-Principle Approval
section 10(1) of EA Rules
penalty
1st conviction
fine <=$5K
subsequent
fine <=$5K
prison <= 6 months
EA isn't allowed to bring in a foreigner into Singapore to seek employment unless has an In-Principle Approval issued by Controller of Work Pass under an Employer
Failure to issue receipt
section 12(4) of EA Act
EA to issue itemized receipt
EA to keep record for audit purpose
paid by worker directly
paid by supplier/overseas EA
Salary and Loan schedule are not considered itemized receipts unless explicitly stated and given to the foreign worker
penalties
1st conviction
fine <= $1K
subsequent
fine <=$2K
prison <= 6 months
note: applies to local workers as well
not provide fee refund
section 13 EA Rules
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
contravene any license conditions
penalty
prison <= 6 months
fine <= $5K
Commissioner may
grant/renew licence with conditions
revoke/impose new conditions
Section 23(5) of EA Act
some licence conditions
Employment Agency Licence Condition (EALC) 5(C)
docs retention period
original, copies or electronic forms
min 3 years
starting from WP application/renewal
EALC 7
ensure foreign employees meet entry requirements
EALC 8a
representation of fees or costs
reflect fees and costs individually and accurately
example of cost
WP application fee
WP issuance fee
Settling in programme course fee
security bond
medical insurance
communicate the cost to client before engagement
EALC 8b
must be signed by EA and clients
written agreement stating the breakdown of the cost payable
EALC 9
written authorization for WP transactions (application/renewal/cancellation)
obtain from
existing employer
prospective new employer
EALC 9A, B, C
In-Principle Approval letter
is received by the foreign worker at least 3 - 7 days prior to departure to singapore
informs
rights and responsibilities
opportunity to clarification with local agent before commencing employment
employment terms
retained by the foreign worker
EALC 11(a)
if WP revoked because he/she doesn't meet MOM requirements, EA must
repatriate
bear the cost of repatriation
EALC 11A
before repatriation, check
outstanding claim
intention to file claim
under EA or Work Injury Compensation Act
if MOM requires him to stay
EALC 11B, C
ensure foreign worker return to his hometown when WP is
canceled
revoked
expired
if the destination is not his hometown
notify Controller of Work Passes through the cancellation page in WP online
ensure arrangement has been mutually agreed
Demerit Points
admin requirement
4 points
deposit min $40K
24 points
licence will be suspended/revoked
8 points
deposit min $60K
18 points
under surveillance
top up deposit back to $60K
forfeit total of $25K security deposit
12 points
forfeit $10K security deposit
WP and EP online acc will be suspended
KAH retake exam
placed under surveillance
must top up security deposit back to $60K
validity
12 or more
no new demerit points
record clear within the next 12 months
accumulate new demerit point
new accumulated points will have new 12 months life cycles from the date of new demerit issuance
less than 12 points
each demerit point will remain live for 12 months from date of issue
system
giving up licence during demerit points period will not erase demerit points during reapplication
almost the same way as driving licence
valid for 12 months, maybe extended if accumulate fresh demerit points
based on the severity of the offence committed
high
medium
low
offence under surveillance
more penalties
licence revocation
demerit point => 12, surveillance for 12 months
can renew licence but still under surveillance
WP & EP online account suspended for 3 months
subject to audits
new infringement may result in suspension/revocation
surveillance status made known on EA Directory
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