JOB PLACEMENT FOR FOREIGN WORKERS

JOB PLACEMENT FOR FOREIGN WORKERS

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(Prevention of exploitation): **

9.

Mr Christopher de Souza asked the Minister for Manpower (a) over the last two and a half years, how many foreign workers have been exploited by unscrupulous agents who promised them jobs which did not materialise and how much debt such workers have incurred in order to work in Singapore; (b) what measures does the Ministry have in place to curb such incidences; and (c) if the Ministry will consider (i) facilitating direct job applications by foreign workers; and (ii) making it compulsory for the employer to settle his worker’s debt to his agent in the event of a termination.

Mr Gan Kim Yong: MOM does not have statistics on the number of foreign workers that have been misled by employment agencies with false promises of jobs in Singapore, as these promises are made in the source countries and are therefore difficult to verify. Based on anecdotal evidence, foreign workers typically incur about S$2,000 to $10,000 in debt to work in Singapore, depending on their source country and the number of intermediaries involved in the recruitment process.

In the current economic climate, some companies will not be in the position to guarantee jobs for all their workers, local or foreign. Some may be forced to terminate contracts prematurely. The Employment Act requires employers to provide sufficient notice to their workers prior to premature termination of their employment contracts.

However it would be onerous to force employers to settle his worker’s debt to his agent in the event of a termination. Anecdotal evidence suggests that the bulk of the fees paid by the foreign workers are often paid to fellow countrymen in their own countries. Employers typically do not have influence over the quantum of the overseas debt incurred by the workers and have no way of verifying the purported debt quantum.

Debts paid overseas are also beyond Singapore’s legal jurisdiction. It is the responsibility of the foreign governments to enforce their laws and take action against the errant employment agencies in their own countries. To facilitate the investigations of foreign governments, MOM works closely with the foreign embassies and share relevant information obtained during the course of our investigations. MOM also permits employers to recruit workers directly without going through an employment agency, thereby potentially reducing the debt quantum.

MOM has put in place a number of measures to curb incidences of local employment agencies misleading foreign workers with false promises.

(a) First, MOM has tightened the Work Pass approval process to require construction and marine companies to show documentary proof that they have ongoing projects before work passes are issued.

(b) Second, MOM introduced new Work Permit and S Pass conditions in 2008 to make it an offence for employers to accept or ask for kickbacks (1).

(c) Third, MOM also reviewed employment agents’ licensing conditions to prohibit local agencies from being party to kickbacks (2).

MOM actively investigates and takes action against errant Singapore employment agencies and employers who flout our laws and regulations. Earlier this year, the SME Group of 14 companies was discovered to be involved in employing phantom workers and owed salaries to about 570 PRC workers. Three of the directors were charged in Court for employing phantom workers between February and March.

By the same token, MOM also holds foreign workers to account if they have made false accusations or statements against their employer or agency. In September 2008, 29 Bangladeshi workers from San's Marine Engineering Service, Han's Marine and K7 Engineering, approached MOM to complain against their employers for deploying them to other areas of work but were later found to be providing false information (3) and sentenced to two weeks’ imprisonment in April this year.

In instances where employers have absconded or are unable to pay salary arrears, MOM arranges for settlement packages with company representatives and facilitates their repatriation. MOM also works closely with the Migrant Workers Centre (MWC) to reach out to the foreign workers to provide humanitarian assistance such as food and lodging to those who require it.

(1) Employers who breach these conditions will be fined up to $5,000 and/or imprisoned for up to six months under the Employment of Foreign Manpower Act. They will also be barred from employing foreign workers in future.

(2) Employment agencies which breach the licensing regulations are liable to have their licenses revoked and their security deposits of $20,000 forfeited.

(3) Upon investigation, we found that their real intention was in fact, to obtain Special Passes under the Temporary Job Scheme (TJS) to extend their stay in Singapore.