EMPLOYMENT AGENCIES OFFERING REBATES TO EMPLOYERS FOR EMPLOYING FOREIGN WORKERS

EMPLOYMENT AGENCIES OFFERING REBATES TO EMPLOYERS FOR EMPLOYING FOREIGN WORKERS:

* 11. *Mdm Halimah Yacob asked the Acting Minister for Manpower (a) whether it is legal for employers to receive rebates from employment agencies for employing foreign workers; (b) what is the impact of such practices on the foreign worker levy policy which is aimed at regulating the inflow of foreign workers; and (c) what measures will be taken to prevent foreign workers from being exploited under such rebate schemes.

12.

Mr Baey Yam Keng asked the Acting Minister for Manpower (a) whether the reported practice of employment agencies offering rebates to attract employers to take in foreign workers is prevalent; and (b) how is the Ministry addressing this issue where the foreign workers appear to have been exploited.

The Acting Minister for Manpower (Mr Gan Kim Yong): Mr Speaker, Sir, with your permission, I would like to take Question Nos. 11 and 12 together.

Mr Speaker: Yes.

Mr Gan Kim Yong: Sir, the Ministry of Manpower does not condone the practice of employment agencies offering incentive payments or rebates to employers for hiring foreign workers through them. MOM is currently investigating a number of such cases based on feedback received.

Firstly, employers are not allowed to recover, directly or indirectly, the foreign worker levy from their foreign workers. Employers who receive "rebates" could be construed as being in breach of the Employment of Foreign Manpower Act. If convicted, they will be liable to a fine of up to $5,000 or six months’ jail, or both. These employers will also be barred from employing foreign workers in the future.

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Secondly, MOM considers employment agencies that offer such rebates to employers, to be acting against the interest of the workers they are emplacing. MOM will therefore revoke the licence of such agents, and to forfeit their security deposit.

Thirdly, MOM is working with its tripartite partners, such as the Singapore National Employers Federation, to raise awareness among employers of the consequences of such practices. Foreign workers are also made aware of the work permit conditions and the obligations of employers, through guidebooks as well as briefings when they attend mandatory safety courses.

To tighten the regulatory regime for employment agencies and work permits, MOM intends to impose a new licensing condition on employment agencies, to make it an offence for them to offer, directly or indirectly, any form of payment to employers, in exchange for hiring foreign workers through them. A new Work Permit condition will also be imposed on employers, to make it an offence for them to receive such payments.

These new conditions will make it clearer for employers and employment agencies that such practices will constitute an offence.

Mdm Halimah Yacob (Jurong): Sir, if this practice of giving rebates to employers is not legal, I would like to ask what steps have MOM been taking in order to curb this practice. How many employers and employment agencies have to-date been prosecuted for violating this rule and what has MOM done for those foreign workers who are affected by this rebate scheme?

Mr Gan Kim Yong: Mr Speaker, Sir, as I explained in my speech, MOM is taking steps to tighten the regulatory regime to

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ensure compliance of employment agents as well as employers with this rule. MOM is taking a very serious view on this and we will step up our enforcement efforts. With regard to the workers who are affected by this rebate scheme, we will have to consider on a case-by-case basis on the scenario and background of these workers, and we will try to find ways to help them resolve their problems which they have with their employers.

Ms Eunice Elizabeth Olsen (Nominated Member): Sir, can I just ask the Acting Minister how is the Ministry working with the High Commissions to basically enforce this?

Mr Gan Kim Yong: Sir, Ms Eunice Olsen raised a very important issue and, that is, some of these practices were actually carried out in the source country where the workers come from and these countries are beyond the jurisdiction of the Ministry of Manpower. So MOM actually has been working with the Embassies and the High Commissions who are in Singapore. We work through them and help them to disseminate information, especially with regard to employment agencies which are accredited, so that these workers who are attracted by the opportunities in Singapore have an avenue to find out more information of which are the agencies that are accredited so that they would be able to make an informed decision. Ms Olsen is right that MOM is working with Embassies who are here to help to disseminate this information to the workers back home before they come to Singapore.