LICENSING OF EMPLOYMENT AGENCIES

Dr Kanwaljit Soin asked the Minister for Labour what measures are being taken (i) to regulate foreign maid agencies and (ii) to prevent these agencies from registering under a new company after their original company licence is revoked.

Dr Lee Boon Yang: All employment agencies in Singapore are governed by the Employment Agencies Act, Employment Agency Rules (1984) and (Amendment) Rules 1993, and a list of conditions of licence. If it is established that a licensee has contravened any of the provisions of the Act, its Rules, or conditions of the licence, section 11 of the Employment Agencies Act empowers the Commissioner for Labour to revoke the licence. The same penalty applies if the licensee is found to have conducted his employment agency business in a manner likely to be detrimental to the interests of his clients. The licensee's security deposit may also be forfeited

The Ministry of Labour (MOL) takes a very serious view of violations of the law or regulations by any employment agents. Since March 1992, more than 10 employment agents have had their licences revoked and their security deposits forfeited.

To regulate more effectively the employment agencies in Singapore, MOL recently announced a revised set of Employment Agency Rules. These Amended Rules took effect on 1st August 1993. One significant change is the increase in the security deposit, from $10,000 to $20,000. Amongst other things, the amended Rules also allow the Commissioner for Labour to make enquiries regarding persons who may have an interest in the grant or renewal of a licence, whether or not such persons are joined in the licence application. A licence will not be issued if the Commissioner finds the applicant or an interested party unsuitable, such as in the case of undischarged bankrupts, those convicted of offences like fraud, or in cases where it is considered in the public interest not to grant a licence.

If a licence is revoked for any reason, the licensees and directors of that agency will be prevented from obtaining any agency licence in the future, even under a different agency name. This is because anyone who has had an interest in an agency which had its licence revoked is deemed unsuitable to operate an employment agency, and hence would not be issued with a licence.