FOREIGN WORKERS' AGENTS

Mr Thomas Thomas asked the Minister for Manpower whether he is aware of the practice whereby foreign workers pay huge sums of money to 'agents' to work in Singapore and, if so, what steps are being taken to stamp out this practice.

Dr Lee Boon Yang: Employment agents in Singapore are licensed and regulated by my Ministry. They are liable to lose their licences and security deposit should they breach the regulations or conditions of their licences. Under the Employment Agency Rules they can charge a worker and an employer a commission of up to a maximum of 10%, and 80% respectively, of the first month's earnings of the worker, for each successful placement.

However, foreign workers seeking work in Singapore typically first secure the service of "agents" in their home country. What these foreign "agents" charge for seeking jobs for their countrymen is totally beyond our laws and control.

My Ministry is aware that some Singapore employment agents do help their counterparts collect the foreign "agents' " fees. However, this is a business agreement between the parties which the foreign workers have knowledge of and accepted. This is not a violation of the Employment Agencies Act.