Two employment agencies suspended for collecting fees before securing clients’ jobs

SINGAPORE: The Ministry of Manpower (MOM) on Friday (Nov 1) suspended the licences of two employment agencies involved in placing workers in overseas jobs.
The ministry said it suspended the licences of Global Recruiters and SDI Global after investigations found that the two companies had collected agency fees upfront despite not having secured job emplacements for their clients. 
“MOM commenced investigations against Global Recruiters following two fee-related complaints against the company for charging and collecting agency fees upfront from individuals seeking employment in Europe,” said the ministry.
“MOM also investigated SDI Global following complaints made against the company that it had collected agency fees prior to emplacing jobseekers.”
Under the Employment Agencies Act, employment agencies are not allowed to collect their fees before a jobseeker has been placed. This applies even to job placements overseas.
Earlier this year, SDI Global, which rebranded to Crane HR, came under fire after several Bangladeshi workers accused the company of taking thousands of dollars in payments for work permits and visas abroad that never materialised.
CEO Sazzad Hossain had blamed “unforeseen hiccups” in securing visas and work permits, including embassy appointment delays, for causing long waiting periods.
Meanwhile, recruitment agency Global Recruiters had been accused of threatening jobseekers who raised complaints after the company failed to secure employment for its clients despite collecting fees.
MOM advised jobseekers not to pay fees to employment agencies until they are successfully placed with an employer.
“The agency fee cap of no more than two months of salary is also applicable to the overseas job placement,” it added.
Jobseekers and members of the public who are aware of suspicious employment activities, such as employment agencies collecting fees before job placements are made, or overcharging of fees, are advised to report the matter to MOM.