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Career Central Fined $6,000 For Overcharging Employment Agency Fees

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  1. An employment agency (EA), Career Central Pte Ltd, was sentenced to a total fine of $6,000 after pleading guilty in the State Courts today to two charges of collecting excessive agency fees from two foreign employees on two occasions in 2014.
  2. Under the Employment Agencies Act (EAA), EAs are not allowed to charge their clients any amount exceeding two months of their monthly salary as agency fees. Following the conviction of Career Central Pte Ltd, their employment agency licence is being reviewed. In the meantime, their license remains suspended.  


    Facts of the Case

  3. The offences took place during two distinct occasions in November 2013 and October 2014 when the two foreign employees first approached Career Central Pte Ltd to seek prospective job opportunities in Singapore. During the various stages of the recruitment process, the foreign employees were instructed to pay various non-prescribed fees (such as ‘administrative fees’ and ‘resume marketing’ fees), even before their job placements.
  4. In total, the foreign employees each paid Career Central Pte Ltd $7,519 and $7,919 as agency fees, which were more than two months of their salary. Career Central Pte Ltd had overcharged each of the two foreign workers in excess of $919 as agency fees.                                                                                        


    MOM’s Advisory: Do Not Pay Your EA More Than What is Required

  5. MOM would like to remind all licensed EAs to comply with the licensing conditions and regulations under the EAA. They are reminded to only collect fees (within the prescribed limits under the law) from clients after they have successfully placed job seekers with employers. Collection of non-prescribed fees by any EA is a contravention of the EAA. Failure to comply with the law can result in suspension of the licence or even revocation. 
  6. MOM reminds job seekers that they should not pay fees to their EAs until they are successfully emplaced with an employer. Upon payment of fees to the EA, job seekers should request from their EA the itemised receipts that show a breakdown of the services provided which they have paid for. 
  7. In addition, job seekers are advised to only use MOM-licensed employment agencies that can be verified through the EA Directory at www.mom.gov.sg/eadirectory. If they come across any malpractices committed by any EA, they should report the matter to MOM at mom_fmmd@mom.gov.sg or call 6438 5122.