Employment Agency Licensee fined $17,300 under the Employment of Foreign Manpower Act and Employment Agencies Act

1. On 25 July 2019, a 51-year-old employment agency licensee, Gulab Singh of IBS Consulting Services, was convicted of overcharging employment agency (EA) fees, failing to issue written itemised receipts and receiving monies from a foreign worker as a financial guarantee for the worker’s employment. The Singaporean was fined $17,300, and ordered by the court to pay compensation monies to the affected foreign workers.  
2. Gulab Singh was convicted of two counts for overcharging a total of $1,664 from two foreign workers sometime between September 2017 and June 2018. He pleaded guilty to not issuing a written itemised receipt to a foreign worker after receiving his EA fee. Gulab Singh also admitted to receiving $5,284 meant as a financial guarantee from another foreign worker. In addition to his conviction, the Ministry of Manpower (MOM) will also revoke his EA licence.
   
   EAs’ responsibility to comply with the law
3. Commenting on the case, Mr Kevin Teoh, Commissioner for Employment Agencies said, “Overcharging EA fees and collecting kickbacks from foreign workers are egregious offences. A fee cap is in place to prevent excessive agency fees. We will not hesitate to prosecute EAs, including permanently barring them from the EA industry”. 
   
   Advisory to workers 
4. Foreign workers who are pressured into giving kickbacks, or face problems with their EAs should seek help immediately by calling MOM at 6438 5122 or the Migrant Workers’ Centre at 6536 2692. 
5. Members of the public who know of persons or employers who contravene the Employment of Foreign Manpower Act or Employment Agencies Act, should report the matter to MOM via the MOM website (www.mom.gov.sg) under “Contact us”, or call 6438 5122. All information will be kept strictly confidential.