SINGAPORE — In a stunning move that has sent shockwaves through the job placement industry, the Ministry of Manpower (MOM) of Singapore announced on November 1 that it has suspended the licenses of two employment agencies, Global Recruiters and SDI Global.

This decisive action comes after a series of investigations revealed that both companies were engaged in the controversial practice of collecting fees from jobseekers before they had even secured employment.

The MOM revealed, “Investigations against Global Recruiters were initiated following multiple complaints regarding the agency's unlawful practice of charging fees upfront from individuals seeking positions in Europe.” Similarly, charges against SDI Global arose after clients came forward, alleging they had been forced to pay fees despite not being placed in jobs.

This alarming practice is a direct violation of the Employment Agencies Act, which explicitly prohibits agencies from charging fees prior to job placements, including those in overseas markets. The ministry has urged potential job seekers to remain vigilant, emphasizing that they should never pay fees until they have successfully secured a position.

Adding fuel to the fire, SDI Global, which rebranded to Crane HR earlier this year, faced severe backlash after several Bangladeshi workers claimed they were duped into paying thousands of dollars for work permits and visas for jobs that never came to fruition.

Their CEO, Sazzad Hossain, attempted to deflect responsibility by citing "unforeseen hiccups" and delays with embassies as reasons for lengthy wait times.

Meanwhile, Global Recruiters finds itself in hot water for reportedly intimidating jobseekers who dared to voice concerns after their payments resulted in no job placements.

This kind of behavior highlights a serious ethical dilemma in the recruitment sector, raising questions about the measures in place to protect vulnerable jobseekers.

In a bid to safeguard the interests of the public, MOM has reminded all job seekers that the maximum agency fee should not exceed two months of the salary offered for overseas job placements.

The authorities are encouraging anyone who suspects fraudulent employment practices—such as early fee collection or inflated charges—to report these incidents to MOM immediately.

As the job market continues to recover post-pandemic, it's crucial for job seekers to be aware of their rights and to exercise caution when dealing with employment agencies.

This latest scandal serves as a stark reminder of the need for transparency and ethical practices within the recruitment industry. Don’t fall victim to scams—know your rights and protect your hard-earned money!