Ministry of Manpower To Publish Demerit Points on Website

In a speech by Mr Hawazi Daipi, Senior Parliamentary Secretary for Manpower and Education, at the Third Anniversary Dinner and Dance of the Association of Employment Agencies (Singapore) on 24 February 2006, he announced that Demeirt Points for Employment Agencies will be published on the Ministry's Website.

The speech is as follows:-

I am delighted to join you this evening to celebrate the third anniversary of the Association of Employment Agencies(S).

2 I have attended every one of the Association’s anniversary celebrations. Starting with just 130 members, the association has grown more than three-fold to some 450 members today. It has in a short space of time mobilised and helped its members improve professional standards through accreditation, and has ably discharged its role as the pace-setter within the industry.

Accreditation Scheme

3 As we look back at the accreditation drive over the past few years, I think the Association has much to be proud of. From its inception in May 2002, the accreditation scheme today accounts for more than 80% of all foreign domestic workers-placing employment agencies. The AEA(S) should be congratulated for making great inroads in implementing the accreditation scheme.

4 Numbers are of course just part of the picture. A 100% participation rate in the accreditation scheme is not the end in itself. Over time, accreditation must mature and evolve into a mark of true quality in the industry. The accreditation symbol should convey a guarantee of responsive service, efficiency and integrity. It must be actively sought after and valued by the discerning consumer.

5 To achieve this, the standards of accreditation cannot remain static. It must evolve over time. This evolutionary process must be one that is both top-down and bottom-up. While the association checks standards with regular audits and assessments, the motivation for self-improvement must come from each and every individual EA. As EAs, you must believe that abiding by and raising accreditation standards benefits each and every one of you. By doing so, you raise the value of the accreditation logo that each of you proudly displays at your office. By ensuring that accreditation is much more than a paper exercise, you stand to gain when the credibility and reliability of the industry as a whole is improved.

6 So what should be the ideal employment agency landscape? What should the industry as a whole, guided by the Association, strive towards? Let me suggest some ideas. Firstly, EAs should serve as effective intermediaries between employer and employee. They should match and manage expectations between both parties, and be transparent, fair and honest to both parties in the transaction. When bringing in foreign workers, the EA must help its clients comply truthfully with Government regulations, and refrain from exploiting the ignorance of vulnerable workers. Finally, competition between EAs should be based on the quality of their labour supply and their service standards, not by compromising on service standards in order to cut costs. The industry must come together to discourage a “race to the bottom” which will be detrimental to all in the long run.

The Next Step: Standard Contracts

7 This picture I have painted may be a reality sooner than we think. I understand that the Association, together with CaseTrust, has taken the initiative to discuss and champion standard contracts in the industry. The standard contracts, comprising the Employment Contract between the employer and the foreign domestic worker as well as the Service Agreement between the employer and the employment agency, are designed to increase transparency of contractual terms to both employers and workers. They will help to reduce misunderstandings and disputes, and result in a win-win for all stake-holders involved - employment agencies, employers and foreign domestic workers. This is a good initiative. I look forward to the successful conclusion and implementation of these standard contracts.

Role of the Government

8 I am glad to say at this point that the Association is not alone in its quest to raise professional standards within the industry. The Government recognises that in spite of best efforts, it only takes a few bad apples to spoil the name of the industry. The Government has therefore stepped up its efforts to target the few errant EAs whose actions give the industry a bad name.

9 In the past, the public would only hear of an errant EA after it has committed enough infringements for its licence to be removed by the Ministry. This may be cold comfort to consumers who have signed up with the EA, as well as to other law-abiding and professional EAs. To increase market transparency, the Ministry has implemented the Demerit Point System with effect from February this year. Under this system, employment agencies that breach the Employment Agency Act, Rules or Licence Conditions will be notified and issued with demerit points depending on the severity of the infringement. Such EAs will lose their licenses if they accumulate enough demerit points within a licensing period. The accumulated points will also be published and made available to the public. This system provides early warning to employment agencies which have breached minor infringements to improve. At the same time, it will help consumers identify employment agencies that flout the Ministry’s rules. The majority of good EAs therefore become more readily distinguishable from the errant ones.

10 To increase transparency in the marketplace, the Ministry will also expand its published EA Directory to provide certain key information on EAs. The publicized information will include the accreditation status of the EA, the date on which it was first licensed and the demerit points it has accumulated within its licensing period. These efforts at promoting transparency within the industry will allow employers to select EAs based on quality as opposed to price.

Conclusion

11 In conclusion, I would like to extend my congratulations to the outstanding employers and foreign domestic workers who are receiving awards tonight. Every single story is inspiring in its own right and I encourage all of you to continue to serve as role models to the rest of the employers or foreign domestic workers in Singapore. I urge the association to continue this fine tradition of recognising outstanding employers and foreign domestic workers in your future anniversary celebrations.

12 I mentioned at the first anniversary celebrations how the government views the Association as a strategic partner. The Association has done much in these three years to raise professionalism within the industry, and much is owed to its present Committee for providing strategic direction for the future of the accreditation scheme. As the Association grows from strength to strength, MOM looks forward to many good years of continued partnership with the association.

13 On this note, I wish all of you a pleasant and enjoyable evening. Thank you.


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