Employment Agency Security Bond
What is an Employment Agency Bond?
An employment agency bond is a security bond (in the form of a banker’s guarantee) that is made payable to the Commissioner for Employment Agencies before an employment agency (EA) licence can be issued. The main purpose is to ensure that EAs conduct their business in accordance with the conditions imposed by the EA licence and comply with the provisions of the Employment Agencies Act. It can also be used to meet the EA’s liabilities to applicants whom they have placed for employment
Employment Agency Licenses and Security Deposits
According to Singapore law, Ministry Of Manpower (MOM) requires all employment agencies to have an employment agency license before commencing operations. As part of the application process, you will need to set aside up to S$60,000 as a security deposit, or purchase an employment agency bond.
And depending on the type of candidates you intend to work with, you will be required to apply for either a Select or Comprehensive License. The security deposit you need to pay MOM, will depend on the license you are applying for.
- A Select License allows you to place both local and foreign job candidates who will be earning a monthly salary of over S$4,500. | Security deposit: S$20,000.
- A Comprehensive License is meant for all other employment agencies who do not fall under the requirements for a Select License. | Security deposit: S$20,000 to S$60,000.
Your security bond will only be returned 6 months after the termination of your employment agency or expiry of your license.
This means potentially having S$60,000 of capital put aside for the entirety of your agency’s existence – funds that could be put to better use fuelling your business’s growth and operations.
The smarter solution: An employment agency bond
An alternative to locking away up to S$60,000 of your valuable capital, is to purchase an employment agency bond from us.
You can operate your employment agency freely – using the capital that would otherwise have been tied up as a deposit, as a catalyst for accelerating your business operations, marketing, staffing, talent sourcing, and much more.
Contact us today to find out more!
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