The Best Human Resources Skills For Technological Innovation
Looking for manpower expertise and manpower services to support the growth of your company? It is advisable to think about leading manpower agencies. A manpower agency, also called a manpower consultancy, can help you by providing access to manpower resources. Such manpower resources include:
(1) Manpower Consultants
These manpower consultants work as part of an agency and advise you on all aspects of managing manpower issues such as recruitment, HR policy, performance management etc. Their role is more advisory than operational and they cannot force their candidates / workers down your throat. They are not allowed to collect any fees from candidates. Also they do not charge any placement fee either (although some may offer "finders fee" or service charges for changes etc.).
(2) Manpower Rental Agencies
Manpower companies in India do not normally provide manpower consultancy services, but engage in manpower contracting activities. Their manpower resources are engaged by the company through manpower leasing arrangements. They procure candidates/workers for you and charge a monthly rental fee to manage them on your behalf. This is ideal for companies that need manpower support when there are fluctuations in their business volume or during an emergency situation or when you require temporary manpower support without incurring too much long term commitment. Because they are lab our contractors, they are allowed to charge placement fees from candidates / workers who come to work through their agency, however they must be registered under the Employment Agency Act to do so (see para 3 below). The manpower rental agencies will also charge manpower service fees for changes resulting from the manpower lease agreements.
MOM does not approve manpower suppliers who do temporary manpower contracting activities, as the manpower resources are not their employees. But manpower leasing arrangements are acceptable under the Employment Agencies Act, but they must be registered under this Act to legally engage in manpower contracting activities (see para 3 below).
(3) Manpower Employment Agency
These manpower agencies take on full employment agency functions and manage all aspects of manpower issues including recruitment, HR policy, performance management etc. They procure candidates/workers for you and charge a monthly or hourly fee to manage them on your behalf. They can also collect placement fees from workers / candidates they refer to you instead of charging manpower service fees.
Companies are not allowed to collect manpower service fees from manpower agencies for the manpower services provided by manpower agencies, but manpower service fees can be collected from workers / candidates recruited through manpower agencies. If you do so, MOM may take action against your company and ask you to return all manpower service fees collected.
Note: This applies to Singapore companies only and does not apply if the manpower agency is registered under other employment related or lab our laws in other countries (e.g., USA, China etc.). Those manpower outsourcing companies based overseas should therefore ensure that they have a clause within their contract with your company stating that such an arrangement will be illegal under local lab our laws before they commence providing any manpower support to you.
Manpower agencies are required to be registered under the Employment Agency Act (see paras 4a and 5 below) for manpower agency activities unless they are manpower suppliers engaged by manpower agencies.
(4) Employment Agency Licence
For manpower service providers, manpower agencies or manpower suppliers, if you engage manpower consultants or manpower rental agencies on a permanent basis (i.e., not as temporary manpower), these manpower companies need an employment agency licence (EAL). When they submit their EAL application to MOM, they will have to state whether they wish to provide manpower services as a "manpower supplier" or as an "employment agency". In case of the latter, you must also ensure that is stated in your contract with them and manpower suppliers must not charge manpower service fees.
Manpower agencies / manpower consultants who engage manpower rental agencies (i.e., manpower leasing arrangements) must be registered under the Employment Agencies Act (EAA) with their EAL application stating that they provide manpower services as "employment agency".
Note: manpower agencies or manpower rental agencies that wish to engage manpower suppliers cannot also register themselves as manpower agencies. They need separate EALs for manpower agency / manpower supplier and manpower leasing activities respectively.
(5) Employment Agency Licence Application Requirements
The following must be included in the documents submitted when a manpower agency applies for an employment agency licence (EAL). The items marked with * are usually applied by manpower consultants, but if the manpower consultant wants to do manpower rental arrangements then they will have to submit these items too after obtaining their EAL from MOM.
i) Company profile includes company registration number, date of formation, nature of business etc.
ii) Business plan details how the manpower services will be provided, manpower services offered by manpower agency including manpower types and manpower coverage
iii) Manpower profile includes manpower types (S pass / Work permit / Employment pass etc), manpower coverage per manpower type
iv) Staffing framework number of staff required to provide manpower services
v) Location of manpower activities the location where the manpower agency is running its operation or proposing to do so
vi) List of existing subcontractors if manpower supplier is subcontracted for specific manpower services e.g., IT support; s/he may not be registered as a company yet with MOM (if he is already doing business in Singapore); this means that they cannot submit their EAL application electronically yet.
Conclusion :
Alliance International is a recruitment company, providing manpower services in India. We put a lot of effort into delivering Indian and foreign clients a complete choice of high quality human resources at all stages of business employment. Contact us today!
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