Is your first-choice recruitment or executive search firm operating a business that is illegal and not complying with the law? Here is why this is important and why you should know.
Have you ever checked if your preferred supplier of recruitment services is licensed by the Ministry of Labour in Thailand or your local authorities where you operate?
The law in Thailand that regulates the recruitment profession is called “The Recruitment and Job Seeker Protection Act”.
It regulates all types of recruitment companies, from brokers sending Thais overseas to database agencies to executive search firms.
Be aware of un-licensed recruitment companies
The very first Employment Act was enacted just over 50 years ago, back in 1968 (B.E. 2511), and was used for enforcement of overseas employment service businesses.
Due to an increase of incidents where Thai workers were left in trouble overseas, often without passports and money that were held by unscrupulous brokers, the old law was amended to become the Employment and Job Seeker Protection Act 1985 (B.E. 2528). Amendments have been made several times since then.
The purpose of the Act
The purpose of the Act is to provide job seekers good protection when recruitment service providers are involved in the search and hiring process.
The Department of Employment under the Ministry of Labour is in charge and controls the execution of this Act.
Companies who wish to offer employment and recruitment services in Thailand must apply for a license with the Ministry of Labor.
In turn, the company applicant receives a license when it complies with the ministry regulations. A physical inspection of the office premises, by a labour inspector, is one of many requirements to receive the license.
Names of all staff working in a recruitment company must register with the Ministry of Labor by submitting an application, photo and a clean criminal record from the police.
Requirements to obtain a license
Recruitment companies placing Thai nationals in jobs in Thailand is a domestic recruitment service firm.
The juristic person holding the license for domestic recruitment and employment services must be a Thai national.
Such a company must deposit 100,000 Baht as a financial guarantee with the Registrar Officer. The license is valid for two years and must then be renewed for another period.
An overseas employment service provider is a job broker who is sending Thais overseas. Such business must be a company limited or a public company having fully paid registered capital of not less than Baht 1 million and a financial guarantee of Baht 5 million deposited with the Central Employment Registrar Officer.
Recruitment companies are required to submit a monthly report of activities to the Ministry of Labor as well as keep on-site several other reports that can be inspected by the Ministry of Labor.
Do you audit your suppliers?
If your company has a code of conduct, ISO, or other global standards for what kind of suppliers you work with, do not take any chances and do not be a party to breaking the law.
Next time you call an executive search firm or a recruitment company, ask for a copy of their official license to ensure you and they are in compliance with Thai law.