Is your company using an illegal recruitment firm?

  • Reading time:4 mins read

Illegal? Have you ever checked if your preferred supplier of recruitment services is licensed by the Ministry of Labour? Or is your first-choice recruitment or executive search firm operating a business which is illegal and not complying with the law? Here is why this is important and why you should know.

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-lincensed recruitment companies

The very first Employment Act was enacted just over 50 years ago, back in B.E. 2511 (1968), 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 B.E. 2528 (1985). 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. In addition, any staff with client contact must also hold a special Identity Card.

Requirements to obtain a license

The juristic person of a local recruitment and employment service provider must be a Thai national, and the 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 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 the Thai law.

Tom Sorensen

Tom Sorensen is an executive search veteran with over 25 years of experience recruiting in Asia, Europe, and Africa. He has worked in executive search in Thailand since 2003 and is recognized as one of the country’s top recruiters and most profiled headhunters.